With the NBA draft complete, teams across the league are shifting focus to free agency and the trade landscape.
But how many franchises have significant salary cap space, and which could maneuver to create it? Which teams up against the first or second apron face the harsh roster-building restrictions?
We’re breaking down all 30 teams into seven tiers -- from cap space kings to franchises fighting to avoid the second apron -- examining the available cap space, key free agents and best potential fits for every franchise this summer.
Jump to a team:
ATL | BOS | BKN | CHA | CHI | CLE
DAL | DEN | DET | GS | HOU | IND
LAC | LAL | MEM | MIA | MIL | MIN
NO | NYK | OKC | ORL | PHI | PHX
POR | SAC | SA | TOR | UTAH | WAS
More: Latest free agency, trade buzz
Tier 1: Cap space teams
For now, only the Brooklyn Nets and Chicago Bulls project to generate more than $30 million in cap space this offseason. In the 2025 offseason, just three teams (the Nets, Memphis Grizzlies and Milwaukee Bucks) used cap room to improve their rosters or acquire salary in a trade.
That decrease in spending power is tied to the steady increase in rookie and veteran extensions signed under the 2023 CBA.
Teams are required to spend at least 90% of the $165 million salary cap by the first day of the regular season. That would mean a team such as Chicago, which has $111 million in salary, must spend $148.5 million by the last day of the offseason. If the Bulls fail to reach the minimum requirement by opening night, the difference will be distributed to their own players.
Chicago would also forfeit receiving the end-of-season cash distribution to non-tax-paying teams, which is projected to be $8 million. The difference in the amount below the floor is also applied to the Bulls’ team salary. That means the maximum cap space they would have in the regular season is $14.3 million. A team over the cap will also have the $9.4 million midlevel exception to use either to sign a player or acquire a player in a trade once cap space is exhausted.
The cap space free agents below indicate players who project to sign for a contract for more than $15 million. A “player” designation means the player can opt in to a final year of their current deal.
Brooklyn Nets
Projected room: TBD
The trade to acquire Julius Randle does not eliminate Brooklyn from having significant cap space this summer. Before finalizing the Randle trade July 6, Brooklyn can sign players (or trade for) with cap space. The Nets could have $37 million in room. Once the Nets exceed the salary cap, they would then acquire Randle with the expanded traded player exception of Nic Claxton.
Last offseason, Brooklyn elected to use room to acquire Michael Porter Jr., Terance Mann and Haywood Highsmith. The trade with Denver was significant as Porter averaged a career high in points and was in the running for his first nomination to the All-Star Game. The Nets also gained a valuable 2032 unprotected first from the Nuggets. With the Rockets having control of their 2027 first, do the Nets trade for contracts but with draft picks attached, similar to last summer, or do they add in free agency?
Team needs: Development, consistency and winning habits. The Nets finished the season 27th in defense but showed a blueprint for success during a 15-game stretch in late November and December, during which the Nets ranked second in defense and allowed the fewest 3s, offensive rebounds and points.
Free agents who fit: Keon Ellis, Dean Wade, Peyton Watson, Tobias Harris, Isaiah Crawford, John Collins, Rui Hachimura, Luke Kennard, Simone Fontecchio, Jaylen Clark, Mohamed Diawara, Jett Howard, Quentin Grimes, Kelly Oubre Jr.
Key free agents: Day’Ron Sharpe (Team)
Other free agents: Ochai Agbaji (Restricted), Josh Minott (Team), Ziaire Williams (Team), Jalen Wilson (Restricted), Chaney Johnson (Restricted), E.J. Liddell (Restricted), Malachi Smith (Team), Tyson Etienne (Restricted)
Chicago Bulls
Projected room: $31 million
The Bulls addressed a void at starting center, trading for the Nets’ Nic Claxton. With Claxton under contract for the next two seasons, Chicago projects to have $31 million in cap space this summer. (That projection assumes that Chicago renounces every free agent on its roster.)
To reach the minimum salary requirement by the first day of the regular season, Chicago would need to spend at least $16.5 million in free agency or a trade. The last time Chicago had available cap space was in the 2019 offseason.
Team needs: Shooting and frontcourt depth
Free agents who fit: Jalen Duren, Robert Williams III, Walker Kessler, Anfernee Simons, Keon Ellis, Larry Nance Jr., Moussa Cisse, Peyton Watson, Gary Payton II, Kristaps Porzingis, Bennedict Mathurin, Luke Kennard, Simone Fontecchio, Mitchell Robinson, Landry Shamet, Branden Carlson, Moritz Wagner, Quentin Grimes, Andre Drummond, Kelly Oubre Jr., Kelly Olynyk
Key free agents: Anfernee Simons, Collin Sexton
Other free agents: Leonard Miller (Team), Nick Richards, Guerschon Yabusele, Zach Collins, Mac McClung (Restricted), Yuki Kawamura (Restricted), Lachlan Olbrich (Restricted), Mouhamadou Gueye (Team)
Tier 2: Cap space, but at a cost
The Lakers could join Brooklyn and Chicago in the first tier but at the cost of renouncing their own free agents, including possibly LeBron James. The Hawks would need to decline the team option of Jonathan Kuminga to create room, and Memphis would need to renounce its $29 million trade exception.
