jterrell
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This is expected to be phased in but it is major:According to ESPN’s Adrian Wojnarowski, there is now a second apron being implemented that will severely limit the ways teams over it can spend. The threshold is for teams $17.5 million over the luxury tax threshold, and restrictions for those above it include:
- No access to the mid-level exception (MLE), including the taxpayer MLE. The present-day apron is triggered when a team utilizes more than the taxpayer MLE amount. The second apron would get triggered if a team uses any portion of the MLE.
- Not being able to take in more salary in a trade than they’re sending out. Teams over the luxury tax are currently allowed to take back up to 125 percent of their outgoing salaries, but that will be eliminated for them.
- Not being able to trade a first-round pick seven years out or cash. This would now allow teams to trade their 2030 first-round pick this season.
- Not being able to sign buyout players.
Examples:
Team could now only trade of their own 3 R1s in any deal versus 4 now.
Team cannot recoup a rotation player with MLE as those over tax line by tons do now. In fact those teams have been at top of list for MLE guys and will now be limited to vet minimum.
Similarly, team cannot sign buy out guys who again were targeting these teams. Now they cannot be signed to them even for the vet minimum.
I believe the net chance of this is that R1 picks and young talent on cheaper deals will gain tons of value.
The PHX Beal trade may be the last of its kind.
I think you'll see more deals where a team has 3 max guys and the least of those max guys is getting traded off at a major loss to reduce salary and regain roster flexibility.
I think this will drive salaries down a good bit.
Guys likely aren't going to be an automatic max for just being good anymore.
Going to have to be great.