2023-24 NBA salary cap - Cap space, Luxury tax apron, Second apron for upcoming season explored

Outside of the COVID season, the NBA salary cap has seen a yearly gradual spike. This has opened the door for players to sign record-breaking contracts and give front offices more flexibility to build title-winning rosters.

Heading into the 2023-24 season, the NBA salary cap is set at $134 million. Team are able to go over this number, but will face different kinds of punishments under the new Collective Barganing Agreement.

One salary cap number to watch is the luxury tax, which is set at $162 million next season. If teams go over this mark, they will forced to pay more for going over the tax.

Under the new CBA, there is also a level above the luxury tax called the second apron. Next season, it will be $179.5 million, 17 million dollars over the luxury tax. Similar to the luxury tax, teams will face severe penalties if they go over the second apron.

This season, the LA Clippers ($192.9 million) and Golden State Warriors ($192.3 million) had the highest payrolls in the NBA. LA also has the highest for the 2023-24 season, but that could change depending on what happens with Draymond Green and Golden State. The All-Star forward recently declined his player option and is set to become an unrestricted free agent.

What are the penalties for going over the NBA salary cap?

As teams go deeper past the NBA salary cap, the penalties they face get much steeper. For starters, any team in the tax will have to pay a luxury tax bill. Also, with the new CBA, teams in the tax have a limited number of veteran minimum deals they can offer.

The steepest penalties come to teams that are beyond the second apron. Their draft picks will be impacted, and the front office will not be able to sign players to the mid-level exception in free agency. On top of all this, teams in the second apron will also have a tougher time salary-matching when it comes to making trades.

Arguably the biggest penalty of the second apron is not being able to sign players in the buyout market. In year's past, teams have been able to make key additions in this manner in the weeks leading up to the playoffs. The most recent example of this is the Miami Heat signing Kevin Love after he was bought out by the Cleveland Cavaliers.