Atlanta Hawks
Below the tax: $8 million
Below the first apron: $16 million
Atlanta is in a strong financial position, with no players making more than $31 million next season. That financial flexibility is based on Jonathan Kuminga’s $24.3 million team option and Buddy Hield’s partially guaranteed contract. The Hawks have until June 29 to exercise Kuminga’s option, while Hield’s contract becomes guaranteed June 25. (Just $3 million of his $9.7 million salary is currently protected.)
After the recent $21 million extension for CJ McCollum and trade for Aaron Wiggins, Atlanta is still well below the first apron to use the $15 million non-tax midlevel exception but only if the option for Kuminga is not exercised. Once the Wiggins trade is finalized, Atlanta will become hard-capped at the first apron. The Hawks have four other trade exceptions: $11 million, $6.7 million, $4.5 million and $2.3 million.
Team needs: Frontcourt size. In the playoffs, Atlanta’s defense ranked second to last in second-chance points and paint points allowed. It finished 18th in blocked shots during the regular season. After the Trae Young trade, the Hawks could also use a primary ball handler who can create and pressure the rim.
Free agents who fit: Gabe Vincent, Collin Sexton, Keon Ellis, Dean Wade, Brandon Williams, Bruce Brown, John Collins, Ayo Dosunmu, Landry Shamet, Quentin Grimes, Quinten Post, Mitchell Robinson, Robert Williams III
Key free agents: Jonathan Kuminga (Team)
Other free agents: Gabe Vincent, Jock Landale, Mouhamed Gueye (Team), Keaton Wallace (Restricted), Tony Bradley, Christian Koloko (Restricted)
Detroit Pistons
Projected room: TBD
The Pistons have $136 million in salary but will likely stay over the cap because of Jalen Duren’s $19.5 million free agent hold. Detroit could create up to $21 million in room but at the expense of renouncing every free agent except for Duren, waiving Duncan Robinson and trading Caris LeVert.
The Pistons have an $8.7 million trade exception that expires July 6, and if they remain over the cap, they will add the $15 million non-tax midlevel exception. Detroit will likely use the Isaiah Stewart $15 million trade exception to acquire Isaiah Joe.
Team needs: A secondary scorer, shooting and a stretch-4.
Free agents who fit: Jalen Duren, Tobias Harris, Javonte Green, Peyton Watson, Anfernee Simons, Keon Ellis, Bruce Brown, Tari Eason, Josh Okogie, John Collins, Rui Hachimura, Harrison Barnes, Dean Wade
Key free agents: Jalen Duren (Restricted), Tobias Harris, Daniss Jenkins (Team)
Other free agents: Javonte Green, Wendell Moore Jr., Kevin Huerter, Tolu Smith (Team)
LA Clippers
Projected room: TBD
The Clippers could act as a cap space team but at the expense of Bogdan Bogdanovic, Brook Lopez and Batum. They would also need to renounce the free agent hold of Bennedict Mathurin. In the scenario the team options are not exercised and Mathurin is let go, LA could have up to $30 million in cap space.
If the roster stays intact, the Clippers will be $30 million below the luxury tax. They will have flexibility to stay under the tax, sign Mathurin and have the $15 million non-tax midlevel exception available.
Team needs: Frontcourt help and a playmaker to back up Darius Garland.
Free agents who fit: John Collins, Robert Williams III, Peyton Watson, Gabe Vincent, Nikola Vucevic, Coby White, Collin Sexton, Brandon Williams, Bruce Brown, Larry Nance Jr., Dean Wade, Moussa Cisse, Kristaps Porzingis, Pat Spencer, Luke Kennard, Branden Carlson, Jevon Carter, Andre Drummond, Caleb Love, Tari Eason, Javonte Green, Rui Hachimura, Kelly Oubre Jr.
Key free agents: Benedict Mathurin (Restricted), John Collins, Brook Lopez (Team)
Other free agents: Jordan Miller (Team), Kobe Sanders (Team), Nicolas Batum (Team), Bradley Beal (Player), Bogdan Bogdanovic (Team), TyTy Washington Jr., Norchad Omier (Restricted)
Los Angeles Lakers
Projected room: TBD
There is a balancing act in how the Lakers could have cap space and also retain their free agents, including LeBron James.
In the scenario that James signs for a contract in the $25 million range, Los Angeles would then have up to $25 million in room to sign or trade for a player. They would then be allowed to exceed the cap to sign Reaves to his agreed four-year, $184 million contract. The Lakers would also have the $9.4 million room midlevel exception available. The maximum room the Lakers could have is $47 million but at the expense of James, Rui Hachimura and Luke Kennard.
The Lakers could bypass using cap space and retain their free agents. This scenario gives the Lakers better roster optionality in a trade, while also having their $15 million non-tax midlevel exception available.
Team needs: A two-way starting center, wing, shooting and bench depth.
Free agents who fit: LeBron James, Jalen Duren, Quentin Grimes, Landry Shamet, Mitchell Robinson, Peyton Watson, Nikola Vucevic, Ochai Agbaji, Anfernee Simons, Keon Ellis, Larry Nance Jr., Dean Wade, Tim Hardaway Jr., Kristaps Porzingis, Tari Eason, Josh Okogie, John Collins, Benedict Mathurin, Rui Hachimura, Luke Kennard, Jaylen Clark, Kelly Oubre Jr., Robert Williams III, Harrison Barnes, Walker Kessler
Key free agents: LeBron James, Rui Hachimura, Marcus Smart (Player), Luke Kennard
Other free agents: Deandre Ayton (Player), Jaxson Hayes, Maxi Kleber, Chris Manon (Restricted), Nick Smith Jr. (Team), Drew Timme (Restricted)
Memphis Grizzlies
Below the tax: $24 million
The Grizzlies have $147 million in guaranteed contracts but are still likely to act as an over- the-cap team for multiple reasons.
