The NBA has introduced a term that is gaining significant traction among teams and fans alike: the second apron. This idea imposes a hard spending cap on teams. Once they go above this cap, it limits their capacity to improve them through free agency or trade. The original members of this exclusive club were the Boston Celtics, Phoenix Suns, and Minnesota Timberwolves. Now, faced with daunting fiscal realities, they operate in a highly competitive landscape.
As teams have tried to navigate for competitive balance, the challenges of playing under the second apron have been highlighted more and more. The limitations prevent any over-the-apron teams from sending cash in deals. They bar these teams from accessing important exceptions that allow them to round out their rosters. Under the current structure, when teams go over this threshold they are forced to make painful decisions that change their future direction.
Over the next few seasons, the Orlando Magic don’t need to fear the long, shadowy reach of the second apron. In the meantime, teams such as Denver make the most of their greater competitive freedom from below this fiscal concrete wall. Grasping these dynamics will be essential for fans and analysts alike as we all monitor the chess game that each franchise is strategically playing.
Understanding the Second Apron Rules
We agree with the league’s decision to introduce second apron rules to rein in team spending. This move intends to encourage competitive balance throughout the NBA. Teams breaking this threshold face a host of limitations. These constraints can significantly limit their potential to strike home run trades or free agency signings.
For example, teams over the second apron can’t send cash in trades, further restricting their negotiating flexibility. They wouldn’t be able to use at least $5.7 million of the non-tax midlevel exception. This tool is incredibly important for teams looking to acquire talent without jeopardizing salary cap space. Alternatively, just like the traded player exception, they can’t use greater than 100% of the traded player exception in acquisitions via trades. This limitation even has ramifications for how they’re able to build their roster.
“The second apron rules do not allow a team to jump to the head of the line in how you build a roster,” – an Eastern Conference GM
These limitations combine to stretch the roster-building landscape thin for organizations looking to improve their rosters while being responsible for long-term financial obligations. The consequences of these rules is profound, affecting not only the players in a single transaction but the entire roster-building strategies of every team.
The Current Members of the Second Apron Club
The Boston Celtics, Phoenix Suns, and Minnesota Timberwolves are the original members of the second apron club, each facing unique challenges as they navigate these financial restrictions.
The Celtics have been working all offseason to dump salary after their over the second apron finish last season. Tatum, White, and Brown all remain under contract for at least the next four seasons. This ensures an impressive core moving with the team into the future. Yet their recent accomplishments drive home their pledge to remain creative and competitive, though working within the limits set by the apron.
“We’ve known for a long time that hard decisions were coming,” – Brad Stevens
The Timberwolves faced major penalties for going over the second apron last year. In the process, they loaded up on a franchise-record $90 million tax penalty, which emphasizes the danger in running over this financial precipice.
Meanwhile, the Phoenix Suns are stealing headlines with their blue-chip trades and free agent signings. They can no longer ignore the impact of going over the second apron. In accepting the plan, his General Manager Mat Ishbia had to show faith that his brain trust could chart a course through these obstacles to assemble a championship-caliber roster.
“I read it, I know it inside and out, and we made a calculated decision that we think the team with the best players wins,” – Mat Ishbia
Looking Ahead: Teams on the Brink
Teams are still trying to figure out where they fit into the new financial landscape. Which franchises are best positioned to escape from or remain entrenched in the second apron club going forward. The Orlando Magic are projected to be a second apron team but have enough flexibility to leap out next season. With four players currently on salaries exceeding $32 million — including young talents Paolo Banchero, Franz Wagner, and Jalen Suggs — their financial future appears promising.
Everyone else on Banchero’s team is under the age of 25. They are all signed on through at least the 2028-29 season. This young core leaves Orlando with immense upside, but they’ll have to dance around the treacherous new second apron rules.
Denver is on pace to be $34 million under the second apron at the start of the 2026-27 season. This monetary comfort provides them significant breathing room in upcoming roster choices.
“We’re very conscious of that, pushing forward and providing the resources we can when the moment arrives,” – Josh Kroenke
Such contrasts between franchises underline how different approaches to roster construction and financial management can yield varying outcomes within this new landscape.
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