When the NBA’s 2023 Collective Bargaining Agreement added restrictive rules built around first and second aprons, some around the industry decried that player movement was dead.
I disagreed, and after several passionate (read: heated, but with respect) discussions, it seems like I was right in an absolute blowout.
When we ran the Mock Trade Deadline Practicum at Sports Business Classroom Immersive Experience in 2023, I ran all the numbers myself to clear the deals (with help from Colleen Finney). At that point, based on prior rules, I had a general feel for what would and wouldn’t work. Immediately, I noticed that it was significantly easier to execute trades; significantly more difficult for teams above the aprons.
Well, given that most of the league is below the luxury tax (via the Sports Business Classroom NBA 2025-26 Luxury Tax Tracker), the aprons aren’t the primary concern. The NBA introduced luxury tax penalties a couple of decades ago, and they generally work, except when they don’t (the Golden State Warriors and LA Clippers just put those penalties into their operating budget before 2023).
When I say the NBA needs to check spending, I often get a “yeah, because they’re cheap” response. While some teams are absolutely “cheap,” the NBA and NBPA have broader concerns to make sure the annual split of Basketball Related Income (BRI) reaches as close to 50/50 as possible (technically a range of 49-51).
When teams spend too much, players collectively receive too much, and each player loses up to 10 percent of their salary for the year (via the league’s escrow system). A player earning $10 million receives $9 million. If the numbers are clean when the year ends on June 30, they’ll get the roster of their money. If not, they don’t, and the following season’s cap will have downward pressure to try and “fix” the imbalance. Last year, the players didn’t get to 91 percent of their salaries.
The SBC NBA 2025-26 Apron Tracker, updated post-trade deadline, details where most teams stand in relation to the aprons. The majority face apron restrictions, but since they’re almost all under the tax, they’re only relevant indirectly.
The system is working as intended, and the trade market is, frankly, bonkers. It’s good for business, given that Bleacher Report has me writing regular trade ideas (some that come through, others identify the “problem,” but not quite the solution—for example, the LA Clippers were open to relocating James Harden, but I didn’t have the Cleveland Cavaliers as the destination).
Good fun to speculate; hopefully, my journey helps folks better understand how the rules (and the league itself) work.
A few other trackers at Sports Business Classroom:
Up next, I’ll be running the SBC All-Star Intensive with Bobby Marks. The Expansion Draft Practicum should be a fun experience; looking forward to how our students handle it.
Then, All-Star Weekend, followed by a stretch to prep fully for the offseason (and before then, playoffs). Can’t wait!
date: 2026-02-10 11:40:00
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