How do the NBA salary cap rules really work?

[Roy H.]

When will the Celtics be able to trade Grant Williams and his "cap hold" of $6 million during this offseason? Is it necessary for him to secure a new contract or settle for the qualifying offer prior to being traded?

Correct.  Unlike in the NHL, you can't trade a player's "rights". 

If we sign and trade him immediately, we become hard-capped at the luxury tax apron.

If we sign him to a qualifying offer or a new deal, it's at least December 15, and may be January 15.

[JSD]

When will the Celtics be able to trade Grant Williams and his "cap hold" of $6 million during this offseason? Is it necessary for him to secure a new contract or settle for the qualifying offer prior to being traded?

Correct.  Unlike in the NHL, you can't trade a player's "rights". 

If we sign and trade him immediately, we become hard-capped at the luxury tax apron.

If we sign him to a qualifying offer or a new deal, it's at least December 15, and may be January 15.

Thank you. If that's the case, it would seem that Grant can simply walk, and the Celtics get nothing.

[BASS_THUMPER]

How do the NBA salary cap rules really work?


i wanna Steak




but all i can afford is..




either you can afford it or you cant....

thats how it works,,

*sippin*

[Kernewek]

When will the Celtics be able to trade Grant Williams and his "cap hold" of $6 million during this offseason? Is it necessary for him to secure a new contract or settle for the qualifying offer prior to being traded?

Correct.  Unlike in the NHL, you can't trade a player's "rights". 

If we sign and trade him immediately, we become hard-capped at the luxury tax apron.

If we sign him to a qualifying offer or a new deal, it's at least December 15, and may be January 15.

Thank you. If that's the case, it would seem that Grant can simply walk, and the Celtics get nothing.

He's an restricted free agent, so that's not entirely true.

[otherdave]

New topic:

So old CBA had a enhanced repeater tax:   if over the apron 3 out of 4 years, repeater rate would kick in for year 5.

New CBA has a similar enhanced repeater tax for being over the 2nd apron - so far so good.

Here's my question:

Say the last two years Team A was over the apron - do those 2 years count under the new 2nd apron look back period, OR

did every team's "clock" reset back to zero years under the new CBA rules?

[Celtics2021]

New topic:

So old CBA had a enhanced repeater tax:   if over the apron 3 out of 4 years, repeater rate would kick in for year 5.

New CBA has a similar enhanced repeater tax for being over the 2nd apron - so far so good.

Here's my question:

Say the last two years Team A was over the apron - do those 2 years count under the new 2nd apron look back period, OR

did every team's "clock" reset back to zero years under the new CBA rules?

I don’t know the answer for sure, but my guess is that the clock would not reset, in part because the new CBA has kept the original tax brackets for the next two seasons, and then is updating them.  So it would appear the intent would be for things to continue as they were and transition into the new system, rather than have an abrupt change.

If my hotel WiFi worked, I’d pull up the CBA on my laptop, but there’s no way I’m finding out that answer on my phone.

[Roy H.]

New topic:

So old CBA had a enhanced repeater tax:   if over the apron 3 out of 4 years, repeater rate would kick in for year 5.

New CBA has a similar enhanced repeater tax for being over the 2nd apron - so far so good.

Here's my question:

Say the last two years Team A was over the apron - do those 2 years count under the new 2nd apron look back period, OR

did every team's "clock" reset back to zero years under the new CBA rules?

I don't think there is a look back period for the 2nd apron.  I think it's only prospective.  The draft pick freeze and related penalties go into effect in 2024-2025, so even this season doesn't "count" toward the 2A repeater penalties.

Now, related to *first apron* repeater financial penalties, I assume those still continue as under the old CBA.

[keevsnick]

New topic:

So old CBA had a enhanced repeater tax:   if over the apron 3 out of 4 years, repeater rate would kick in for year 5.

New CBA has a similar enhanced repeater tax for being over the 2nd apron - so far so good.

Here's my question:

Say the last two years Team A was over the apron - do those 2 years count under the new 2nd apron look back period, OR

did every team's "clock" reset back to zero years under the new CBA rules?

I don't think there is a look back period for the 2nd apron.  I think it's only prospective.  The draft pick freeze and related penalties go into effect in 2024-2025, so even this season doesn't "count" toward the 2A repeater penalties.

Now, related to *first apron* repeater financial penalties, I assume those still continue as under the old CBA.

Ya this is right, 2nd apron draft pick penalty begins in 24-25, but repeater tax is penalties already in effect and counts years played under the old CBA. This makes sense tho, the current tax rules haven't changed much but the 2nd apron thing is new. Wouldn't make sense to punish teams for past instances of a new rule.

One thing that is changing is the severity of the penalties. Beginning in the 25-26 season (the first year the c's could be in the repeater" the repeater tax rates take a large jump from their current levels. The tax per dollar would be 3.0/3.25/5.5/6.75 for the first 4 repeater brackets starting in 25-26. That's even more punitive than the current repeater tax, and FAR more punitive than the current non repeater tax the c's will pay in 23-24 which is just 1.5/1.75/2.5/3.25 for the first four brackets.

[Roy H.]

New topic:

So old CBA had a enhanced repeater tax:   if over the apron 3 out of 4 years, repeater rate would kick in for year 5.

New CBA has a similar enhanced repeater tax for being over the 2nd apron - so far so good.

Here's my question:

Say the last two years Team A was over the apron - do those 2 years count under the new 2nd apron look back period, OR

did every team's "clock" reset back to zero years under the new CBA rules?

I don't think there is a look back period for the 2nd apron.  I think it's only prospective.  The draft pick freeze and related penalties go into effect in 2024-2025, so even this season doesn't "count" toward the 2A repeater penalties.

Now, related to *first apron* repeater financial penalties, I assume those still continue as under the old CBA.

Ya this is right, 2nd apron draft pick penalty begins in 24-25, but repeater tax is penalties already in effect.

One thing that is changing is the severity of the penalties. Beginning in the 25-26 season (the first year the c's could be in the repeater" the repeater tax rates take a large jump from their current levels. The tax per dollar would be 3.0/3.25/5.5/6.75 for repeaters starting in 25-26. That's even more punitive than the current repeater tax.

My question:  why did a union that is adamantly opposed to a hard cap agree to this CBA so peacefully?

Those repeater tax penalties + the second apron financial restrictions + draft pick penalties are a de facto hard cap.  Yes, the richest teams can exceed it every once in awhile, but no team can live above the second apron like they used to.