The NBA season may have ended just recently, but the NBA offseason has already seen a myriad of big moves from contenders that may have NBA fans scratching their heads.
Most notably, the Boston Celtics, just two years removed from an NBA title and still very much in their championship window, traded away two key contributors in quick succession. The team sent guard Jrue Holiday to the Portland Trail Blazers and center Kristaps Porzingis to the Atlanta Hawks. Given how vital each of these players were to the team’s championship run in 2024, these moves seem atrocious at first glance.
However, the Celtics didn’t have much of a choice. The team needed to shed salary in order to get under the second apron threshold. But what is that?
Essentially, the apron system is a soft cap enforced on every team in the league. It is a series of payroll markers that, once crossed, invoke serious penalties on each team that crosses them. These penalties are severe and can damage an organization’s long-term ability to build a championship contender.
NBA players like four-time champion Draymond Green have already expressed discontent with the system, claiming that it prevents the creation of super teams, which has always been a huge draw for NBA fans. Unfortunately for Green, the second apron was agreed upon by the National Basketball Players’ Association when negotiating the latest CBA in 2023.
Here’s everything to know about the NBA’s controversial financial rule.
When did the aprons first come into effect?
The apron system came into effect as part of the 2023 Collective Bargaining Agreement and began prior to the 2024 season.
What are the limits for the aprons this year?
For the upcoming 2025-26 season, the salary cap is projected to be $154.6 million. Any team that crosses this threshold will be forced to pay the luxury tax. However, that hasn’t stopped teams from spending far beyond the luxury tax threshold in the past. The luxury tax threshold is set at $187.9 million.
The first apron does not come into effect until a team reaches $195.9 million for their payroll. The second apron is set at approximately $207.8 million, a $17.8 million increase from last year.
What are the penalties for crossing each threshold?
Penalties via Spotrac:
First apron:
Team loses access to sign-and-trades if the player acquired in the deal keeps the team above the first apron
Team cannot sign waived players with a salary above the mid-level exception ($12.8 million)
When trading, teams cannot use more than 100% in salary matching in a trade
Second apron (includes all first apron penalties):
Team loses access to the mid-level exception in free agency
Team cannot aggregate two or more player salaries in a trade
Team loses option to use trade exceptions agreed to in previous years
Team cannot send out cash in trade negotiations
Though not an immediate ramification of the second apron, any team that remains above the second apron threshold for three years of any five-year period will be forced to move their next first-round pick to the end of the first round, regardless of finish in the previous year or lottery results.
Which teams are currently above the apron thresholds?
Currently, the only teams in danger of opening the 2025-26 season above the second apron are the Cleveland Cavaliers and Phoenix Suns (even after the Durant trade). The Boston Celtics were in that group, but the recent trades of Holiday and Porzingis have moved them out of the second apron. They are still above the first apron, though.
Other teams close to the second apron include the Denver Nuggets and New York Knicks.
When does the NBA offseason begin?
The NBA offseason officially begins Monday, June 30, at 6 p.m. ET. Per USA Today’s Jeff Zillgitt, ‘That’s when teams and players can start agreeing to terms of a contract. However, contracts can’t officially be signed until July 6.’