04-25-2023, 10:13 AM
Hollinger posted an article yesterday that delves into the difficulties teams like LAC and GSW will have with the provisions of the new CBA going forward. He indicates he’s seen the Term Sheet of the new CBA and in the article he reveals some things I’ve not seen before. Some of the new things are additions to how the second apron punishes teams from a competitive standpoint. Some are new impacts on teams over the first apron (which probably impact Dallas).
First a recap of the things we’ve heard about teams over the second apron:
No Mid-Level Exception
Can’t use cash in trades
Can’t trade for more money than sending out (no 125% trade spread)
Can’t trade a first rounder that is 7 years out.
Can’t sign a buyout player if they made more than the MLE
If over the second apron more than one year in four, pick that year moves to #30
Repeater penalty Doubles.
The new things he mentions above the second apron are:
No Aggregation in trades
Not even ‘Aggregation down’
The latter he explains as follows:
“In other words, a team couldn’t trade two players who make $20 million each for one who makes $30 million and one who makes the minimum, even though the net effect would be to lower payroll for a high-spending team.”
I suspect Dallas (and many others with few exceptions on an occasional basis) will view $17.5mm over the tax line as a hard cap. But, Hollinger reports there are new prohibitions for teams who are $7mm over the tax (the first apron). They are:
A smaller TP MLE ($5mm with a contract limit of 2 years)
Same Buyout restrictions as above
100% Trade Multiplier (not 125%)
He reports that the Second Apron punishments will be phased in over two years to give teams some time to adjust. I’ve read, for instance, that the 100% Trade Multiplier rule will be 110% this coming season and 100% next. Hollinger doesn’t have much detail on how all the phase ins will work or how it will impact first apron teams. But, there is a chance a lot of the deals we’ve contemplated (and the size of the MLE we will have available) won’t be what we’ve presumed. If all of this kicks in for 23/24, Dallas may be working with under $169mm instead of needing to stay under $180mm. It makes pre July 1 trades more likely. It would be nice to be Sam Presti right about now.
https://theathletic.com/4444189/2023/04/...hollinger/
First a recap of the things we’ve heard about teams over the second apron:
No Mid-Level Exception
Can’t use cash in trades
Can’t trade for more money than sending out (no 125% trade spread)
Can’t trade a first rounder that is 7 years out.
Can’t sign a buyout player if they made more than the MLE
If over the second apron more than one year in four, pick that year moves to #30
Repeater penalty Doubles.
The new things he mentions above the second apron are:
No Aggregation in trades
Not even ‘Aggregation down’
The latter he explains as follows:
“In other words, a team couldn’t trade two players who make $20 million each for one who makes $30 million and one who makes the minimum, even though the net effect would be to lower payroll for a high-spending team.”
I suspect Dallas (and many others with few exceptions on an occasional basis) will view $17.5mm over the tax line as a hard cap. But, Hollinger reports there are new prohibitions for teams who are $7mm over the tax (the first apron). They are:
A smaller TP MLE ($5mm with a contract limit of 2 years)
Same Buyout restrictions as above
100% Trade Multiplier (not 125%)
He reports that the Second Apron punishments will be phased in over two years to give teams some time to adjust. I’ve read, for instance, that the 100% Trade Multiplier rule will be 110% this coming season and 100% next. Hollinger doesn’t have much detail on how all the phase ins will work or how it will impact first apron teams. But, there is a chance a lot of the deals we’ve contemplated (and the size of the MLE we will have available) won’t be what we’ve presumed. If all of this kicks in for 23/24, Dallas may be working with under $169mm instead of needing to stay under $180mm. It makes pre July 1 trades more likely. It would be nice to be Sam Presti right about now.
https://theathletic.com/4444189/2023/04/...hollinger/
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