With the NBA draft recently concluded, teams across the league are now shifting their attention to the upcoming free agency period and potential trade opportunities.
A key question for many front offices is how much salary cap space is available, and which teams might be able to create additional room. Understanding the salary cap and the limitations imposed by the first or second apron is crucial, as these restrictions significantly impact roster construction. Teams might also consider cost-saving trades to reduce luxury tax burdens, following the example of teams like the Boston Celtics.
This analysis categorizes all 30 NBA teams into distinct tiers, evaluating their projected cap space, identifying key free agents, suggesting potential player fits, and exploring strategic moves each franchise might make this summer.
Key: ETO = Early Termination Option | P = Player Option | R = Restricted | T = Team Option
Tier 1: Cap space team
Currently, the Brooklyn Nets are the only team projected to have significant cap space, exceeding $20 million this offseason. This contrasts sharply with last summer, when several teams like the Charlotte Hornets, Detroit Pistons, Oklahoma City Thunder, Orlando Magic, Philadelphia 76ers, San Antonio Spurs, and Utah Jazz utilized cap room to improve their rosters or take on salary via trade. The reduced number of teams with substantial spending power is partly due to the increase in rookie and veteran contract extensions signed over the past year.
NBA rules mandate that teams must spend at least 90% of the $154.6 million salary cap by the start of the regular season. For Brooklyn, with roughly $96 million in current salary, this means they need to reach $139.2 million by October 21st. Failure to meet this minimum spending floor would result in the difference being distributed among their own players. Additionally, Brooklyn would lose its share of the end-of-season cash distribution for non-taxpaying teams, estimated at $11.7 million. The amount below the floor also counts towards the Nets` team salary, effectively limiting their maximum cap space in the regular season to $15.5 million.
Teams that are over the cap have access to the $8.8 million room midlevel exception, which can be used to sign a free agent or acquire a player via trade after their cap space is fully utilized.
The free agents listed as `cap-space free agents` are those expected to command contracts exceeding $14 million. A `player` designation indicates a player can choose to opt into the final year of their current contract.
Brooklyn Nets
Projected room: $35 million
The Nets transition from a focus on drafting, having previously selected a record five first-round picks, to now having nearly $45 million available for free agency. Beyond prioritizing their restricted free agents Cam Thomas and Day`Ron Sharpe, Brooklyn is positioned as a potential destination for teams looking to shed salary, likely in exchange for draft assets.
Given the requirement to spend at least 90% of the salary cap by the start of the regular season, Brooklyn is expected to be active in free agency, even if they aren`t targeting the same level of marquee players as in past years (like Kyrie Irving or James Harden). With approximately $96 million in salary currently, the Nets need to add around $44 million in spending.
Team needs: Lead facilitator and overall depth
Free agents who fit: Josh Giddey, Julius Randle, Tyus Jones, Jonathan Kuminga, Thomas, D`Angelo Russell, Malik Beasley, Malcolm Brogdon, Caris LeVert, Precious Achiuwa, Davion Mitchell, Quentin Grimes, and Oscar Tshiebwe
Moves I would make: Utilize the available cap space by signing restricted free agent center Santi Aldama to a two-year, $40 million offer sheet. Additionally, re-sign Cam Thomas to a three-year, $54 million contract. Despite the addition of rookies Egor Demin and Nolan Traore, retaining Thomas should be a priority.
Under contract: Nicolas Claxton, Cameron Johnson, Terance Mann, Noah Clowney, Dariq Whitehead, Keon Johnson (T), Jalen Wilson (T), Tyrese Martin (T), Drew Timme (T), Egor Demin, Nolan Traore, Drake Powell, Ben Saraf and Danny Wolf.
Key free agents: Thomas (R), Sharpe (R)
Other free agents: Johnson, Wilson, Martin, Timme, Russell, De`Anthony Melton, Trendon Watford, Ziaire Williams
Tier 2: Cap space, but at a cost
The Detroit Pistons and Memphis Grizzlies could potentially join Brooklyn in the first tier of teams with cap space, but achieving this would require them to renounce the rights to their own free agents or execute trades. Memphis is highly likely to create cap space and subsequently renegotiate and extend Jaren Jackson Jr.`s contract.
Detroit Pistons
Projected room: TBD
Creating up to $17 million in cap space would have significant consequences for the Pistons` roster. If Detroit opts for cap space, they would need to renounce free agents Malik Beasley, Tim Hardaway Jr., and Dennis Schroder. Beasley could potentially be re-signed using the newly created room, and Detroit would still have the $8.8 million room exception available for another free agent signing. Alternatively, the Pistons could re-sign their own free agents and use the $14.1 million non-tax midlevel exception on Beasley or another player.
Last offseason, the Pistons focused on improving their perimeter shooting and defense. They finished the recent season ranked 10th in defensive efficiency, ninth in field goal percentage allowed, fifth in paint points allowed, and ninth in blocks. This was a notable improvement from the previous season, where they ranked in the 20s in these defensive categories, including 25th in efficiency.
