Even before the 2023 NBA offseason concluded, the newly implemented Collective Bargaining Agreement (CBA) faced considerable criticism. Former player Austin Rivers famously remarked on the perceived disparity, stating, “You either make $50 million or $2 million. It`s a joke, bro. I can`t tell you how many mid-level guys are signing for the veteran minimum around the NBA.” This scrutiny intensified during the 2024 offseason with the introduction of the restrictive second salary cap apron, which significantly limited how high-spending teams could acquire players from outside their current roster. A year later, Golden State Warriors forward Draymond Green further fueled the debate, asserting that the new CBA had diminished the excitement of the annual free agency period.
In July, Green expressed his dismay on social media, noting his astonishment that “NBA free agency is over. Quite frankly, it never really started. The level of anticipation leading up to July 1st was as exciting as the fireworks on the 4th.” He directly attributed this change to the “New CBA” and the “second apron (hard cap),” claiming they had “absolutely put an end to Free Agency as we once knew it.”
This article explores Green`s claims and other offseason trends, examining whether the NBA`s player `middle class` is truly being marginalized and the current state of restricted free agency, through a fact-or-fiction format.
Is the Second Apron Ruining Free Agency?
Verdict: Fiction (for now)
While Draymond Green`s sentiment holds some truth, the second apron hasn`t entirely eradicated the excitement of free agency, though it has undoubtedly dampened it. A key change is that teams can now negotiate with their own free agents immediately after the Finals. This has led to many high-profile players, such as Kyrie Irving, James Harden, Julius Randle, Naz Reid, Fred VanVleet, Sam Merrill, and Bobby Portis, re-signing with their teams before the traditional July 1st free agency start. Similarly, Pascal Siakam and Malik Monk re-signed early last year.
Another contributing factor is the updated rules for rookie and veteran contract extensions. Players are increasingly opting for guaranteed long-term deals rather than risking the uncertainty of full free agency. For instance, players in the final year of their first-round contracts can now sign extensions for five seasons instead of four, even if the initial salary is less than 25% of the cap. Jabari Smith signed such an extension in June, following Jalen Johnson, Trey Murphy III, Alperen Sengun, and Jalen Suggs in 2024. The first year under the new CBA saw a record 14 rookie extensions.
This summer, potential free agents like Jalen Brunson, Giannis Antetokounmpo, Lauri Markkanen, Donovan Mitchell, Anthony Davis, Damian Lillard, Jimmy Butler, Rudy Gobert, Brandon Ingram, Derrick White, Ivica Zubac, and Alex Caruso all chose to sign long-term extensions instead.
NBA Commissioner Adam Silver commented on this trend during Summer League, stating, “The mechanism of the collective bargaining agreement was very clear: We are trying to give incumbent teams an advantage to draft, develop, and keep players. Doesn`t mean there`s no free agency, but in many cases, you have situations where players are electing to stay in those markets. So, I don`t necessarily think that`s a bad thing.”
The numbers support this shift: over the past three years, 51 veterans have signed extensions (potentially 53 if Luka Doncic and De`Aaron Fox extend this month), with 26 occurring during the 2024-25 season alone. This compares to 74 veteran extensions signed between 2017 and 2023. The average number of rookie extensions per season has increased from 8.3 under the 2017 CBA to 9.7 under the 2023 CBA, and veteran extensions have risen from 12.3 to 16.7 annually.
Are Teams Abusing the Stretch Provision?
Verdict: Fact
A notable NBA agent recently pondered how many teams would project to have significant cap space in the 2026 offseason. Traditionally, eight teams—the Brooklyn Nets, Charlotte Hornets, Chicago Bulls, Los Angeles Lakers, LA Clippers, Portland Trail Blazers, Utah Jazz, and Washington Wizards—would be on that list. However, as the Milwaukee Bucks demonstrated on July 1st, predicting cap space can be a challenge.
Bucks GM Jon Horst explained to The Athletic that their decision was “really a now versus future decision,” referring to their move to waive and then stretch the $113 million owed to All-Star Damian Lillard over five seasons. They also bought out Vasilije Micic`s $8.1 million, stretching his $2 million salary over three fewer seasons. These strategic moves allowed Milwaukee to create the necessary cap room to sign Myles Turner to a four-year, $108 million contract.
The Bucks weren`t alone in employing this strategy. The Memphis Grizzlies stretched Cole Anthony`s $11.1 million post-buyout salary over three seasons, using the created space to renegotiate and extend Jaren Jackson Jr.`s contract rather than signing a new free agent.
