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What’s the second apron all about?

Posted: Mon Jun 24, 2024 8:25 am
by ArthurVandelay
A great article from CBS Sports laying out what exactly the second apron means to team roster building.

The second apron is the single most restrictive roster-building rule that the NBA has instituted since the invention of the salary cap. Here is a list of ways it limits teams that cross that line:

- No access to the taxpayer mid-level exception. These teams can only sign players for the minimum.

- No access to buyout players. If a player's salary at the beginning of a league year is above the non-taxpayer mid-level exception, he cannot sign with a second-apron team if he is waived during that season.

- No aggregating salaries in trades. Basically, you can't trade two $20 million players for a $40 million player, or a $40 million player and a $10 million player for two $25 million players.

- No flexibility in matching salaries through trades. Second-apron teams must send out as much or more money than they are taking back in any trade.

- No giving away cash in trades.

- No sign-and-trading your own players in exchange for other players.

- No trading first-round picks that are seven years away. These picks become "frozen," meaning they cannot be traded, and if a team spends more than two consecutive years above the second apron, those picks automatically move to the end of the first round.


While this isn't specifically an apron rule, it's worth noting that the league's luxury tax rate model is changing in the 2025-26 season. In short, it will be cheaper to pay the tax if you're only slightly over the line, but far more expensive to pay it if you're far enough above the line to be considered a second-apron team. This is especially true if you are also a repeater tax team.


If all of that is too complicated, here's the short explanation: once you've crossed the second apron, you're probably stuck with the roster you have short of minor changes, and it's hard to imagine any team spending more than two straight years above the line and knocking their own future picks to the end of the first round.


https://www.cbssports.com/nba/news/nba-free-agency-is-going-to-be-defined-by-the-new-cba-how-second-apron-changes-the-game-for-roster-building/

Scary ****.


The article also discusses cap smoothing and the value that can create for teams due to cap going up 10% a year compounded while contracts only rise 8% or 5%.

The cap is going to rise faster than contracts can grow with it. In other words, the longer you sign a player now, the more relative value you can squeeze out of those deals at the end of them. They are worth a smaller and smaller percentage of the cap each year.


Every player and every team is ultimately going to be different. By all means, offer short-term contracts to older or injury-prone players. Extra caution is especially warranted on max-level players, because a miss on one of them can be downright disastrous. But aggression is going to be warranted on younger and healthier starters, because if you get those contracts right, you're going to create a ton of surplus value at a moment in which all of your competitors are afraid to try to do the same.

Re: What’s the second apron all about?

Posted: Mon Jun 24, 2024 8:34 am
by ArthurVandelay
Teams second apron immediately impacting via Spotrac:

Phoenix - $203m
Minnesota - $193m
Boston - $190m
Denver - $188m (KCP opt out -$15m)
Milwaukee- $183m
Miami - $182m (Caleb Martin opt out -$7m)

https://www.spotrac.com/nba/tax/_/year/2024/sort/tax_total

Re: What’s the second apron all about?

Posted: Mon Jun 24, 2024 1:33 pm
by WuTang_CMB
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Re: What’s the second apron all about?

Posted: Mon Jun 24, 2024 1:51 pm
by OakleyDokely
my favorite apron

Image

Re: What’s the second apron all about?

Posted: Mon Jun 24, 2024 2:17 pm
by dagger
Minnesota's situation is fascinating because they have almost all of their future money tied up in players they want, and need. And they also lack a backup point guard if they don't re-sign Monte Morris. Ownership is in a court battle.

Re: What’s the second apron all about?

Posted: Mon Jun 24, 2024 2:41 pm
by Scase
ArthurVandelay wrote:Teams second apron immediately impacting via Spotrac:

Phoenix - $203m
Minnesota - $193m
Boston - $190m
Denver - $188m (KCP opt out -$15m)
Milwaukee- $183m
Miami - $182m (Caleb Martin opt out -$7m)

https://www.spotrac.com/nba/tax/_/year/2024/sort/tax_total

MIA and PHO stand out the most, MIA is still in a better position mind you.

BOS just won a chip, so it's warranted, DEN/MIN/MIL are all legit contenders so those make sense as well. Seems like most teams are smart enough to stay below it for the time being.

Re: What’s the second apron all about?

Posted: Mon Jun 24, 2024 2:50 pm
by billy_hoyle
dagger wrote:Minnesota's situation is fascinating because they have almost all of their future money tied up in players they want, and need. And they also lack a backup point guard if they don't re-sign Monte Morris. Ownership is in a court battle.


If they can straddle the lux tax line, I'd say they aren't really that affected. Sounds like teams are less impacted by being slightly over the line.

Like you said, they have 4/5 starters covered. Most are young.

Use your late firsts on C and PG prospects.

Re: What’s the second apron all about?

Posted: Mon Jun 24, 2024 3:00 pm
by OakleyDokely
I think Minny might better off eventually trading Towns for 2-3 good pieces to surround Edwards/Gobert with.

Just don't see how they can keep all three of those guys, plus pay McDaniels 25M plus extend Reid at big money. Reid is going to get a 4/100 type deal, if not more.

Re: What’s the second apron all about?

Posted: Mon Jun 24, 2024 3:12 pm
by Spida888
OakleyDokely wrote:I think Minny might better off eventually trading Towns for 2-3 good pieces to surround Edwards/Gobert with.

Just don't see how they can keep all three of those guys, plus pay McDaniels 25M plus extend Reid at big money. Reid is going to get a 4/100 type deal, if not more.

Absolutely they should shop Towns. Dude is really talented but low IQ, soft, and not reliable. Keeps on fouling out in critical moments.