Team needs: Perimeter shooting, reserve facilitator, and frontcourt depth
Free agents who fit: Beasley, Hardaway, Schroder, Ty Jerome, Chris Paul, Sam Merrill, Luke Kennard, Gary Trent Jr., Taurean Prince, Nickeil Alexander-Walker, Trey Lyles, Jake LaRavia, Garrison Mathews, Jeff Dowtin Jr.
One move I would make: Sign Malik Beasley to a three-year, $45 million contract. Beasley helped improve the Pistons from being the worst 3-point shooting team in 2023-24 to ranking 17th last season. The Pistons can sign Beasley using cap space and still retain access to the $8.8 million room midlevel exception.
Under contract: Cade Cunningham, Tobias Harris, Isaiah Stewart, Jaden Ivey, Ausar Thompson, Ronald Holland II, Simone Fontecchio, Jalen Duren, Marcus Sasser and Bobi Klintman
Key free agents: Hardaway, Schroder and Beasley
Other free agents: Lindy Waters III and Paul Reed
Memphis Grizzlies
Projected room: $5 million (Note: Memphis used more than 100% of the traded player exception to acquire Kentavious Caldwell-Pope and Cole Anthony. The Grizzlies will be hard capped at the first apron.)
Expect the Grizzlies` limited cap space to be primarily used for a renegotiation and extension of Jaren Jackson Jr.`s contract. Memphis is permitted to increase Jackson`s $23.4 million salary next season to $30.3 million and then extend him for an additional four years, worth up to $190 million. Reserves Cole Anthony and John Konchar are potential trade candidates if the Grizzlies need to create more cap space as part of the Jackson renegotiation. Jackson`s new contract will not impact the restricted free agency status of Santi Aldama or the team`s ability to use the $8.8 million room exception.
Team needs: A healthy Ja Morant, spacing combo big, and consistent rotational minutes.
Free agents who fit: Brook Lopez, Clint Capela, Larry Nance Jr., Al Horford, Luke Kornet, Kevon Looney, Mason Plumlee, Aldama, Branden Carlson, Micah Potter, Oscar Tshiebwe, Chris Boucher, Trey Lyles
One move I would make: Trade Cole Anthony and two future second-round picks to the Nets. The $12.5 million in salary savings this season would help pave the way for Memphis to renegotiate and extend Jackson`s contract.
Under contract: Morant, Jackson, Caldwell-Pope, Anthony, Brandon Clarke, Konchar, Zach Edey, Vince Williams Jr., Scotty Pippen Jr., Jay Huff, GG Jackson, Jaylen Wells and Cedric Coward
Key free agent: Aldama (R)
Other free agents: Luke Kennard, Marvin Bagley III and Lamar Stevens
Tier 3: The $14.1 million non-tax midlevel exception club
This is the largest group of teams, consisting of those with access to the full (or most of) $14.1 million non-tax midlevel exception and the $5.1 million biannual exception. A rule implemented last offseason also permits teams to use these exceptions to acquire a player via trade. It`s important to note that a team becomes hard-capped at the first apron ($195.5 million) if they utilize more than $5.7 million of their non-tax or biannual exception, or if they acquire a player in a sign-and-trade deal. Teams can still sign their own free agents using Bird, Early Bird, or Non-Bird exceptions without triggering the hard cap. The league also includes unlikely bonuses when calculating the first and second apron.
Atlanta Hawks
Below the tax: $31 million
Below the first apron: $39 million (Note: Atlanta will use more than 100% of the traded player exception to acquire Kristaps Porzingis. The Hawks will be hard capped at the first apron.)
The Hawks have been proactive this offseason, acquiring Kristaps Porzingis via trade, drafting Asa Newell in the first round, and securing a valuable 2026 first-round pick from Milwaukee or New Orleans. These moves provide some financial flexibility below the luxury tax and the first apron, allowing them to add backcourt depth. Atlanta possesses the $14.1 million non-tax midlevel exception and four trade exceptions, including significant ones valued at $25.2 million and $13.1 million.
Beyond potential free agency additions, the future of Trae Young and the rookie extension eligibility for Dyson Daniels are key storylines. Young is eligible to sign an extension up to four years and $229 million and could become a free agent next summer if an agreement is not reached.
Team needs: Backcourt help, frontcourt depth, and rim protector
Free agents who fit: Al Horford, Clint Capela, Kevon Looney, Precious Achiuwa, Nickeil Alexander-Walker, Ben Simmons, Chris Paul, Malcolm Brogdon, Ty Jerome, Sam Merrill, Dennis Schroder, Bruce Brown, Day`Ron Sharpe, Isaiah Jackson and Branden Carlson
Moves I would make: In two separate moves, use part of the non-tax midlevel exception to sign Ty Jerome to a three-year, $35 million contract. Then, use part of their $13.1 million trade exception to acquire Nickeil Alexander-Walker in a sign-and-trade deal from Minnesota, sending two future second-round picks as compensation.
Under contract: Young, Jalen Johnson, Porzingis, Onyeka Okongwu, Zaccharie Risacher, Georges Niang, Daniels, Kobe Bufkin, Vit Krejci, Mouhamed Gueye, Dominick Barlow (T) and Newell
Key free agent: Caris LeVert
Other free agents: Capela, Nance and Garrison Mathews
Charlotte Hornets
Below the tax: $22 million
Below the first apron: $30.1 million (Note: Charlotte is using more than 100% of the expanded traded player exemption to acquire Vasilije Micic from Phoenix. The Hornets are hard capped at the first apron.)