Memphis has a $28.9 million trade exception that was created in the Jaren Jackson Jr. trade with Utah. The exception counts against the cap, unless it is renounced.
There are five players -- Jaylen Wells, Olivier-Maxence Prosper, GG Jackson, Scotty Pippen Jr. and Taj Gibson -- with team options or partially guaranteed contracts.
The Grizzlies’ two first-round picks in June could equal $13 million in combined salary.
Team needs: Zach Edey’s health issues -- the 7-3 center played just 11 games this season because of left ankle issues -- should push the Grizzlies to target a reserve big who can rebound and protect the rim. There is also an internal need for improved shooting from Wells and Cedric Coward.
Free agents: GG Jackson (Team), Rayan Rupert (Restricted), Olivier-Maxence Prosper (Team)
Tier 3: The $15 million non-tax midlevel exception club
The largest tier of teams includes those with access to the full (or most of) $15 million non-tax midlevel exception and $5.5 million biannual exception. A rule introduced last offseason also allows teams to use their exceptions to acquire a player in a trade. A team is hard-capped at the first apron if it uses more than $6.1 million of its non-tax or biannual exception.
Charlotte Hornets
Below the tax: $53 million
In less than two hours, the Hornets traded former All-Star LaMelo Ball to Minnesota and re-signed guard Coby White.
The two transactions have Charlotte in a position to add via free agency or in a trade. Besides having access to the $15 million non-tax midlevel exception, the Hornets have a $40.7 million trade exception, the largest in NBA history.
Team needs: Backcourt depth
Free agents who fit: Brandon Williams, Anfernee Simons, Pat Spencer, Gabe Vincent, Collin Sexton, Luke Kennard, Tim Hardaway Jr., De’Anthony Melton, Keon Ellis, Quentin Grimes, Norman Powell
Key free agents: None
Other free agents: Pat Connaughton (Team), Xavier Tillman Sr., Antonio Reeves (Restricted)
Dallas Mavericks
Below the tax: $39 million
Dallas would have faced a bleak financial future if the franchise had kept Anthony Davis on the roster. The Mavericks are no longer projected as an apron team in 2026-27 and have flexibility to add in the offseason.
Though the Mavericks are not a cap space team, they can use the non-tax and biannual exceptions and can take back salary in a trade. Including both first-round picks in June, Dallas is a projected $39 million below the tax and $45 million under the first apron. Dallas also has a $20.8 million trade exception.
Team needs: Kyrie Irving’s return next season will address the lack of ballhandling, while Dallas could use a stretch big for lineup versatility.
Free agents who fit: Keon Ellis, Collin Sexton, Thomas Bryant, Dean Wade, Bruce Brown, Javonte Green, Gary Payton II, John Collins, Mohamed Diawara, Spencer Jones, Quentin Grimes, Amir Coffey, Robert Williams III, Precious Achiuwa, Kelly Olynyk, Quinten Post, E.J. Liddell, Jock Landale
Key free agents: Brandon Williams, Ryan Nembhard (Team)
Other free agents: Dwight Powell, Moussa Cisse (Restricted), Marvin Bagley III, Khris Middleton
Milwaukee Bucks
Below the tax: $38.5 million
The Bucks’ cap ledger is balanced, with no player other than Tyler Herro earning more than $30 million. As a result, Milwaukee enters the offseason well below the luxury tax and first apron.
The Bucks will have to balance their roster, with 17 players under contract, including first-round picks Brayden Burries and Nate Ament. Besides the ability to use the $15 million tax midlevel and $5.5 million biannual exception, Milwaukee has a $25.5 million exception that was created in the Giannis Antetokounmpo trade. The exception can be used to acquire a player in a trade.
Team needs: Balancing the roster. The trade with Miami and two first-round picks have left Milwaukee with 17 players under contract.
Free agents who fit: Gabe Vincent, Keaton Wallace, Keon Ellis, Brandon Williams, Tyus Jones, Gary Payton II, Pat Spencer, Bones Hyland, Jevon Carter, Caleb Love, David Jones Garcia
Key free agents: Gary Trent Jr., Ousmane Dieng (Restricted)
Other free agents: Thanasis Antetokounmpo, Andre Jackson Jr. (Team), Alex Antetokounmpo (Restricted)
Portland Trail Blazers
Below the tax: $31 million
Extensions for Shaedon Sharpe and Toumani Camara resulted in Portland going from a possible cap space team to having $171 million in salary. The Trail Blazers are, however, in good enough shape financially to bring back free agents Robert Williams III and Matisse Thybulle or use their $15 million non-tax midlevel exception on a free agent. The Trail Blazers return All-Star Deni Avdija, a mixture of veterans led by Jrue Holiday and Jerami Grant and a solid young nucleus that includes Scoot Henderson, Sharpe, Camara, Donovan Clingan, Kris Murray and Yang Hansen. The roster will also get a boost with Damian Lillard returning from a left Achilles injury next season. Portland will enter the offseason $31 million below the luxury tax and 12 players under contract.