The stretch provision, which allows teams to waive a player and spread their remaining salary cap hit over multiple years for financial flexibility, is not new. From 2013 up until this past offseason, 54 players, totaling $320 million in salary, had been waived and stretched. Before Lillard, Nicolas Batum`s $8.9 million per-year cap hit with Charlotte was the largest of any stretched player.
However, in the past month alone, an astounding $223 million in salary has been stretched – just $100 million less than the total stretched from 2013 to 2024. Teams are increasingly willing to incur substantial future cap charges for immediate cap space, or, in the case of the Phoenix Suns, to alleviate severe financial burdens.
Two weeks after Lillard was waived, the Suns bought out Bradley Beal`s contract and are expected to stretch his $97 million over the next five seasons. (Teams have until August 29th to use this provision, provided the total stretched amount for all players doesn`t exceed 15% of the salary cap.) This move would result in a $19.4 million cap hit for Phoenix over the next five seasons, but crucially, it would help them fall below both the first and second aprons. This provides access to aggregate contracts in trades, the ability to use more than 100% of a traded player exception, and protects their 2033 first-round pick from being frozen. Ultimately, the stretch provision is projected to save the Suns over $200 million in salary and luxury tax penalties this season.
Is the NBA`s Middle Class of Free Agents Disappearing?
Verdict: Fiction
NBA Commissioner Adam Silver refutes this idea, stating that “the data does not support this notion.” He noted that the proportion of players signing non-veteran minimum and first-round rookie contracts with first-year salaries between $4 million and $20 million has actually seen a slight increase compared to the last few years of the previous CBA, rising by 8% from last offseason to 84%.
This past offseason saw 19 out of 31 listed players in this income bracket switch teams, marking a 32% increase from the previous summer. This trend is attributed to several factors: teams are more frequently utilizing the non-tax mid-level exception (up from five to ten instances), expanded trade rules, and the ability to acquire free agents using existing trade exceptions. For example, Atlanta acquired Nickeil Alexander-Walker via a sign-and-trade using a prior trade exception, and then signed Luke Kennard using part of their non-tax mid-level exception.
Former Players Association President CJ McCollum echoed Silver`s sentiment, telling Front Office Sports, “There`s a misconception that players aren`t being compensated the same ways they have in the past. That`s not true. Guys are making more money than they ever have. The middle class is making more money than they ever have before.”
Overall player compensation has significantly increased: since the 2017-18 season, the salary cap has grown from $99 million to $154.7 million, and total player salaries have risen from $3.3 billion to $5.4 billion.
Examples of 2025 Offseason Deals ($4M to $10M range):
- Ty Jerome: 3 years, $27.6 million
- Brook Lopez: 2 years, $17.9 million
- Sam Merrill: 4 years, $38 million
- Deandre Ayton: 2 years, $16.2 million
- Tre Mann: 3 years, $24 million
- Kevon Looney: 2 years, $16 million
- Tre Jones: 3 years, $24 million
- Tyus Jones: 1 year, $7 million
- Clint Capela: 3 years, $21.1 million
- Isaiah Jackson: 3 years, $21 million
- Jake LaRavia: 2 years, $12 million
- D`Angelo Russell: 2 years, $11.7 million
- Nicolas Batum: 2 years, $11.5 million
- Guerschon Yabusele: 2 years, $11.3 million
- Bradley Beal: 2 years, $11 million
- Paul Reed: 2 years, $10.5 million
- Marcus Smart: 2 years, $10.5 million
- Kevin Porter Jr.: 2 years, $10.5 million
- Moritz Wagner: 1 year, $5 million
- Ryan Rollins: 3 years, $12 million
Examples of 2025 Offseason Deals ($10M to $20M range):
- Santi Aldama: 3 years, $52.5 million
- Duncan Robinson: 3 years, $48 million
- Nickeil Alexander-Walker: 4 years, $60.5 million
- Damian Lillard: 3 years, $41.6 million
- Caris LeVert: 2 years, $28.9 million
- Dennis Schroder: 3 years, $44.4 million
- Bobby Portis: 3 years, $43.5 million
- Dorian Finney-Smith: 4 years, $52.7 million
- Davion Mitchell: 2 years, $24 million
- Luke Kennard: 1 year, $11 million
- Luke Kornet: 4 years, $40.7 million
Are Restricted Free Agents Disadvantaged?