The Hornets are currently close to the salary cap but possess draft assets and financial flexibility that could allow them to target an All-Star caliber player if one becomes available. However, General Manager Jeff Peterson has emphasized that the Hornets are committed to a measured rebuild process and will not rush steps. “I will double down on how we`re not going to expedite anything,” Peterson stated to reporters after the season concluded.
The Hornets do have the $14.1 million non-tax midlevel exception and the $5.1 million biannual exception available for use in free agency or trade acquisitions.
Team needs: Perimeter shooting and facilitator
Free agents who fit: Ty Jerome, Malik Beasley, Tyus Jones, Chris Paul, Malcolm Brogdon, Sam Merrill, Dennis Schroder, Luke Kennard, Gary Trent Jr., Jake LaRavia, Tre Mann, Cam Thomas, Nickeil Alexander-Walker, Reece Beekman
One move I would make: Sign Chris Paul to a one-year, $14 million contract.
Under contract: LaMelo Ball, Miles Bridges, Jusuf Nurkic, Grant Williams, Josh Green, Brandon Miller, Tidjane Salaun, Micic, Nick Smith Jr., Josh Okogie, DaQuan Jeffries, Moussa Diabate, Kon Knueppel and Liam McNeeley
Key free agent: Mann (R)
Other free agents: Seth Curry and Taj Gibson
Chicago Bulls
Below the tax: $46 million
Below the first apron: $52 million (Note: Chicago is using more than the Expanded Traded Exception in the Isaac Okoro trade and is hard capped at the first apron)
The Bulls are in a good position to re-sign Josh Giddey and utilize their $14.1 million non-tax midlevel exception to improve the roster (they recently acquired Isaac Okoro, with Lonzo Ball departing). They also have the flexibility to take on salary in trades. Chicago holds a $17.2 million trade exception generated from the Zach LaVine deal.
The upcoming contract for Josh Giddey and over $60 million in veteran expiring contracts, including those of Nikola Vucevic and Coby White, are two major storylines to monitor this offseason.
Team needs: Frontcourt depth and defense-minded players
Free agents who fit: Giddey, Dorian Finney-Smith, Clint Capela, Larry Nance Jr., Kevon Looney, Braxton Key, Amir Coffey, Nickeil Alexander-Walker, Gary Payton II
Moves I would make: Sign free agent guards Josh Giddey and Tre Jones. Giddey signs a five-year, $120 million contract, while Jones signs a two-year, $18 million contract.
Under contract: Vucevic, Patrick Williams, Zach Collins, Kevin Huerter, White, Isaac Okoro, Jalen Smith, Ayo Dosunmu, Jevon Carter (P), Matas Buzelis, Dalen Terry, Julian Phillips and Noa Essengue
Key free agent: Giddey (R)
Other free agents: Jones and Talen Horton-Tucker
Houston Rockets
Below the tax: $1 million
Below the first apron: $9 million
Below the second apron: $21 million (Note: After Houston aggregated the contracts of Dillon Brooks and Jalen Green, they are now hard capped at the second apron.)
The Rockets initiated their free agency activity early with Steven Adams signing a three-year, $39 million extension. This was followed by the acquisition of All-Star Kevin Durant from Phoenix. Durant is eligible to sign a two-year, $122 million contract on July 6th. Houston also brought back Fred VanVleet, Aaron Holiday, Jeff Green, and Jae`Sean Tate.
Key tasks remaining for the Rockets include finding a replacement for Dillon Brooks and evaluating rookie extensions for Jabari Smith Jr. and Tari Eason. Both players are eligible for extensions until October 20th.
Team needs: Perimeter shooting
Free agents who fit: Sam Merrill, Luke Kennard, Jake LaRavia, Branden Carlson, Oscar Tshiebwe, Gary Trent Jr., Alec Burks, Bruce Brown, Tim Hardaway Jr.
Moves I would make: Extensions for Kevin Durant, Jabari Smith Jr., and Tari Eason.
Under contract: Alperen Sengun, VanVleet, Durant, Smith, Reed Sheppard, Amen Thompson, Eason, Cam Whitmore, Adams, Jock Landale, Holiday, Green, Tate and Nate Williams
Key free agents: None
New Orleans Pelicans
Below the tax: $6.1 million
Below the first apron: $7.3 million
Below the second apron: $19 million (Note: New Orleans aggregated the contracts of CJ McCollum and Kelly Olynyk. They are now hard capped at the second apron.)
The Pelicans have been aggressive this summer, acquiring Jordan Poole and Saddiq Bey in a trade with Washington and then selecting Jeremiah Fears and Derik Queen in the first round of the draft. However, moving up 10 spots to pick Queen cost them a valuable 2026 first-round selection.
A central question remains regarding the future of Zion Williamson and the team`s ability to build a competitive roster around him. Williamson has appeared in only 46% of regular-season games since being drafted first overall in 2019 and has never participated in the playoffs. His $39.4 million salary for the upcoming season is set to become fully guaranteed on July 15th; currently, $7.9 million is protected.