Team needs: Shooting. The Trail Blazers ranked 28th in 3-point percentage this season, and the woes carried over to the postseason. At the time of its exit, Portland had the fourth-worst mark from 3-point range in the playoffs.
Free agents who fit: Robert Williams III, Ochai Agbaji, Keon Ellis, Larry Nance Jr., Dean Wade, Bruce Brown, Javonte Green, Josh Okogie, Isaiah Crawford, John Collins, Bennedict Mathurin, Jaxson Hayes, Chris Manon, Kyle Anderson, Jeremy Sochan, Amir Coffey
Key free agents: Matisse Thybulle, Robert Williams III
Other free agents: Caleb Love (Restricted), Blake Wesley
San Antonio Spurs
Below the tax: $41 million
With no player other than De’Aaron Fox earning more than $30 million per season, San Antonio is $41 million below the luxury tax and well under both aprons. San Antonio has the flexibility to sign Julian Champagnie to a new contract and have access to the $15 million non-tax midlevel and $5.5 million biannual exception. Last offseason, the Spurs used part of the non-tax midlevel to sign Luke Kornet.
Team needs: Besides shooting development from Stephon Castle, Dylan Harper and Carter Bryant, a reserve stretch 4 who complements Victor Wembanyama. There is also a need for more backcourt depth.
Free agents who fit: Rui Hachimura, Harrison Barnes, Kristaps Porzingis, Nikola Vucevic, Ochai Agbaji, Anfernee Simons, Keon Ellis, Dean Wade, Tim Hardaway Jr., Javonte Green, Tari Eason, John Collins, Luke Kennard, Landry Shamet, Quentin Grimes
Key free agents: Harrison Barnes, Julian Champagnie (Team)
Other free agents: Bismack Biyombo, Jordan McLaughlin, Kelly Olynyk, Lindy Waters III, Harrison Ingram (Restricted), David Jones Garcia (Restricted), Mason Plumlee
Utah Jazz
Below the tax: $46 million
Before the 2025-26 regular season began, Utah was one of the few teams projected to have cap space.
That changed in early February, when Jaren Jackson Jr. was acquired from the Memphis Grizzlies. The Jazz still have flexibility but are likely to act as a team over the cap because of Walker Kessler’s $14.6 million free agent hold and an upcoming lottery pick. The Jazz do not have the $5.5 million biannual exception available because it was used last season.
Team needs: Adding Jackson and signing Kessler will help a defense that ranked last and 27th in second-chance points allowed. There is also a need for perimeter bench scoring; Jazz reserves ranked 24th in 3-point shooting this season.
Free agents who fit: Walker Kessler, Mitchell Robinson, Trey Jemison III, Nikola Vucevic, Jock Landale, Thomas Bryant, Moussa Cisse, Hunter Dickinson, Josh Oduro, Ariel Hukporti, Andre Drummond, Robert Williams III, Rui Hachimura, Harrison Barnes, Kelly Oubre Jr.
Key free agents: Walker Kessler (Restricted)
Other free agents: Kevin Love, Jusuf Nurkic, Elijah Harkless (Restricted), Oscar Tshiebwe (Restricted), Bez Mbeng (Team), Hayden Gray (Team)
Washington Wizards
Below the tax: $14 million (Factors in a new contract for Trae Young)
Before trading for Trae Young and Anthony Davis, Washington was projected to have nearly $80 million in cap space. With the two former All-NBA players combining to earn $107 million next season, Washington no longer has the spending power it once had.
However, with eight players on first-round rookie contracts, Washington is well-positioned below the luxury to add if needed in free agency. From two separate trades, Washington has a $28.8 million and $13.4 million trade exception.
Team needs: Young and Davis will improve an offense and defense that each finished 29th in the NBA. But the league’s second-youngest roster will need to build winning habits. This past season, the Wizards won consecutive games only four times, with no win streaks of three or more games. They started the season 1-15 and finished it by losing 24 of their final 25.
Free agents who fit: Mitchell Robinson, Robert Williams III, Andre Drummond, Moussa Cisse, Gabe Vincent, Brandon Williams, Tyus Jones, Kristaps Porzingis, Mike Conley, Jevon Carter
Key free agents: None
Other free agents: Anthony Gill, Jamir Watkins (Team), Sharife Cooper (Restricted)
Tier 4: Watching their own free agents
In terms of salary cap flexibility, the following teams are at the fate of their free agents. For example, the 76ers could have the $15 million tax midlevel exception but only if free agent Kelly Oubre Jr. or Quentin Grimes is not signed. And the Knicks are a second-apron team if Mitchell Robinson and Landry Shamet are re-signed. Note: The $209 million first apron gets triggered if a team uses more than $6.1 million of its midlevel exception, the $5.5 million biannual exception, or by acquiring a player in a sign-and-trade.
The first apron is also triggered if they use more than 100% of the traded player exception. A team can sign its own free agents using the Bird, early Bird or non-Bird exceptions and not trigger the hard cap. The league counts unlikely bonuses toward the first and second apron.
Boston Celtics
Below the tax: $10 million
Below the first apron: $18 million
Below the second apron: $31 million
Though the Celtics are not pressed to cut significant salaries, as they were last offseason, there are financial decisions with their own players, starting with Neemias Queta’s $2.7 million team option.
If the option is exercised, Boston would then be allowed to extend Queta for up to four seasons and remain below the luxury tax and first apron. By declining the option, Boston would lose valuable financial flexibility.
