With the NBA draft concluded, the league’s teams turn their attention to free agency and potential trades.
How many teams have cap space and which ones could generate it? Which teams are near the first or second “apron” (salary cap) and face the restrictive limitations in roster construction that this entails? Who could follow in the footsteps of the Boston Celtics and make trades to reduce their luxury tax bill?
We analyze the 30 franchises, dividing them into different tiers, examining the available salary cap space, key free agents, ideal fits, and potential moves for each team this summer.
Keys: ETO = Early Termination Option | P = Player Option | R = Restricted | T = Team Option
Level 1: Teams with Salary Space
Currently, only the Brooklyn Nets are projected to generate more than $20 million in salary cap space this offseason. For comparison, last offseason, the Charlotte Hornets, Detroit Pistons, Oklahoma City Thunder, Orlando Magic, Philadelphia 76ers, San Antonio Spurs, and Utah Jazz took advantage of their ability to improve their rosters or acquire salaries through trades. The scarcity of teams with purchasing power is due to the continued increase in rookie and veteran contract extensions signed since last July.
Teams must spend at least 90% of the $154.6 million salary cap before the first day of the regular season. This means that a team like Brooklyn, with $96 million in salaries, must spend $139.2 million before October 21st. If the Nets do not meet the minimum requirement by opening night, the difference will be distributed among their own players. Brooklyn would also lose the end-of-season cash distribution for non-taxpaying teams, which is projected at $11.7 million. The difference in the amount below the limit also applies to the Nets’ team salary. This means that the maximum salary cap space the Nets would have in the regular season is $15.5 million.
A team that exceeds the salary cap will also have the $8.8 million mid-level exception to use, either to sign a player or acquire him via a trade, once the salary space has been exhausted.
The free agents with cap space mentioned below are players expected to sign contracts for more than $14 million. The designation “player” means that the player can opt for the last year of their current contract.
Brooklyn Nets
Projected space: $35 million
The Nets go from selecting a record five first-round picks to using nearly $45 million in free agency. In addition to prioritizing restricted free agents Cam Thomas and Day’Ron Sharpe, Brooklyn is a destination for teams looking to shed salaries, but with the condition of including draft picks.
Since teams must spend 90% of the salary cap before the first day of the regular season, Brooklyn is expected to be active in free agency, even if the Nets are not interested in prominent players like Kyrie Irving and James Harden. Brooklyn has $96 million in salaries and will need to spend an additional $44 million.
Team Needs: Primary facilitator and overall depth
Free agents who fit: Josh Giddey, Julius Randle, Tyus Jones, Jonathan Kuminga, Cam Thomas, D’Angelo Russell, Malik Beasley, Malcolm Brogdon, Caris LeVert, Precious Achiuwa, Davion Mitchell, Quentin Grimes, and Oscar Tshiebwe
Moves I would make: With the available salary space, I would sign restricted free agent center Santi Aldama to a two-year, $40 million offer. Then, I would re-sign Thomas to a three-year, $54 million contract. Even with the addition of rookies Egor Demin and Nolan Traore, re-signing 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, and Ziaire Williams.
Level 2: Salary space, but with a cost
The Pistons and Grizzlies could join Brooklyn on the first tier, but at the cost of renouncing their own free agents or making a trade. Memphis is practically assured to create cap space and then renegotiate and extend Jaren Jackson Jr.’s contract.
Detroit Pistons
Projected space: To be determined
The ability to create up to $17 million in cap space has significant consequences for the Pistons’ roster. If Detroit decides to use the space, they would have to renounce free agents Malik Beasley, Tim Hardaway Jr., and Dennis Schroder. Beasley could be signed with space and Detroit would have the $8.8 million mid-level exception available to sign a free agent. The Pistons could also re-sign their own free agents and use the $14.1 million mid-level exception for Beasley or another free agent.
The Pistons prioritized improving their outside shooting and defense last offseason. They ranked 10th in defensive efficiency, ninth in allowed field goal percentage, fifth in points allowed in the paint, and ninth in blocks. The previous season, they ranked 20th in each category, including 25th in efficiency.
Team needs: Outside shooting, backup facilitator, and depth in the offensive zone
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, and Jeff Dowtin Jr.