Team needs: Facilitator, rebounding, and perimeter defenders
Free agents who fit: Chris Paul, Gary Payton II, Braxton Key, Larry Nance Jr., Al Horford, Kevon Looney, Dru Smith, Reece Beekman, Malcolm Brogdon, Trey Lyles, Ty Jerome, Tre Jones, Dennis Schroder, Brook Lopez, Jake LaRavia, Luke Kennard, Taurean Prince, Luke Kornet
One move I would make: Guarantee the $39.5 million contract of Zion Williamson.
Under contract: Williamson, Dejounte Murray, Poole, Trey Murphy III, Herbert Jones, Bey, Jordan Hawkins, Jose Alvarado, Yves Missi, Karlo Matkovic, Antonio Reeves, Elfrid Payton (T), Brandon Boston (T), Fears and Queen
Key free agent: Bruce Brown
Other free agents: Boston and Payton
Oklahoma City Thunder
Below the tax: $4.5 million
Below the first apron: $12.1 million
The focus for the reigning NBA champions this offseason is on contract extensions for Shai Gilgeous-Alexander, Jalen Williams, and Chet Holmgren. These three players could sign new deals collectively worth close to $800 million. The Thunder also need to manage their roster size, as they currently have 16 players under contract, one more than the maximum allowed at the start of the season.
Team needs: Reserve bigs and lead guard depth
Free agents who fit: Clint Capela, Larry Nance Jr., Al Horford, Kevon Looney, Precious Achiuwa, Mason Plumlee, Trey Lyles, Oscar Tshiebwe, Day`Ron Sharpe, Isaiah Jackson, De`Anthony Melton, Tyus Jones, Malcolm Brogdon
Moves I would make: In addition to extending Gilgeous-Alexander, Holmgren, and Williams, trade Ousmane Dieng to the Hawks for two future second-round picks. This move would create a necessary roster spot.
Under contract: Gilgeous-Alexander, Isaiah Hartenstein, Alex Caruso, Luguentz Dort, Holmgren, Isaiah Joe, Aaron Wiggins, Kenrich Williams, Dieng, Jalen Williams, Cason Wallace, Nikola Topic, Dillon Jones, Ajay Mitchell (T), Jaylin Williams (T) and Thomas Sorber
Key free agents: Mitchell and Jaylin Williams
Portland Trail Blazers
Below the tax: $7.9 million
Below the first apron: $14.3 million (Note: The Trail Blazers intend to use more than 100% of the expanded traded player exemption. They are now hard capped at the first apron.)
Due to the expiring contracts of Anfernee Simons, Matisse Thybulle, Robert Williams III, and Deandre Ayton, Portland was considered a wild card entering the offseason. Simons was eventually traded for Celtics guard Jrue Holiday, a move that positions Portland to potentially compete for at least a play-in spot.
Two internal contract situations to watch are potential extensions for Shaedon Sharpe and Toumani Camara. Camara was named to the All-Defensive second team last season.
Team needs: 3-and-D forwards and wings
Free agents who fit: De`Anthony Melton, Javonte Green, Gary Payton II, Amir Coffey, Gary Trent Jr., Bruce Brown, Lamar Stevens, Delon Wright, Riley Minix, Jabari Walker, Ziaire Williams, Taurean Prince, Trey Lyles
One move I would make: Sign Toumani Camara to a four-year, $87 million extension.
Under contract: Ayton, Holiday, Jerami Grant, Deni Avdija, Williams III, Thybulle (P), Scoot Henderson, Donovan Clingan, Sharpe, Kris Murray, Duop Reath, Camara, Rayan Rupert (T) and Yang Hansen
Key free agent: Walker (R)
Other free agents: Rupert and Dalano Banton
Sacramento Kings
Below the tax: $18 million
Below the first apron: $23 million
Sacramento is one of the few NBA teams in need of a starting point guard. While they lack the cap space to sign one outright in free agency, they possess contracts they could potentially trade, including those of DeMar DeRozan and Malik Monk.
The Kings have two maximum contract players, Zach LaVine and Domantas Sabonis, under contract but maintain flexibility to absorb salary in trades or utilize their $14.1 million exception in free agency. They also hold five trade exceptions of various sizes: $1.9 million, $4.7 million, $5.9 million, $6.3 million, and $16.9 million.
Team needs: Facilitator, shooting, and defense-minded players
Free agents who fit: De`Anthony Melton, Tyus Jones, Chris Paul, Tre Jones, Sam Merrill, Dennis Schroder, Gary Payton II, Braxton Key, Amir Coffey, Ben Simmons, Bruce Brown, Nickeil Alexander-Walker, Taurean Prince, Jake LaRavia, Jae`Sean Tate, Lamar Stevens, Delon Wright, Keaton Wallace, Reece Beekman
One move I would make: Use a portion of the non-tax midlevel exception to sign Gary Payton II to a two-year, $15 million contract.