Verdict: Fact and Fiction
Indeed, teams like Chicago, Golden State, Philadelphia, and Brooklyn currently hold significant leverage in contract negotiations with their restricted free agents. The practical reality is that, apart from Brooklyn (Cam Thomas` current team), no other team has more than $14.1 million available to sign any of these four players (Josh Giddey, Jonathan Kuminga, Quentin Grimes, and Cam Thomas) to an offer sheet. Even if the market had ample cap space, only two restricted free agents (Deandre Ayton and Matisse Thybulle) have signed offer sheets since 2022.
Jonathan Kuminga and Quentin Grimes` prospects are further complicated by `first apron` concerns. If a sign-and-trade were to materialize, their outgoing salary only counts as 50%, which would likely hard-cap the Warriors and 76ers.
However, restricted free agency isn`t a new challenge. For years, players who didn`t sign rookie extensions have had to navigate this strict rule, often by compromising on their next contract. Since 2023, out of 14 former first-round picks who received a qualifying offer and then signed a contract, only three (Tyrese Maxey, Immanuel Quickley, and Cameron Johnson) secured a starting salary over $20 million in their first season. Kuminga could have been the fourth, but he reportedly declined a two-year, $45 million contract from the Warriors, which included a team option.
Are Contract Bonuses Disappearing Due to the Second Apron?
Verdict: Fact
The impact of the second apron on contract bonuses became starkly evident when the Dallas Mavericks, hampered by injuries in March, couldn`t sign a 15th player because they were just $50,000 below the first apron. This was due to $4 million in bonuses for Kyrie Irving, Caleb Martin, and P.J. Washington counting against their salary cap. Dallas` predicament served as a clear warning to other teams this offseason.
Consequently, of the more than 150 players who signed contracts this offseason, none have performance-based bonuses negotiated into their deals. This includes Kyrie Irving and Minnesota Timberwolves forward Julius Randle, both of whom had bonuses in their previous contracts but none in their current ones. In stark contrast, 23 free agents signed contracts with incentives in 2023 and 2024.
This decline in incentives also extends to first-round extensions. In the 2022 and 2023 offseasons, 11 out of 26 players who signed extensions had bonuses. Since then, only Moses Moody of the Warriors has such a clause.
Tyler Herro`s extension with the Miami Heat, signed before the 2023 CBA, serves as a powerful illustration of why teams are now resisting bonuses. Herro has five bonus clauses, including for MVP, All-NBA, and Defensive Player of the Year honors, which resulted in Miami being charged $2.5 million against both the first and second apron.
Does the Current CBA Penalize Well-Drafting Teams?
Verdict: Fact, unless you plan ahead
CJ McCollum recently voiced a crucial point regarding the new CBA`s impact: “You shouldn`t be punished for drafting well. Oklahoma City is going through right now where you have to pay a lot of players who are really good. And you draft them, you shouldn`t be punished for drafting well. You should be able to pay and keep and retain the players you`ve drafted. And when you have those windows to where you really have a chance to compete and win a championship, you shouldn`t have such severe restrictions.”
McCollum`s statement highlights a genuine financial disadvantage faced by teams when players on maximum rookie extensions achieve All-NBA, Defensive Player of the Year, or MVP honors in their fourth season. For example, the Cleveland Cavaliers and Detroit Pistons incurred an additional $8 million in salary this season (totaling $45 million over the contract`s duration) when Evan Mobley was named Defensive Player of the Year and Cade Cunningham earned All-NBA recognition.
However, a strategic counter-approach is exemplified by the Oklahoma City Thunder with Chet Holmgren and Jalen Williams. Unlike Paolo Banchero`s extension with the Orlando Magic, which includes a 30% escalator (increasing his $239 million extension to $287 million if he makes All-NBA, MVP, or DPOY), Holmgren`s contract lacks such a clause. Williams` salary for next season increases to Banchero`s level only if he is named MVP, Defensive Player of the Year, or All-NBA first team; lesser percentages apply for second and third team honors.
GM Sam Presti and the Thunder have also shown remarkable foresight in managing their finances and accumulating draft assets to account for future extensions. Over the past two seasons, OKC has signed players like Isaiah Hartenstein, Isaiah Joe, Aaron Wiggins, Jaylin Williams, and Ajay Mitchell to contracts that decline, include team options, or are partially guaranteed. This long-term planning is set to continue, as the Thunder possess a remarkable surplus of 13 first-round picks and 16 second-rounders over the next seven years, with potentially four first-rounders in the 2026 draft alone.
