NBA: 6 Important Aspects Of The New Collective Bargaining Agreement
By Ti Windisch
The Luxury Tax Apron
For teams that already have their stars, changes to the luxury tax apron are very important. Once a team uses one of a few cap exceptions, such as the mid-level exception to sign a player while over the cap, they are barred from exceeding the tax apron.
In past years, the apron was $4 million above the tax line. Teams had $4 million to play with if they were over the tax, but if they used the bi-annual exception, mid-level exception or a sign-and-trade transaction during the season they were hard-capped at the apron.
Now that figure is $6 million instead. That may sound inconsequential, but the hard cap can be tough to get around for teams short on cash. Even minimum contracts are not allowed for hard-capped teams if it would push them over the apron.
That $2 million will end up mattering for some teams, like the Warriors, who need every last dollar they can get when trying to assemble a roster around a core of stars.
It’s a small recompense considering how much those teams will have to pay to keep their stars, but this is something in the new CBA to help teams out slightly.