A move I would make: Sign Beasley to a three-year, $45 million contract. Beasley helped improve the team with the worst three-point percentage in the 2023-24 season to one that ranked 17th last season. The Pistons can choose to sign Beasley with cap space and still have the $8.8 million mid-level exception available.
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 space: $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 in a hard cap in the first “apron”)
It is expected that the Grizzlies’ limited salary space will be allocated to a renegotiation and then an extension for Jaren Jackson Jr. The Grizzlies can increase Jackson’s salary from $23.4 million next season to $30.3 million and then extend it for an additional four years and $190 million. Reserves Anthony and John Konchar are likely candidates to be traded if the Grizzlies create additional salary space in a Jackson renegotiation. Jackson’s new contract does not affect Santi Aldama’s restricted free agency or the ability to use the $8.8 million exception.
Team needs: A healthy Ja Morant, a stretch-four with consistent space and minutes in the rotation.
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, and Trey Lyles
A move I would make: Trade Anthony and two future second-round picks to the Nets. The $12.5 million in savings this season would help pave the way for Memphis to renegotiate and then 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
Level 3: The medium-level, non-taxable exception club of $14.1 million
The largest group of teams includes those with access to all (or most) of the mid-level non-taxpayer exception of $14.1 million and the bi-annual exception of $5.1 million. A rule introduced last offseason also allows teams to use their exceptions to acquire a player via trade. A team is subject to a hard salary cap at the first “apron” if it uses more than $5.7 million of its non-taxpayer exception or its bi-annual exception.
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 in a hard cap in the first “apron”)
The Hawks have been aggressive in the offseason, trading Porzingis, selecting Asa Newell in the first round, and then obtaining a valuable 2026 first-round pick from Milwaukee or New Orleans. The moves leave some flexibility below the luxury tax and the first “apron” to add depth in the frontcourt. Atlanta has the non-taxpayer mid-level exception of $14.1 million and four trade exceptions, including those of $25.2 and $13.1 million.
In addition to free agency options, one must keep an eye on Trae Young’s future and the rookie extension for Dyson Daniels. Young is eligible to sign an extension of up to four years and $229 million and could become a free agent next summer if an agreement is not reached.
Team needs: Help on the back line, depth in the attacking zone and a 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’d make: In two separate transactions, use part of the mid-level exception not subject to taxes to sign Jerome to a three-year, $35 million contract. The Hawks then use part of their $13.1 million trade exception and acquire Alexander-Walker in a “sign-and-trade” from Minnesota. As part of the trade, Atlanta sends two future second-round picks.
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 extended traded player exception to acquire Vasilije Micic from Phoenix. The Hornets are in a hard cap in the first “apron”)
The Hornets are right at the salary cap and have draft assets and flexibility to target an All-Star if one were available. But general manager Jeff Peterson has emphasized that the Hornets are not going to skip steps in their rebuild. “I’m going to insist that we’re not going to rush anything,” Peterson told reporters after the season.
The Hornets do have the non-taxpayer mid-level exception of $14.1 million and the bi-annual exception of $5.1 million available to use in free agency or in a trade.
Team needs: Outside 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, and Reece Beekman
A move I would make: Sign 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 utilizing more of the expanded mid-level exception in the Isaac Okoro trade and is hard-capped at the first “apron”)
The Bulls are in a position to re-sign Josh Giddey and use their non-taxpayer mid-level exception of $14.1 million to improve the roster (they recently acquired Isaac Okoro, but at the expense of Lonzo Ball) and also accept money in trades. Chicago also has a $17.2 million trade exception that was created in the Zach LaVine deal.
Giddey’s next contract and over $60 million in expiring veteran contracts, including Nikola Vucevic and Coby White, are two of the main stories to follow this offseason.
Team needs: Depth in the attacking zone and defense-focused players
Free agents who fit: Giddey, Dorian Finney-Smith, Clint Capela, Larry Nance Jr., Kevon Looney, Braxton Key, Amir Coffey, Nickeil Alexander-Walker, and Gary Payton II
Moves I would make: Sign free agent point guards Giddey and Tre Jones. Giddey’s contract is for five years and 120 million dollars. Meanwhile, Jones signs a two-year, 18 million dollar contract.
Under contract: Vucevic, Patrick Williams, Zach Collins, Kevin Huerter, White, Isaac Okoro, Jalen Smith, Ayo Dosunmu