Under contract: LaVine, Sabonis, DeRozan, Monk, Keegan Murray, Jonas Valanciunas, Devin Carter, Terence Davis (T), Keon Ellis (T), Isaac Jones (T) and Nique Clifford
Key free agent: Ellis
Other free agents: Jones, Davis, Trey Lyles, Doug McDermott, Jake LaRavia, Jae Crowder and Markelle Fultz
San Antonio Spurs
Below the tax: $27 million
Below the first apron: $32 million
The Spurs meet the criteria often cited for acquiring an All-Star caliber player: draft capital, controllable and sizable contracts, and a foundation for a playoff-contending roster. Excluding Victor Wembanyama and De`Aaron Fox, San Antonio has seven players with salaries ranging from $4.7 million to $27 million.
Financially, Victor Wembanyama`s third year on his rookie contract positions San Antonio favorably to absorb salary without facing significant financial restrictions. In addition to potential roster additions, a key focus this offseason is a contract extension for De`Aaron Fox. The guard is eligible starting August 3rd to sign an extension up to four years and $229 million.
Team needs: Backcourt depth, shooting, and reserve big
Free agents who fit: De`Anthony Melton, Dennis Schroder, Gary Payton II, Tyus Jones, Malik Beasley, Ty Jerome, Tyus Jones, Malcolm Brogdon, Caris LeVert, Chris Paul, Larry Nance Jr., Al Horford, Amir Coffey, Luke Kennard, Gary Trent Jr., Jake LaRavia, Clint Capela, D`Angelo Russell, Quentin Grimes, Santi Aldama, Isaiah Jackson, Kevon Looney
One move I would make: Trade Keldon Johnson, Blake Wesley, a 2029 first-round pick (top-four protected), the 2032 right to swap first-round picks (top-two protected), and two future second-round picks to Brooklyn for Cameron Johnson.
Under contract: Fox, Devin Vassell, Johnson, Harrison Barnes, Wembanyama, Stephon Castle, Jeremy Sochan, Malaki Branham, Wesley, Julian Champagnie, Dylan Harper and Carter Bryant
Key free agent: Chris Paul
Other free agents: Charles Bassey, Jordan McLaughlin, Bismack Biyombo and Sandro Mamukelashvili
Utah Jazz
Below the tax: $22 million
Below the first apron: $30 million
The Jazz recently hired former Celtics executive Austin Ainge to oversee basketball operations. During his introductory news conference, Ainge reiterated that the Jazz do not intend to intentionally bottom out in pursuit of a top pick in the next draft.
Achieving this goal involves significant player development from their recent draft picks or leveraging their larger expiring contracts (John Collins, Jordan Clarkson, and Collin Sexton) and draft assets to acquire players who can contribute immediately to winning. The Jazz also need to address their roster balance. They added Ace Bailey and Walter Clayton Jr. to a roster that already returned 15 players from last season. However, four of those returning players—KJ Martin, Svi Mykhailiuk, Jaden Springer, and Johnny Juzang—have no salary protection.
Team needs: Defense-minded talent across the board, veteran habit demonstrators
Free agents who fit: Jonathan Kuminga, De`Anthony Melton, Chris Paul, Malcolm Brogdon, Larry Nance Jr., Luke Kornet, Russell Westbrook, Dennis Schroder, Gary Payton II, Paul Reed, Kevon Looney, Braxton Key, Mason Plumlee, Jae`Sean Tate, James Johnson, Delon Wright, Kyle Lowry, Keaton Wallace, Reece Beekman, Kessler Edwards, Isaiah Jackson, Branden Carlson
One move I would make: Sign Walker Kessler to a five-year, $115 million extension.
Under contract: Lauri Markkanen, Collins (P), Sexton, Clarkson, Taylor Hendricks, Cody Williams, Kessler, Keyonte George, Kyle Filipowski, Brice Sensabaugh, Isaiah Collier, Martin, Juzang, Springer, Mykhailiuk, Bailey and Clayton
Key free agent: None
Washington Wizards
Below the tax: $13 million
Below the first apron: $18 million (Note: The Wizards intend to use more than 100% of the expanded traded player exemption to acquire CJ McCollum and Kelly Olynyk. They are hard capped at the first apron.)
Will the Wizards continue their recent strategy of accepting contracts that extend beyond the current season if attached to draft picks? Washington possesses nearly $100 million in expiring contracts, including Khris Middleton, CJ McCollum, Kelly Olynyk, Marcus Smart, and Richaun Holmes.
Team needs: Internal development, fundamentally sound guards, and a big who can defend.
Free agents who fit: Ty Jerome, Tyus Jones, Chris Paul, Clint Capela, Larry Nance Jr., Al Horford, Kevon Looney, Paul Reed, Dennis Schroder, Tre Jones, Gary Payton II, Braxton Key, Mason Plumlee, Davion Mitchell, Oscar Tshiebwe, Day`Ron Sharpe, Reece Beekman, Keaton Wallace, Isaiah Jackson, Branden Carlson
One move I would make: Sign veteran Kevon Looney to a two-year, $10 million contract.
