What Is Second NBA Apron? How Does Second Apron Work?

The NBA introduced the first and second apron thresholds to create a more level playing field among all 30 teams, ultimately impacting their basketball odds of winning games.

The playoffs become even more thrilling when each game between the teams with the best NBA championship odds is close and competitive.

With that in mind, what is the second NBA apron, and how does it work? Let’s find out.

What Is the Second Apron in the NBA?

The second apron in the NBA refers to any team exceeding a threshold of $188.931 million in player salaries for the 2024-25 season.

That number is subject to change depending on the salary cap each season.

How Does the Second Apron Work in Basketball?

How the second apron works in basketball is setting strict penalties for teams who choose to field an utterly expensive payroll. It was introduced in the 2024 offseason.

The Golden State Warriors had to pay a huge luxury tax bill during the 2010s when they had Stephen Curry, Kevin Durant, Klay Thompson, Draymond Green, and Andre Iguodala on their books.

Still, they weren’t subject to the penalties of today’s second apron rules.

Teams are free to surpass the second apron so long as they sign their players through Bird Rights, the biannual exception, and the mid-level exception, but their ability to sign and/or trade players becomes extremely complicated under these new set of rules.

What Is the First Apron in the NBA?

The first apron in the NBA refers to any team exceeding a threshold of $178.132 million in player salaries for the 2024-25 season.

NBA First Apron Penalties

NBA first apron penalties include teams not being able to sign bought-out players who made more than the non-taxpayer MLE ($12.8 million) before being waived, taking on more salary than they send out in trades, and using trade exceptions created the season before.

First-apron teams must match salaries within 110% of the outgoing cash, compared to 125% for teams that aren’t above the first apron. 

They can only sign and trade players if it gets them below the first apron.

NBA Second Apron Penalties

NBA second apron penalties feature all of the first apron penalties plus teams not being able to use the Taxpayer MLE ($5.2 million), aggregate players in trades, sign-and-trade their players to acquire others, and send out cash in any trades.

Second-apron teams can only trade multiple players in a single deal if the trade brings them below the second apron.

Additionally, teams above the second apron will have their first-round draft pick seven years into the future frozen, preventing it from being included in any trades until they drop below the second apron.

If a team remains above the second apron for at least two of the next four seasons, the frozen draft pick will automatically move to the end of the first round, regardless of the team’s regular-season performance.