Victor Wembanyama, the San Antonio Spurs’ star center, was the clear favorite for the NBA Defensive Player of the Year (DPOY) award. However, Wembanyama’s season-ending injury due to deep vein thrombosis in his right shoulder means he will miss the 65-game requirement for award eligibility. This development has significant financial implications for other players and teams, particularly the Cleveland Cavaliers and Memphis Grizzlies.
With Wembanyama out of the picture, Jaren Jackson Jr. of the Memphis Grizzlies and Evan Mobley of the Cleveland Cavaliers have emerged as the frontrunners for the DPOY award. Winning this prestigious award comes with substantial financial incentives. For Jackson, securing the DPOY award would make him eligible to sign a five-year, $345 million supermax contract.
On the other hand, Mobley’s rookie extension, which he signed last offseason, would see a significant increase in value from $224 million to $269 million if he wins the DPOY award. While this is a substantial financial gain for Mobley, it could also pose a salary cap challenge for the Cavaliers. Managing such a large contract within the constraints of the NBA’s salary cap will require careful planning and strategic financial decisions.
The NBA salary cap is a set amount of money designed to limit what teams can spend on player payroll. The number is determined for each season based on a percentage of projected basketball-related income for the upcoming year. For the 2024-25 season, the salary cap is set at $140.588 million. Unlike the NHL, which has a “hard cap” that cannot be exceeded under any scenarios, the NBA has a “soft cap”. NBA teams are allowed to go over the salary cap by using various exceptions outlined in the collective bargaining agreement (CBA).
If a team’s payroll exceeds a certain threshold greater than the salary cap, then that team must pay a tax. This season, franchises start by paying $1.50 to the league for every dollar they go over the threshold, and the rate incrementally increases the further they go over. Additionally, the league imposes a repeat offender penalty (an additional dollar-for-dollar tax over the payroll threshold) for those who paid a tax in three of the previous four seasons.
The second apron is an additional level introduced in the 2023 CBA that is $17.5 million over the luxury tax threshold. Teams that finish a season with a payroll over the second apron are subject to a long list of roster-building restrictions. These restrictions include:
- Teams cannot acquire a player in a sign-and-trade if that player keeps them above the apron.
- Teams cannot sign a player waived during the regular season whose salary was over the $12.2 million midlevel exception.
- Salary matching in trades must be within 110 percent, rather than 125 percent for teams not above the apron.
- No access to the $5 million taxpayer midlevel exception.
Then this season, even more restrictions were added to the second apron, including:
- Teams cannot use a trade exception generated by aggregating the salaries of multiple players.
- Teams cannot include cash in a trade.
- Teams cannot use a trade exception generated in a prior year.
- A team’s first-round pick is moved to the end of the first round if they remain in the second apron for three out of five seasons.
For the Grizzlies, securing Jackson with a supermax contract would solidify their defensive lineup and potentially make them a more attractive destination for other free agents. For the Cavaliers, Mobley’s increased contract value could impact their ability to sign other key players and maintain a balanced roster. Managing such a large contract within the constraints of the NBA’s salary cap will require careful planning and strategic financial decisions.
In conclusion, Victor Wembanyama’s unfortunate injury and subsequent ineligibility for the DPOY award have opened up new opportunities for Jackson and Mobley, and financial challenges for the Cleveland Cavaliers and Memphis Grizzlies. The outcome of the DPOY race will not only determine individual player contracts but also shape the future financial strategies of these franchises.