Under contract: Middleton, McCollum, Smart, Corey Kispert, Alex Sarr, Bilal Coulibaly, Olynyk, Bub Carrington, AJ Johnson, Kyshawn George, Holmes, Anthony Gill, Justin Champagnie, Colby Jones, Tre Johnson and Will Riley
Key free agent: Malcolm Brogdon
Tier 4: Watching their own free agents
For the teams in this tier, their salary cap flexibility largely depends on the outcomes with their own free agents. For instance, the Golden State Warriors could potentially have access to the $14.1 million tax midlevel exception, but only if restricted free agent Jonathan Kuminga does not sign a new contract with them or another team that they match. Similarly, the Indiana Pacers would become a luxury tax team if their starting center, Myles Turner, re-signs.
As a reminder, the $195.5 million first apron is triggered if a team uses more than $5.7 million of its midlevel exception, the $5.1 million biannual exception, or acquires a player through a sign-and-trade. The first apron is also triggered by using more than 100% of a traded player exception. Teams can sign their own free agents using Bird, Early Bird, or Non-Bird exceptions without triggering the hard cap. Unlikely bonuses count towards both the first and second apron calculations.
Golden State Warriors
Below the tax: $17 million
Below the first apron: $25 million
Below the second apron: $39 million
The Warriors have a significant portion of their payroll concentrated in their top players, with Stephen Curry, Jimmy Butler III, and Draymond Green accounting for 82% of their projected salary next season. These financial constraints make Jonathan Kuminga`s situation particularly important this offseason.
Golden State is expected to extend him a $7.9 million qualifying offer, making him a restricted free agent. What follows could be a waiting period. With the Brooklyn Nets being the only team currently projected to offer a starting salary of $20 million or more (which Golden State would have the right to match), the most likely outcome could involve both the team and Kuminga exploring a sign-and-trade scenario. The decision regarding Kuminga will directly influence Golden State`s flexibility in addressing their need for a starting center.
One move I would make: Trade Moses Moody to the Knicks for Mitchell Robinson.
Team needs: Rim protector, frontcourt depth, athleticism, and shooting
Free agents who fit: Kuminga, Malik Beasley, Ty Jerome, Malcolm Brogdon, Tyus Jones, Brook Lopez, Kevon Looney, Luke Kornet, Luke Travers, Sam Merrill, Gary Payton II, Gary Trent Jr., Luke Kennard, Taurean Prince, Nickeil Alexander-Walker, Bruce Brown, Trendon Watford, Alec Burks, Keaton Wallace, Quentin Grimes, Davion Mitchell, Jalen Bridges
Under contract: Curry, Butler, Green, Buddy Hield, Moody, Brandin Podziemski, Trayce Jackson-Davis, Gui Santos (T) and Quinten Post (T)
Key free agent: Kuminga
Other free agents: Payton, Looney, Braxton Key, Kevin Knox II and Pat Spencer
Indiana Pacers
Below the tax: $20 million
Below the first apron: $27 million
Below the second apron: $39 million
The positive news for the Eastern Conference finalists is that they have 11 players under contract for the upcoming season. The challenging news is that All-Star Tyrese Haliburton is currently sidelined indefinitely due to a torn Achilles tendon.
The primary focus this offseason is a new contract for center Myles Turner, but his signing could come at a cost. The Pacers have avoided paying the luxury tax since 2006, and a new deal for Turner could impact the futures of breakout playoff performers Bennedict Mathurin and Aaron Nesmith. Both players are eligible for extensions this offseason, and Mathurin would be a restricted free agent next summer if an extension is not agreed upon.
Team needs: Frontcourt and wing depth
Free agents who fit: Turner, Kevon Looney, Ben Simmons, Mason Plumlee, Sandro Mamukelashvili, Jeremiah Robinson-Earl, Branden Carlson, Isaiah Jackson, Micah Potter, Jabari Walker, PJ Hall, Al Horford, Larry Nance Jr.
One move I would make: Sign Myles Turner to a three-year, $75 million contract.
Under contract: Haliburton, Pascal Siakam, Andrew Nembhard, Obi Toppin, Nesmith, T.J. McConnell, Mathurin, Jarace Walker, Ben Sheppard, Johnny Furphy, Tony Bradley (T)
Key free agent: Turner
Other free agents: Bradley, Thomas Bryant, James Johnson and Jackson (R)
LA Clippers
Below the tax: $12 million
Below the first apron: $20 million
Below the second apron: $32 million
James Harden`s next contract will significantly influence the Clippers` flexibility this summer and in future seasons. If Harden opts into his $36.3 million contract for next season or signs a new deal with a comparable first-year salary, the Clippers will have access to their non-tax midlevel exception and maintain flexibility for aggressive trade discussions. (The Clippers do not have the $5.1 million biannual exception available because they signed Nicolas Batum last July.)
Team needs: Reserve lead guard and big
Free agents who fit: Tyus Jones, Chris Paul, Malcolm Brogdon, Larry Nance Jr., Al Horford, Dennis Schroder, Kevon Looney, Gary Payton II, Clint Capela, Dru Smith, Collin Gillespie
Moves I would make: Split the $14.1 million non-tax midlevel exception to sign Chris Paul and Clint Capela.
