Apron Threshold
| First Apron | $195,945,000 |
| Second Apron | $207,824,000 |
Apron Team Salary Calculation
In determining if a Team falls above or below the First or Second Apron, Apron Team Salary is used.
Apron Team Salary takes Team Salary, subtracts applicable Cap Holds, and includes the following (click to review details).
- Team Salary less Cap Holds;
- Unlikely Bonuses;
- Salary Attributable to 0 to 1 YOS Contracts;
- Potential Additions from Grievances/Settlements;
- Qualifying Offers/Matches;
- Required Tender;
- Second Round Pick Exception.
Team Salary
Apron Team Salary includes Team Salary after subtracting all applicable Cap Holds.
Unlikely Bonuses
Apron Team Salary adds Unlikely Bonuses, which are not included in the initial calculation of Team Salary.
0 to 1 Years of Service Contracts
A Player’s Salary is increased to Minimum Salary for 2 YOS in situations when a Player signs as a Free Agent and has less than 2 YOS, called a 0 to 1 YOS Contract in the Guide.
A Contract is a 0 to 1 YOS Contract if the following criteria is met:
- Player signs as a Free Agent;
- Player has 0 or 1 Years of Service;
- Player signs a Standard NBA Contract which can include (for purposes of this rule) the following, so long as such were signed as Free Agents:
- Exhibit 10 Contract;
- Two-Way Contract converted to a Standard Contract;
- 10-Day Contract.
When a 0 to 1 YOS Contract is signed, you add the difference between his Salary (for Team Salary purposes) and the applicable Minimum Salary for a Player with 2 YOS. In other words, you’re switching his applicable Minimum Salary for that of a 2 YOS Minimum Salary.
In 2024-25, Brenden Carlson signed with the Oklahoma City Thunder for a Minimum Salary Contract in the middle of the season. He had 0 YOS. His Team Salary was a pro-rated $990,895, applicable to a Player with 0 YOS. However, his Apron Salary was $1,787,599, applicable to a Player with 2 YOS.
Settlements/Grievances
Adjust Apron Team Salary for any amount that could be added to Team Salary as a result of a Grievance or Settlement.
Qualifying Offers and First Refusal Exercise Notices
The greater of (i) Salary plus Unlikely Bonuses called for in any oustanding Qualifying Offer or (ii) the Salary plus Unlikely Bonuses called for in any First Refusal Exercise Notice issued with respect to such Player.
Required Tender
The amount of any outstanding Required Tender.
Second Round Pick Exception
Any amount that was excluded from Team Salary between 7/1 through 7/30 because the Player signed as a Second Round Pick Exception.
Apron Limitations Table
If the Team’s Apron Team Salary exceeds the applicable Apron Threshold after executing the transaction, then the Team is prohibited from executing the transaction:
| Transaction | Apron Limitation | |
|---|---|---|
| A | Team signs or acquires a Player using the Bi-Annual Exception | First Apron |
| B | Team signs or acquires a Player using the NTMLE | First Apron |
| C | Team acquires a Player via Sign-and-Trade | First Apron |
| D | Signs (i) a waived Player (ii) during the Regular Season (iii) whose waived Salary exceeded the NTMLE amount | First Apron |
| E | Team acquires Player using the Expanded TPE | First Apron |
| F |
If a Team uses the Standard TPE: 1. If it arose during Regular Season, it was used after the Regular Season; 2. If it arose after the Regular Season, it was used after the last day of the subsequent Regular Season |
First Apron |
| H | Team acquires a Player using the Aggregated TPE | Second Apron |
| I | Team pays Cash-in-Trade | Second Apron |
| J | Team acquires a Player using one of the Traded Player Exceptions which Traded Player Exception created via Sign-and-Trade | Second Apron |
| K | Team signs a Player using the TMLE | Second Apron |
On February 6, 2025, the Cavs generated an $8.5 million TPE when they traded Georges Niang to the Hawks as part of the De’Andre Hunter trade. However, because the Cavs are over the First Apron and the TPE arose during the Regular Season, the TPE cannot be used unless they drop back below the First Apron.
Transactions After Regular Season
General Rule
If a Transaction is executed after the Regular Season before the new Salary Cap Year, then the Team must be below the applicable Apron Threshold for the current Salary Cap Year and the subsequent Salary Cap Year.
Calculating Apron Team Salary for Subsequent Year
In calculating Apron Team Salary for the subsequent Salary Cap Year, you make the following assumptions:
- Keep Apron Thresholds the same as the current Salary Cap Year;
- Treat all Team/Player Options as exercised;
- No outstanding ETO‘s are exercised;
- No further transactions considered for remainder for then-current Salary Cap Year;
- A Player met the Higher Max Criteria to reach a higher salary conditioned in his contract.
The Hard Cap
Current Season Hard Cap
If a Team executes a Transaction that has an applicable Apron threshold, then the Team is hard capped and cannot exceed that applicable Apron Threshold for the remainder of the Salary Cap Year.
In July 2025, the Kings acquired Dennis Schröder via Sign-and-Trade. Acquiring a Player via Sign-and-Trade is a First Apron limitation. As a result, the Kings are hard capped at the First Apron for the remainder of the 2025-26 Salary Cap Year.
Subsequent Season Hard Cap
If the Team executes the Transaction after the Regular Season but before the new Salary Cap Year, then the Team is also hard capped the subsequent Salary Cap Year.
In June 2025 (prior to the start of the 2025-26 Salary Cap Year), the Magic used the Aggregated TPE to acquire Desmond Bane. The Magic are hard capped at the Second Apron for the 2025-26 Salary Cap Year.
Second Apron Draft Pick Penalties
Frozen Pick
If a Team is over the Second Apron at the end of the Regular Season, then its 1st Round Pick in the Draft seven years in the future is Frozen can’t be traded (conditionally or unconditionally).
Take the year the Regular Season ended and add seven. This is the year the Draft Pick is frozen. So if the Team is over the Second Apron in the 2027-28 Season. The Regular Season ends in 2028. 2028 + 7 = 2035 Draft Pick is frozen.
In the first season the Frozen Pick Rule was implemented, the Celtics, Suns and Wolves finished the Regular Season over the Second Apron and saw their 2032 1st Round Picks frozen. We have not had enough time go by to see if the Teams will dip below the Second Apron to avoid the Sliding of those picks (discussed below), or whether those picks will unfreeeze in the future.
Sliding or Unfreezing Pick
After the Draft Pick is frozen, you review the subsequent 4 Seasons to determine if it slides to the end of the draft or unfreezes:
- If the Team exceeds the Second Apron Threshold in 2 of the 4 subsequent Salary Cap Years, then the Frozen Pick slides to the end of the First Round;
- If the Team exceeds the Second Apron for fewer than 2 of the 4 subsequent Salary Cap Years, the pick will Unfreeze after the last day of the Regular Season in the 3rd Year the Team did not exceed the Second Apron.
If multiple Draft Picks in the same Season slide to the end of the Draft, then they are ordered in line with the Team’s record.
A pick will either slide to the end of the Draft or unfreeze. There is no circumstance where a pick will slide to the end of the Draft but be unfrozen.