Queta started a career-high 75 games, averaging 10.2 points and 8.4 rebounds with a team-best 17 double-doubles. The Celtics were 12.7 points per 100 possessions better when he was on the court.
Team needs: Frontcourt and playmaking depth, plus shooting development from former draft picks Hugo Gonzalez, Baylor Scheierman and Jordan Walsh.
Free agents who fit: Robert Williams III, Nick Richards, Larry Nance Jr., Dean Wade, Kyle Anderson, Trey Jemison, Branden Carlson, Andre Drummond, Drew Eubanks, Caleb Love, Chris Manon, Pat Spencer, Gabe Vincent
Key free agent: Nikola Vucevic, Neemias Queta (Team)
Other free agents: Jordan Walsh (Team), Ron Harper Jr. (Team), Max Shulga (Team), Dalano Banton (Team), John Tonje (Restricted), Amari Williams (Team)
Cleveland Cavaliers
Above the tax: $21 million
Above the first apron: $13.2 million
Above the second apron: $211,000
James Harden plays a major role in the direction of the Cavaliers’ offseason. Harden signed a two-year, $81.5 million contract last offseason with the Clippers. The deal has a player option that allows both sides to negotiate a longer contract at possibly less money if he were to become a free agent.
By signing for less, Cleveland avoids becoming a second-apron team again. If Harden opts into the $42.3 million, the salary will become guaranteed on July 11. There is $13.3 million protected for next season.
Team needs: Lineup consistency and depth. Because of injuries and roster turnover, coach Kenny Atkinson used 41 different starting lineups in the regular season. Because of their finances, the Cavaliers could be looking at veteran minimum options for their bench if they lose Ellis and Wade.
Free agents who fit: James Harden, Zach Collins, Nick Richards, Keon Ellis, Dean Wade, Marvin Bagley III, Moussa Cisse, Javonte Green, Charles Bassey, Josh Okogie, Jaxson Hayes, Chris Manon, Simone Fontecchio, Jaylen Clark, Kyle Anderson, Ariel Hukporti, Trey Jemison, Branden Carlson, Andre Drummond
Key free agents: James Harden (Player), Dean Wade
Other free agents: Keon Ellis, Thomas Bryant, Larry Nance Jr., Craig Porter Jr. (Team), Olivier Sarr (Restricted)
Golden State Warriors
Below the tax: $13.5 million
Below the first apron: $20.9 million
Below the second apron: $33.9 million
For the first time since the 2019-20 season, Golden State is projected to be under the luxury tax. Including the player options of Draymond Green, Al Horford, De’Anthony Melton and their 2026 first-round pick, the Warriors are $14.5 million under the tax, $22 million below the first apron and $35 million under the second apron.
Because of the first apron hard cap, it is unlikely Golden State can use the $15 million non-tax midlevel exception and still have flexibility to remain under once the roster is filled out.
Team needs: Besides adding youth and athleticism, Golden State needs to identify a reserve point guard who can consistently penetrate the paint. Other needs include frontcourt help and a 3-and-D wing.
Free agents who fit: LeBron James, Kristaps Porzingis, De’Anthony Melton, Gabe Vincent, Keaton Wallace, Nikola Vucevic, Gary Payton II, Coby White, Collin Sexton, Anfernee Simons, Keon Ellis, Dean Wade, Moussa Cisse, Tim Hardaway Jr., Bruce Brown, Javonte Green, Tari Eason, Josh Okogie, Isaiah Crawford, John Collins, Luke Kennard, Mitchell Robinson, Moritz Wagner, Andre Drummond, Kelly Oubre Jr., Robert Williams, Harrison Barnes, Quinten Post
Key free agent: Draymond Green (Player), Kristaps Porzingis, De’Anthony Melton (Player), Al Horford (Player)
Other free agents: Gary Payton II, Pat Spencer (Restricted), Quinten Post (Restricted), Seth Curry, Nate Williams Jr. (Restricted), Charles Bassey
Houston Rockets
Below the tax: $14 million
Below the first apron: $21.5 million
Below the second apron: $34.5 million
A new contract for restricted free agent Tari Eason will put Houston over the luxury tax and close to the first apron. The Rockets will likely exceed the first apron once their roster is filled out in free agency. Eason will get tendered a one-year, $8 million qualifying offer by June 29, and that will then allow Houston to match any offer sheet this summer.
Team needs: A healthy Fred VanVleet is a starting point, but other needs include shooting development from Reed Sheppard, Amen Thompson and Alperen Sengun. The Rockets could also use a 3-and-D wing -- unless Dorian Finney-Smith can fill that role -- and a reserve point guard who can facilitate and play off the ball. Houston has five open roster spots.
Free agents who fit: Tari Eason, Josh Okogie, Gabe Vincent, Keaton Wallace, Ochai Agbaji, Antonio Reeves, Collin Sexton, Anfernee Simons, Keon Ellis, Dean Wade, Brandon Williams, Tim Hardaway Jr., Javonte Green, Pat Spencer, Simone Fontecchio, Mike Conley, Amir Coffey, Harrison Barnes, Lindy Waters III
Key free agent: Tari Eason (Restricted)
Other free agents: Fred VanVleet (Player), Jeff Green, Aaron Holiday, Josh Okogie, Jae’sean Tate, Isaiah Crawford (Restricted), JD Davison (Team)
Philadelphia 76ers
Below the tax: $14.5 million
Below the first apron: $22.5 million
Below the second apron: $35.5 million
Though the backcourt of Tyrese Maxey and VJ Edgecombe is set for the future, there are decisions throughout the roster. The 76ers will start by addressing the free agency of Kelly Oubre Jr., Quentin Grimes and Andre Drummond.