Under contract: Kawhi Leonard, James Harden (P), Norman Powell, Ivica Zubac, Bogdan Bogdanovic, Derrick Jones Jr., Kris Dunn, Nicolas Batum (P), Kobe Brown, Cam Christie, Drew Eubanks, Jordan Miller and Yanic Konan Niederhauser
Key free agents: Harden and Batum
Other free agents: Amir Coffey, Patty Mills and Ben Simmons
Los Angeles Lakers
Above the tax: $4 million
Below the first apron: $4 million
Below the second apron: $16 million (Note: After the Lakers sent cash to Chicago during the draft, they are now hard capped at the second apron.)
Beyond the acquisition of Luka Doncic, the Lakers were active at the trade deadline in an effort to strengthen their center position. Expect a similar proactive approach this offseason.
Although the Lakers lack the cap space to sign a free agent big man like Myles Turner, Los Angeles possesses valuable assets for trades, including a 2031 or 2032 first-round pick, five years of pick swaps, former first-round pick Dalton Knecht, and over $70 million in expiring contracts (Austin Reaves, Dorian Finney-Smith, Rui Hachimura, Maxi Kleber, and Gabe Vincent). These assets can be used in potential deals.
The Lakers will continue to balance two distinct timelines: a “win-now” strategy centered around LeBron James and building a sustainable team for the future anchored by Luka Doncic.
Doncic is eligible starting August 2nd to sign an extension up to four years and $229 million. The Lakers could potentially have most of their $14.1 million non-tax midlevel exception available, but only if Dorian Finney-Smith declines his player option and does not re-sign. If Finney-Smith does not return, the Lakers would be $20 million below the first apron.
Team needs: Rim protector, frontcourt, and wing depth
Free agents who fit: Clint Capela, Al Horford, Larry Nance Jr., Kevon Looney, Brook Lopez, Mason Plumlee, Day`Ron Sharpe, Isaiah Jackson, Branden Carlson, Micah Potter, Dorian Finney-Smith, Javonte Green, Jabari Walker,
Moves I would make: Enhance depth at center, starting with trading Gabe Vincent, Jordan Goodwin, and a second-round pick to Portland for Robert Williams III. Additionally, sign Brook Lopez to a one-year, $5.7 million contract.
Under contract: James (P), Doncic, Finney-Smith (P), Hachimura, Reaves, Kleber, Vincent, Jarred Vanderbilt, Knecht, Bronny James, Shake Milton and Goodwin (T)
Key free agent: Jaxson Hayes
Other free agents: Goodwin, Markieff Morris and Alex Len
Miami Heat
Below the tax: $5.8 million
Below the first apron: $11 million
Below the second apron: $23 million
Patience will be a factor in how aggressively Miami decides to build its roster around Bam Adebayo, Tyler Herro, and Kel`el Ware—whether they push to compete now or wait until the 2026 offseason.
The Heat will have the flexibility to pursue free agents in the 2026 offseason while also being active in trade discussions using the expiring contracts of Terry Rozier and Duncan Robinson. Miami is comfortably below the second apron, which allows them to aggregate contracts in trades. However, if the goal is to sign restricted free agent Davion Mitchell, then prioritizing taking back less salary in trades becomes important.
Team needs: Backcourt depth and a reserve big
Free agents who fit: Mitchell, Tyus Jones, Malcolm Brogdon, De`Anthony Melton, Chris Paul, Dennis Schroder, Gary Payton II, Bruce Brown, Gary Trent Jr., Kevon Looney, Luke Kornet, Al Horford, Precious Achiuwa, Mason Plumlee, Chris Boucher
Moves I would make: Sign Davion Mitchell to a three-year, $25 million contract. Have Duncan Robinson decline his early termination option and then work out a sign-and-trade deal with the Hawks. Miami would receive a future second-round pick and save nearly $20 million in salary. This would also grant the Heat access to the non-tax midlevel exception.
Under contract: Adebayo, Herro, Andrew Wiggins, Kyle Anderson, Haywood Highsmith, Nikola Jovic, Ware, Kevin Love, Rozier, Jaime Jaquez Jr., Robinson (ETO), Keshad Johnson, Pelle Larsson, and Kasparas Jakucionis
Key free agent: Mitchell (R)
Other free agents: Alec Burks
Milwaukee Bucks
Below the tax: $23 million
Below the first apron: $29 million
Below the second apron: $41 million
As with every offseason, the Milwaukee Bucks are focused on continuing to build a championship-caliber roster around Giannis Antetokounmpo. Addressing how to complement Antetokounmpo, especially in light of Damian Lillard`s Achilles injury, will involve a combination of free agency signings and trades. As a result of the Khris Middleton-Kyle Kuzma swap, the Bucks can use the $14.1 million non-tax midlevel exception to potentially sign a free agent like Gary Trent Jr. or find a temporary replacement for Lillard.
The futures of Brook Lopez and Bobby Portis also need to be resolved. Lopez was one of only five players last season with at least 100 three-pointers made and 100 blocks, and he has started every game he has played since joining Milwaukee in 2018. Bobby Portis` $13.4 million player option is below the average player salary. It is unlikely that the Bucks can afford to retain both players, utilize their non-tax midlevel exception, and also add salary through trades simultaneously.
