In the NBA salary cap system, the “second apron” is a specific threshold that teams must be mindful of when managing their player salaries. It acts as a hard cap, imposing restrictions on a team’s ability to exceed a certain total team salary once they cross that threshold.
The second apron is set above the luxury tax level, which itself is above the salary cap. It serves as an additional measure to prevent teams from engaging in excessive spending and creating significant disparities in payroll. The second apron is often used to maintain competitive balance and ensure that teams operate within reasonable financial boundaries.
Figures for the 2023-24 season
Salary cap:$136 million
Luxury tax: $165 million
First apron: $172 million
Second apron: $182.5 million
For the 2023-2024 NBA season, the second apron was set at $182.5 million. Once a team’s total salary commitments exceed this amount due to signings or trades that trigger the hard cap, they become subject to various limitations.
When a team is hard-capped, it means they cannot exceed the second apron for the remainder of the season, regardless of any exceptions or circumstances. This restriction significantly impacts a team’s flexibility in making additional player acquisitions or salary-related transactions.
Some of the key implications of being subject to the second apron include:
Limited use of exceptions
Teams above the hard cap have reduced access to certain exceptions, such as the bi-annual exception and the non-taxpayer mid-level exception. These exceptions provide teams with the ability to sign players or exceed the salary cap in specific circumstances.
Sign-and-trade restrictions
When a team exceeds the second apron, they are limited in their ability to engage in sign-and-trade transactions. Sign-and-trades involve acquiring a player while exceeding the salary cap, but such moves are restricted for teams subject to the hard cap.
Constraints on salary adjustments
Teams above the second apron must be cautious when making salary adjustments during the season. Any trade or signing that increases the team’s salary cannot push them beyond the hard cap, making it more challenging to make changes to the roster without corresponding salary reductions.
It’s important for teams to strategically manage their player salaries and plan their roster construction to avoid triggering the second apron if they desire flexibility in acquiring additional talent. Teams that operate near or above the hard cap must be prudent with their financial decisions to avoid limitations on roster moves.
The second apron is just one component of the NBA’s salary cap system that aims to maintain competitive balance and fiscal discipline across the league. It works in conjunction with other salary cap mechanisms to regulate team spending and foster a level playing field for all NBA franchises.