Can the 76ers afford to sign two out of the three and justify exceeding the first apron for a roster that finished outside of the top six in the East? Philadelphia has access to the $15 million non-tax midlevel exception but only if none of its key free agents are signed.
Team needs: Perimeter shooting, 3-and-D wing and frontcourt depth.
Free agents who fit: Quentin Grimes, Kelly Oubre Jr., Pat Spencer, Jose Alvarado, Jock Landale, Brandon Williams, Caleb Love, Bones Hyland, David Jones Garcia, Jett Howard, Cam Thomas, Keon Ellis, Tim Hardaway Jr., Javonte Green, Gary Payton II, Josh Okogie, Spencer Jones, Georges Niang, Marvin Bagley III, Precious Achiuwa, Mohamed Diawara, John Collins
Key free agent: Quentin Grimes, Kelly Oubre Jr.
Other free agents: Andre Drummond, Trendon Watford (Team), Dominick Barlow (Team), Kyle Lowry, MarJon Beauchamp, Tyrese Martin (Restricted), Dalen Terry (Team)
Toronto Raptors
Below the tax: $3.8 million
Below the first apron: $5.2 million
Below the second apron: $18.2 million
The Raptors are another team impacted by unlikely bonuses counting against the apron. The $6.5 million in bonuses (Jakob Poeltl, RJ Barrett, Immanuel Quickley) could play a role in Toronto losing reserve Sandro Mamukelashvili. If Mamukelashvili declines his $2.8 million player option, Toronto would likely need to dip into its $15 million non-tax midlevel exception. However, if it uses more than $6 million, Toronto hard-caps itself at the first apron. In 80 games this season, he averaged career highs in points (11.1), field goal percentage (52.3%) and rebounds (4.5). In 13 starts, Mamukelashvili averaged 15.9 points.
Team needs: Shooting. The Raptors ranked 21st in 3-point percentage during the regular season. Scottie Barnes, RJ Barrett, Gradey Dick and Jamal Shead all shot below 32.1%.
Free agents who fit: Sandro Mamukelashvili, Gabe Vincent, Rui Hachimura, Harrison Barnes, Luke Kennard, Tim Hardaway Jr., Keon Ellis, Khris Middleton, Tyus Jones, Tobias Harris, Isaiah Crawford, Simone Fontecchio, Jordan McLaughlin, Amir Coffey, Landry Shamet, Antonio Reeves
Key free agent: Sandro Mamukelashvili
Other free agents: Trayce Jackson-Davis, Garrett Temple, Jamal Shead (Team), Jonathan Mogbo (Team), A.J. Lawson, Alijah Martin (Restricted), Tyreke Key (Restricted), Chucky Hepburn (Restricted)
Tier 5: Stuck in the middle
The Pacers and Pelicans are not over the luxury tax nor hard-capped at either apron. However, signing a free agent for more than $6.1 million not only puts them over the luxury tax but also hard-caps them at the first apron.
Indiana Pacers
Below the tax: $247,000
Below the first apron: $9 million
Below the second apron: $22 million
Five months before free agency began, Indiana traded for Ivica Zubac in February. Though the center will strengthen the roster, especially with Tyrese Haliburton returning, Indiana is financially limited in what it can add in free agency. The Pacers are right at the luxury tax and have not paid a penalty since 2004-05.
Team needs: With Zubac, the Pacers’ starting lineup is set. The bench, however, could use a combo guard and consistent perimeter scoring.
Free agents who fit: Keon Ellis, Bruce Brown, Javonte Green, Gary Payton II, Josh Okogie, Nate Williams Jr., Isaiah Crawford, Chris Manon, Jaylen Clark, Jeremy Sochan, Dalen Terry, Amir Coffey, Matisse Thybulle, David Jones Garcia, Elijah Harkless
Key free agents: None
Other free agents: Micah Potter (Team), Kobe Brown, Jalen Slawson (Restricted)
New Orleans Pelicans
Below the tax: $12.7 million
Below the first apron: $14 million
Below the second apron: $27 million
The Pelicans continue to be impacted by the nearly $7 million in unlikely bonuses that count toward the apron. Though New Orleans is $4.7 million below the luxury tax, the team is only $5.7 million under the first apron.
To create financial flexibility, the Pelicans can decline the $8 million team option for Kevon Looney. If the option is declined, New Orleans could use part of its $15 million non-tax midlevel and stay under the luxury tax.
Team needs: Rebounding continues to be an issue for the Pelicans. After finishing 29th in defensive rebound percentage in 2024-25, New Orleans finished 28th this past season. The Pelicans allowed the third-most second-chance points in the league.
Free agents who fit: Moussa Cisse, Branden Carlson, Trey Jemison III, Andre Drummond, Robert Williams III
Key free agents: None
Other free agents: DeAndre Jordan, Kevon Looney, Trey Alexander (Restricted), Hunter Dickinson (Restricted), Josh Oduro (Restricted)
Tier 6: The first-apron teams
A team is not allowed to use the below roster resources if its salary post-transaction exceeds the first apron, which is at $209 million: use more than 100% of the traded player exception, use a preexisting trade exception, use more than $6.1 million of the non-tax midlevel, or acquire a player in a sign-and-trade.