With the new CBA rules though, I wonder if his value would be low due to his monstrous contract and approaching 30 years old as well.

Re: What’s the second apron all about?

Posted: Mon Jun 24, 2024 3:15 pm
by AkelaLoneWolf
Reid has gotten a bit overhyped now. Would be good to sell high on him.

Re: What’s the second apron all about?

Posted: Mon Jun 24, 2024 3:31 pm
by dTox
dagger wrote:Minnesota's situation is fascinating because they have almost all of their future money tied up in players they want, and need. And they also lack a backup point guard if they don't re-sign Monte Morris. Ownership is in a court battle.


And their team Pres, one of the most highly sought after execs, has an opt out close every year of his contract (this year onwards), I suspect if Glen Taylor wins the ownership battle, then Tim C. is out as team pres, he came in after being woo'd by A-Rod.

Re: What’s the second apron all about?

Posted: Mon Jun 24, 2024 7:29 pm
by JB7
Spida888 wrote:
OakleyDokely wrote:I think Minny might better off eventually trading Towns for 2-3 good pieces to surround Edwards/Gobert with.

Just don't see how they can keep all three of those guys, plus pay McDaniels 25M plus extend Reid at big money. Reid is going to get a 4/100 type deal, if not more.

Absolutely they should shop Towns. Dude is really talented but low IQ, soft, and not reliable. Keeps on fouling out in critical moments.

With the new CBA rules though, I wonder if his value would be low due to his monstrous contract and approaching 30 years old as well.


Other than the Knicks, GSW would make sense as well for Towns. GSW still has contracts that will expire in one year, to save the Twolves money, and they could get Kuminga in the deal. See if GSW can rehabilitate Towns image like they did Wiggins.

Re: What’s the second apron all about?

Posted: Mon Jun 24, 2024 7:30 pm
by JB7
Scase wrote:
ArthurVandelay wrote:Teams second apron immediately impacting via Spotrac:

Phoenix - $203m
Minnesota - $193m
Boston - $190m
Denver - $188m (KCP opt out -$15m)
Milwaukee- $183m
Miami - $182m (Caleb Martin opt out -$7m)

https://www.spotrac.com/nba/tax/_/year/2024/sort/tax_total

MIA and PHO stand out the most, MIA is still in a better position mind you.

BOS just won a chip, so it's warranted, DEN/MIN/MIL are all legit contenders so those make sense as well. Seems like most teams are smart enough to stay below it for the time being.


Suns are absolutely insane if they don't try and deal Durant for a haul. They are going no where with that roster, and their ability to improve it only worsens every moment they wait.

Re: What’s the second apron all about?

Posted: Mon Jun 24, 2024 7:31 pm
by will
is Teanna Trump wearing the apron?

I had to resurrect this bit.

Re: What’s the second apron all about?

Posted: Mon Jun 24, 2024 8:25 pm
by Scase
JB7 wrote:
Scase wrote:
ArthurVandelay wrote:Teams second apron immediately impacting via Spotrac:

Phoenix - $203m
Minnesota - $193m
Boston - $190m
Denver - $188m (KCP opt out -$15m)
Milwaukee- $183m
Miami - $182m (Caleb Martin opt out -$7m)

https://www.spotrac.com/nba/tax/_/year/2024/sort/tax_total

MIA and PHO stand out the most, MIA is still in a better position mind you.

BOS just won a chip, so it's warranted, DEN/MIN/MIL are all legit contenders so those make sense as well. Seems like most teams are smart enough to stay below it for the time being.


Suns are absolutely insane if they don't try and deal Durant for a haul. They are going no where with that roster, and their ability to improve it only worsens every moment they wait.

Yeah, they completely fumbled the whole situation. They are at the point where it might make sense to burn it all down soon, I dont see how they recover with Beals contract on the books, him and Booker alone are 100mil+ in salary. How the hell do you do anything with that, and the performance they are getting out of it. They have got to be objectively in the worst position possible in the NBA.

Re: What’s the second apron all about?

Posted: Mon Jun 24, 2024 11:08 pm
by JB7
Scase wrote:
JB7 wrote:
Scase wrote:MIA and PHO stand out the most, MIA is still in a better position mind you.

BOS just won a chip, so it's warranted, DEN/MIN/MIL are all legit contenders so those make sense as well. Seems like most teams are smart enough to stay below it for the time being.


Suns are absolutely insane if they don't try and deal Durant for a haul. They are going no where with that roster, and their ability to improve it only worsens every moment they wait.

Yeah, they completely fumbled the whole situation. They are at the point where it might make sense to burn it all down soon, I dont see how they recover with Beals contract on the books, him and Booker alone are 100mil+ in salary. How the hell do you do anything with that, and the performance they are getting out of it. They have got to be objectively in the worst position possible in the NBA.


Was it their owner who said there are 26 other teams that would love to be in their position?

I’m guessing he was talking about teams outside of the NBA :lol:

Re: What’s the second apron all about?

Posted: Mon Jun 24, 2024 11:21 pm
by Scase
JB7 wrote:
Scase wrote:
JB7 wrote:
Suns are absolutely insane if they don't try and deal Durant for a haul. They are going no where with that roster, and their ability to improve it only worsens every moment they wait.

Yeah, they completely fumbled the whole situation. They are at the point where it might make sense to burn it all down soon, I dont see how they recover with Beals contract on the books, him and Booker alone are 100mil+ in salary. How the hell do you do anything with that, and the performance they are getting out of it. They have got to be objectively in the worst position possible in the NBA.


Was it their owner who said there are 26 other teams that would love to be in their position?

I’m guessing he was talking about teams outside of the NBA :lol:


Top notch shilling when you know you have to trade KD. That team is going nowhere fast lol