Understanding the Milwaukee Bucks’ Salary Cap Situation: Explained by John Hollinger
The Milwaukee Bucks’ offseason has been filled with excitement and anticipation as they gear up for the upcoming NBA season. However, amidst all the buzz, there is one lingering question that remains unanswered – when will the Bucks fill the final spot on their 15-man roster? General Manager Jon Horst has yet to make a move, leaving fans curious about the team’s plans moving forward.
The Bucks’ current roster consists of 14 players, leaving one spot open for potential additions. In a recent interview with The Athletic, Horst expressed his satisfaction with the team’s current point guard situation, hinting that the final roster spot could be used to bring back Thanasis Antetokounmpo for another season. However, with the team’s salary cap situation in mind, it’s important to analyze how this move would impact their financial flexibility.
According to current salary cap projections, the Bucks’ total salary with 14 players falls somewhere between $179.5 and $180 million. With the second luxury tax apron set at $182,794,000 for the upcoming season, it seems feasible for the Bucks to fit a minimum contract of $2,019,395 within their salary cap constraints. However, Horst recently stated in an interview with the Milwaukee Journal-Sentinel that the Bucks “are above the second apron this season.” This raises questions about how they can be above the apron despite seemingly having enough room under it.
To shed light on this situation, I reached out to John Hollinger, a former NBA executive and current analyst for The Athletic. Hollinger explained that the NBA’s new collective bargaining agreement introduced a new level above the luxury tax called the second apron. This level is crucial for teams like the Bucks, as going over it would impose certain restrictions on their roster moves. However, this season serves as a transition period between the old and new CBA, with the restrictions becoming more severe next season.
Hollinger clarified that the Bucks’ only limitation this season for going over the second apron is their inability to use the taxpayer mid-level exception. Additionally, they cannot sign a player on the “buyout market” if their pre-waiver salary exceeds this year’s non-taxpayer mid-level exception of $12.4 million. However, this restriction already existed when the Bucks crossed the threshold of the first luxury tax apron.
While this explanation provides some insight into the second luxury tax apron, it doesn’t directly address whether the Bucks are currently above it. Hollinger delved deeper into the intricacies of the salary cap to provide a clearer picture.
Each player has a “cap number,” which typically aligns with their salary plus any likely incentives for that year. However, unlikely incentives, although not included in the salary cap number, count towards the apron calculations. This distinction becomes crucial for teams like the Bucks, who have multiple contracts with significant incentive bonuses.
For example, Jrue Holiday has $4,401,040 in incentives for this season that are considered “unlikely.” These incentives do not count towards his $36,801,707 cap number but are factored into the apron calculation, bringing his total to $41,202,747. Similarly, Khris Middleton and Grayson Allen have unlikely incentives of $2,345,679 and $850,000, respectively.
Another unique case is A.J. Green, whose salary counts towards the apron as the two-year minimum of $2,019,763. However, Green is listed on the cap sheet at $1,901,769, requiring an additional $119,793 to be added to the apron calculation.
Taking all these factors into account, it becomes evident that the Bucks have already surpassed the second apron. They would need to get back under it before engaging in any prohibited activities outlined by the league. The unlikely incentives for Holiday, Allen, and Middleton, along with the “cap-tax variance” for Green, add $7,714,656 to the Bucks’ books for this season. Consequently, their total salary for apron purposes stands at $187,406,535, nearly $5 million over the apron.
In conclusion, the Bucks’ salary cap situation is more complex than it initially appears. Despite having seemingly enough room under the second luxury tax apron to sign a minimum contract player, the inclusion of unlikely incentives and other factors has pushed them over the limit. This understanding sheds light on why Horst mentioned being above the apron and highlights the challenges the Bucks face in making roster moves while staying within the league’s financial constraints.
As the Bucks continue to navigate their offseason and prepare for the upcoming season, it will be interesting to see how they address their final roster spot and manage their salary cap situation. Fans can rest assured that General Manager Jon Horst is diligently working behind the scenes to make the best decisions for the team’s success.