Miami Heat
Below the tax: $12.5 million
Below the first apron: $20.5 million
Even with Giannis Antetokounmpo, the Heat front office has plenty of work.
The four-players-for-one swap not only opens roster spots but also heightens the importance of retaining free agent Norman Powell. But now, Miami keeping Powell comes with financial restrictions. Because the Heat used more than 100% of the traded player exception in the Antetokounmpo deal, they are hard-capped at the first apron. Miami is a projected $18 million below, with up to five roster spots to fill.
For the Heat to stay under the threshold, it is unlikely Miami will fill out the remainder of its roster with players signed to the veteran minimum and still have room to keep Powell. To create additional flexibility, Andrew Wiggins could decline his $30.2 million player option and sign for less but with an additional season tacked on. For example, a new two-year, $45 million contract for Wiggins would put Miami $38 million under the first apron.
Besides prioritizing Powell, there is a need to replenish the bench with perimeter shooting after losing Herro, a career 38.2% shooter from 3.
Team needs: Playmaker, perimeter shooting and three-and-D wing
Free agents who fit: Ochai Agbaji, Antonio Reeves, Anfernee Simons, Collin Sexton, Keon Ellis, Moussa Cisse, Tim Hardaway Jr., Kevin Huerter, Pat Spencer, John Collins, Mitchell Robinson, Branden Carlson, Andre Drummond, Caleb Love, Simone Fontecchio
Key free agent: Norman Powell, Andrew Wiggins (Player), Pelle Larsson (Team)
Other free agents: Keshad Johnson (Restricted), Simone Fontecchio, Vladislav Goldin (Restricted), Trevor Keels (Restricted), Jahmir Young
Minnesota Timberwolves
Above the tax: $9.3 million
Above the first apron: $3 million
Below the second apron: $10 million
The Timberwolves upgraded their backcourt by adding LaMelo Ball and re-signing Ayo Dosunmu. The improvement however, comes at a cost to their frontcourt. Finding frontcourt depth after trading Julius Randle and Naz Reid requires Minnesota to explore trades and fill its roster spots with veteran minimum free agents. The only two bigs on the roster are Rudy Gobert and Joan Beringer.
Team needs: Frontcourt depth and perimeter shooting
Free agents who fit: Larry Nance Jr., Marvin Bagley III, Maxi Kleber, Kelly Olynyk, Moritz Wagner,
Key free agent: None
Other free agents: Mike Conley, Bones Hyland, Jaylen Clark, Joe Ingles, Julian Phillips (Team), Kyle Anderson, Enrique Freeman (Restricted)
New York Knicks
Above the tax: $7 million
Below the first apron: $916,000
Below the second apron: $14 million
For now, New York is the lone team in the first-apron tier. That could change if the Knicks go into the second apron to retain free agents Landry Shamet and Mitchell Robinson. Knicks owner James Dolan was adamant that staying under the second apron is a priority.
“If we could bring back the whole team, exactly as is, why wouldn’t you?” Dolan said Wednesday on WFAN’s “The Carton Show.” “There’s certain things in the NBA that you’d have to be suicidal to do. One of them is the second apron. Cannot go into the second apron.”
New York would be left with the $2.5 million veteran minimum exception if Shamet and Robinson are not signed.
Team needs: A reserve combo big, interior rim protector and bench shooting.
Free agents who fit: Mitchell Robinson, Landry Shamet, Ariel Hukporti, Trey Jemison III, Keon Ellis, Moussa Cisse, Bruce Brown, Javonte Green
Key free agent: Mitchell Robinson, Landry Shamet
Other free agents: Jordan Clarkson, Ariel Hukporti (Restricted), Trey Jemison III (Restricted), Dillon Jones, Kevin McCullar Jr. (Restricted)
Orlando Magic
Above the tax: $1.5 million
Below the first apron: $5.0 million
Below the second apron: $18.0 million
Note: Factors in waiving and stretching Jonathan Isaac. The Magic should be a second-apron team, considering they are $3.7 million below the threshold and still have two roster spots to fill. But Orlando has the flexibility to waive the $8 million owed to Isaac and then stretch it over seven seasons.
If Isaac is a financial casualty, then Orlando is $5.1 million below the first and $18.1 million under the second apron. The Magic would have the $6.1 million tax midlevel exception to use.
Team needs: Shooting off the bench, an athletic big who can rebound and a reserve playmaking guard. The Magic reserves ranked 26th in 3-point percentage this past season.
Free agents who fit: Gabe Vincent, Harrison Barnes, Larry Nance Jr., Pat Spencer, Aaron Holiday, Andre Drummond, Jock Landale, Drew Eubanks
Key free agents: Moritz Wagner
Other free agents: Jett Howard, Jevon Carter, Jamal Cain (Team), Colin Castleton (Restricted)
Phoenix Suns
Above the tax: $2 million
Below the first apron: $5.4 million
Below the second apron: $18 million
The roster that was once top-heavy with contracts no longer exists, as 12 out of the 15 players under contract next season have a salary between $2.3 million and $20 million. The Suns enter the offseason with $190 million in salary on the roster. However, because of the Bradley Beal buyout, Phoenix is over the luxury tax and first apron.