Team needs: Lead guards and bigs
Free agents who fit: Trent, Myles Turner, Lopez, Portis, Ty Jerome, Tyus Jones, Chris Paul, Malcolm Brogdon, Larry Nance Jr., Al Horford, Luke Kornet, Dennis Schroder, Gary Payton II, Bruce Brown, Nickeil Alexander-Walker, Trey Lyles, Chris Boucher, Trendon Watford, Lindy Waters III, Alec Burks, Jeremiah Robinson-Earl, Santi Aldama, Tre Mann, Reece Beekman, Micah Potter, Branden Carlson
Moves I would make: Acquire Duncan Robinson from Miami in a sign-and-trade deal for Pat Connaughton, with Robinson`s first-year salary being $13 million. Then, sign Dennis Schroder to a two-year, $14 million contract. Sign Bobby Portis to a two-year, $32 million extension (with Portis opting-in as part of the agreement). Finally, sign Luke Kornet to a two-year, $14 million contract.
Under contract: Antetokounmpo, Lillard, Kuzma, Portis (P), Connaughton, (P), Kevin Porter Jr., Tyler Smith, AJ Green, Chris Livingston and Andre Jackson Jr.
Key free agents: Portis, Lopez and Trent
Other free agents: Connaughton, Porter, Taurean Prince, Ryan Rollins (R) and Jericho Sims
Minnesota Timberwolves
Above the tax: $15 million
Above the first apron: $10 million
Below the second apron: $2 million
The Timberwolves are entering the offseason facing significant roster decisions, this time under the guidance of their new ownership group led by Marc Lore and Alex Rodriguez. While Minnesota has 14 players under contract for the upcoming season, key starter Julius Randle and valuable reserve Nickeil Alexander-Walker could become free agents (Randle holds a player option).
The financial commitment required to retain both players could potentially push the Timberwolves` payroll over $250 million, placing them in the second apron again.
Team needs: A reserve big and wing shooting
Free agents who fit: Randle, Alexander-Walker, Larry Nance Jr., Al Horford, Luke Kennard, Gary Trent Jr., Jake LaRavia, Trey Alexander, Riley Minix, Luke Kornet, Sam Merrill, Mason Plumlee, Trey Lyles, Taurean Prince, Amir Coffey
One move I would make: Have Julius Randle opt into his contract and then sign him to a two-year, $60 million extension.
Under contract: Anthony Edwards, Rudy Gobert, Randle (P), Jaden McDaniels, Naz Reid, Donte DiVincenzo, Mike Conley, Rob Dillingham, Terrence Shannon Jr., Jaylen Clark, Luka Garza (T), Leonard Miller, Josh Minott (T) and Joan Beringer
Key free agents: Randle and Alexander-Walker
Other free agents: Garza, Minott and Joe Ingles
Orlando Magic
Above the tax: $5.5 million
Below the first apron: $1.5 million
Below the second apron: $13 million (Note: The Magic aggregated the contracts of Kentavious Caldwell-Pope and Cole Anthony in the Desmond Bane trade. As a result, they are hard capped at the second apron.)
Before trading for Desmond Bane, the Magic had primarily built their roster through free agent signings and draft picks, with Wendell Carter Jr. and Gary Harris being the only players acquired via trade. The “all-in” move to acquire Bane signals that Orlando believes there is an opportunity in the Eastern Conference not just to contend for a play-in spot, but potentially a top-four seed. The Bane trade projects Orlando to pay the luxury tax for the first time since the 2010-11 season.
The offseason now centers on a potential rookie maximum extension for Paolo Banchero. The forward is eligible to sign a five-year, $247 million extension. If signed, Orlando would have four players—Banchero, Bane, Franz Wagner, and Jalen Suggs—earning more than $35 million next season.
Team needs: A reserve lead guard and wing shooting
Free agents who fit: Tyus Jones, Malcolm Brogdon, Chris Paul, Sam Merrill, Dennis Schroder, Gary Trent Jr., Landry Shamet, Jake LaRavia, Garrison Mathews, Tim Hardaway Jr., Trey Alexander, Mason Jones, Cam Thomas, Keion Brooks
One move I would make: Sign Tyus Jones to a two-year, $12 million contract.
Under contract: Wagner, Suggs, Bane, Banchero, Jonathan Isaac, Carter, Goga Bitadze, Anthony Black, Jett Howard, Tristan da Silva, Moritz Wagner (T), Caleb Houstan (T), Jase Richardson
Key free agents: Wagner and Houstan
Other free agents: Harris and Cory Joseph
Philadelphia 76ers
Below the tax: $1.8 million Below the first apron: $9.8 million
Below the second apron: $21.7 million
Following a year where they signed Paul George and were informally declared winners of the 2024 offseason, Philadelphia`s summer is expected to be less dramatic this time around. The key priorities include managing Joel Embiid`s health and re-signing Quentin Grimes and Guerschon Yabusele.
Quentin Grimes is a restricted free agent, and Philadelphia has the ability to exceed the salary cap to re-sign him. However, if the 76ers use more than $5.7 million of their non-tax midlevel exception, they will trigger the hard cap.
