The NBA’s second apron rules are already reshaping how teams manage their payrolls, and one front office executive believes the impact will be most severe on smaller-market franchises.
Speaking to Steve Bulpett of Heavy.com, the executive said, “You’ll see that it’s going to kill some of the smaller market teams that go for it.”
The restrictions, introduced under the league’s new collective bargaining agreement, place steep penalties on teams exceeding the second apron, a threshold well above the salary cap. Penalties include limited access to trades, restrictions on signing buyout players, and constraints on roster flexibility.
The executive pointed to the Milwaukee Bucks as a prime example. After winning the 2021 championship, Milwaukee faced escalating costs to keep its core together. According to the source, the financial pressure led to moves such as trading Khris Middleton and restructuring contracts.
In addition, the Bucks used the waive-and-stretch provision on Damian Lillard’s contract to create space for a deal with Myles Turner. The maneuver helped them avoid further tax penalties but highlighted how even title contenders are being forced into tough financial decisions.
For smaller-market teams, the problem is compounded. Unlike larger markets with deep revenue streams, these organizations often cannot absorb luxury tax bills year after year without cutting back. That dynamic could discourage teams from making aggressive win-now moves.
The second apron was designed to promote competitive balance across the league, but executives fear it may have the opposite effect. Instead of helping mid-tier and small-market teams stay competitive, it could push them toward dismantling rosters earlier than intended.
Large-market teams like the Los Angeles Lakers, Golden State Warriors, and New York Knicks generate enough income from local TV, sponsorships, and arenas to withstand the tax burden. Smaller organizations such as Milwaukee, Indiana, or Memphis may find themselves forced into premature roster resets.