The Suns agreed to terms with Collin Gillespie, Jordan Goodwin and Mark Williams before June 30. The three players will earn a combined $28 million next season.
Team needs: Development from Rasheer Fleming
Free agents who fit: None
Key free agent: None
Other free agents: Amir Coffey, Jamaree Bouyea (Team), Koby Brea (Restricted), Isaiah Livers (Restricted)
Sacramento Kings
Above the tax: $16 million
Above the first apron: $13 million
Above the second apron: $49K
Over the luxury tax and both aprons is not an enviable position, especially if you finish in the bottom of the standings, as Sacramento did this past season. The Kings can get under both but at the cost of waiving their second-leading scorer, DeMar DeRozan.
DeRozan’s $25.7 million salary for next season is guaranteed for $10 million. If DeRozan is waived and stretched ($3.3 million over three seasons), Sacramento is $12.5 million below the luxury tax and well under both aprons.
Team needs: A starting point guard and defensive identity. The Kings finished the season in the bottom of every defensive category, including transition points allowed, second-chance points, 3-point percentage and points per game allowed.
Free agents who fit: Keaton Wallace, Gabe Vincent, Ochai Agbaji, Chaney Johnson, Javonte Green, Gary Payton II, Josh Okogie, Jaylen Clark, Jevon Carter, Quentin Grimes, Matisse Thybulle, David Jones Garcia, Elijah Harkless
Key free agent: None
Other free agents: Zach LaVine (Player), Drew Eubanks, Doug McDermott, Daeqwon Plowden (Restricted), Patrick Baldwin Jr., Killian Hayes (Team)
Tier 7: The second-apron teams
The $222 million second apron restricts teams in how they can add to their roster outside of re-signing their free agents, using the veteran minimum exception and signing draft picks. In short: Second-apron teams better like their current rosters.
A second-apron team will have its 2034 first-round pick frozen if they finish the regular season above $222 million in salary. Unlikely bonuses for players, even if not reached, count toward the apron.
Denver Nuggets
Above the tax: $15 million
Above the first apron: $12 million
Below the second apron: $900,000
Is ownership willing to pay a significant tax penalty and become a second-apron team for the first time under the current CBA? Though Nikola Jokic, Jamal Murray and the rest of the starting five are under contract, Denver is pressed financially to retain Peyton Watson, Tim Hardaway Jr. and Bruce Brown in free agency.
Including its late first-round pick in June, Denver is right at the second apron. The Nuggets have some financial flexibility with Jonas Valanciunas’ partially guaranteed contract. If the veteran center is waived by July 8, Denver is responsible for $2 million of his $10 million salary. The Nuggets could also stretch the protected salary over three seasons.
Team needs: Depth. Denver will need to replace Hardaway’s outside shooting and Brown’s versatility if both sign elsewhere this summer. The Nuggets also need a reserve point guard, a rim-protecting reserve big and continued development of former draft picks Julian Strawther and DaRon Holmes II.
Free agents who fit: Peyton Watson, Spencer Jones, Keaton Wallace, Jalen Wilson, Antonio Reaves, Guerschon Yabusele, Keon Ellis, Bruce Brown, Tim Hardaway Jr., Javonte Green, Josh Okogie, Jae’Sean Tate, Jalen Slawson, Simone Fontecchio, Jaylen Clark, Jett Howard, Amir Coffey, Caleb Love, Lindy Waters III, Gabe Vincent
Under contract: Nikola Jokic ($59M, Player 2027), Jamal Murray ($50.1M, UFA 2029), Cameron Johnson ($23.1M, UFA 2026), Aaron Gordon ($33.7M, Player 2028), Valanciunas ($10M, UFA 2027), Zeke Nnaji ($7.5M, Player 2027), Christian Braun ($21.6M, UFA 2030), DaRon Holmes II ($3.4M, RFA 2028), Jalen Pickett ($2.4M, Team 2026)
Key free agent: Peyton Watson (Restricted), Tim Hardaway Jr., Spencer Jones (Restricted)
Other free agents: Bruce Brown, Jalen Pickett (Team), Tyus Jones, David Roddy, Curtis Jones (Restricted)
Oklahoma City Thunder
Above the tax: $33 million
Above the first apron: $26.5 million
Above the second apron: $13.4 million
The Thunder’s payroll is set to become unprecedented.
The former champions are not only projected to be a second-apron team, thanks largely in part to the rookie max extensions of Jalen Williams and Chet Holmgren, but are likely to face a luxury tax payment of more than $100 million.
The good news is that the roster, which won 132 games the past two seasons, has 14 players under contract and recently drafted Aday Mara and Bennett Stirtz in the first round.
The Thunder shaved off nearly $200 million in tax penalties with the Aaron Wiggins and Isaiah Joe trades.
Team needs: An offseason of development from former first-round picks Nikola Topic and Thomas Sorber. Topic missed the 2024-25 season because of a left knee injury and most of his season while recovering from testicular cancer. He has played in 10 games since Feb. 12. Sorber tore his right ACL in September and did not play this season.
Free agents who fit: Andre Drummond, Nick Richards, Moussa Cisse, Trey Jemison, Branden Carlson, Jock Landale
Key free agents: Lu Dort (Team)
Other free agents: Kenrich Williams (Team), Brooks Barnhizer (Restricted), Branden Carlson (Restricted)
