Over the Apron
The 2023 CBA · plain English

Glossary

The main terms the simulator uses, filed in four drawers — written plainly, with CBA references where they help. The same cards pop up anywhere you tap a term in the app.

The lines

Salary cap

01

The league-wide ceiling on team salary, set each July from projected basketball-related income. It's a soft cap: teams routinely exceed it using exceptions like Bird rights and the MLE — the real walls are the aprons above it.

2023 CBA · Art. VII §2

Luxury-tax line

02

The threshold above the cap where the owner starts paying tax on overage, at rates that escalate with distance and with repeat-offender status. Many rules key off it: taxpayer exceptions, apron lines, and the mid-level's size.

2023 CBA · Art. VII §2

Under the cap

03

Team salary is below the salary cap, so the team has cap room: it can sign free agents or absorb traded salary directly into that space instead of matching salaries.

2023 CBA · Art. VII

Over the cap

04

Above the cap but below the luxury-tax line. The team can't use cap room, so signings go through exceptions (MLE, Bird rights, minimums) and trades must satisfy salary matching.

2023 CBA · Art. VII

Luxury tax

05

Team salary is above the tax line, so the owner pays an escalating tax on the overage. Being a taxpayer also shrinks which exceptions are available (the full MLE gives way to the smaller Taxpayer MLE).

2023 CBA · Art. VII §2

First apron

06

A hard line a few million above the tax. Teams over it lose tools: no sign-and-trade acquisitions, no expanded matching in trades (100% only), no regular-season waiver-market signings when the terminated contract was above the NT-MLE, and no pre-existing TPE use. Some moves (using the full MLE, acquiring via sign-and-trade, a qualifying waiver signing, or expanded matching) hard-cap a team AT this line for the whole season.

2023 CBA · Art. VII §2(e)
Full explainer with 2026-27 figures →

Second apron

07

The most restrictive tier, above the first apron. Second-apron teams can't aggregate salaries in a trade (no combining two players to match one), can't send cash, can't use any MLE, and their own first-round pick seven drafts out is frozen; repeat second-apron seasons can drop it to the end of the first round. Designed to make super-team payrolls painful to operate.

2023 CBA · Art. VII §2(e), §2(f)
Full explainer with 2026-27 figures →
Signing tools

Bird rights

08

An exception letting a team exceed the cap to re-sign its own free agent who's been on the roster ~3 seasons, up to his max. This is how expensive rosters keep their stars — and it's the one signing tool even second-apron teams keep. Renouncing a free agent forfeits it. (And yes — named after Larry.)

2023 CBA · Art. VII §6(b)
Full explainer with 2026-27 figures →

Early Bird rights

09

The two-season version of Bird rights: a team over the cap can re-sign its own free agent for up to 175% of his prior salary (or 105% of the league-average salary, if greater), on a deal of at least two seasons.

2023 CBA · Art. VII §6(b)

Non-Bird rights

10

The one-season version: an over-the-cap team can re-sign its own free agent, but only up to 120% of his prior salary (or 120% of the minimum). Enough for role players, useless for a star raise.

2023 CBA · Art. VII §6(b)

Cap space

11

Room below the salary cap. Teams with room sign free agents directly and can absorb incoming trade salary into the space (plus a small $250k cushion) without sending matching salary back.

2023 CBA · Art. VII
Full explainer with 2026-27 figures →

Non-Taxpayer Mid-Level Exception

12

The full MLE (9.12% of the cap, up to 4 years) for over-the-cap teams that stay below the first apron. Spending past the taxpayer portion — in dollars or years — hard-caps the team at the first apron for the rest of the season, and later moves must stay under that ceiling.

2023 CBA · Art. VII §6(e)
Full explainer with 2026-27 figures →

Taxpayer Mid-Level Exception

13

The smaller MLE for teams over the first apron (up to 2 years). Using it hard-caps the team at the second apron for the season. Teams over the second apron get no MLE at all.

2023 CBA · Art. VII §6(f)

Room Mid-Level Exception

14

A small exception (5.678% of the cap, up to 3 years) for teams that used cap room: after spending their space, they still get this to add one more mid-priced player.

2023 CBA · Art. VII §6(g)
Full explainer with 2026-27 figures →

Bi-Annual Exception

15

A small exception (3.32% of the cap, up to 2 years) usable only every other season, and only by teams below the first apron. Using it hard-caps the team at the first apron.

2023 CBA · Art. VII §6(d)
Full explainer with 2026-27 figures →

Minimum exception

16

Any team, at any payroll, can sign players to the league minimum (scaled by years of service). It's the only signing tool that never hard-caps you — which is why deep-apron contenders live on minimums. Bonus fine print: a vet with 3+ years of service on a ONE-year minimum counts on the cap, tax, and aprons only at the 2-year minimum — the league reimburses his team the difference.

2023 CBA · Art. VII §6(i), §3(f)
Full explainer with 2026-27 figures →
Trade machinery

Salary matching

17

In a trade, each over-the-cap team's incoming salary is capped by a formula on its outgoing salary — expanded bands (200% + $250k on small salaries, outgoing + ~$9.1M in the middle, 125% + $250k on big ones) for teams below the first apron, and a strict 100% for teams above it. The middle figure is the CBA's "$7.5M" grown with the cap since 2023-24. Each team in a trade is judged under its own band.

2023 CBA · Art. VII §6(j)(1)(iv)
Full explainer with 2026-27 figures →

Hard cap

18

Certain moves — using the full MLE or BAE, taking back extra salary under expanded matching, acquiring a player by sign-and-trade, signing a waived player whose prior contract topped the mid-level, combining salaries in a trade to drop through the second apron, or sending cash in a trade — freeze a ceiling (first or second apron) the team may not cross for the rest of the season, for any reason. The ceiling is tested against apron salary, not cap holds. Your hard cap sticks across moves: a trade today can kill a signing next week, and vice versa.

2023 CBA · Art. VII §2(e)
Full explainer with 2026-27 figures →

Trade restriction

19

The CBA freezes recently signed players: free agents signed this offseason can't be traded until December 15 (later for some Bird re-signings), draft picks for 30 days after signing, and extensions beyond extend-and-trade limits for six months. Extensions within those limits — like a pre-moratorium extension of an expiring deal — carry no freeze at all.

2023 CBA · Art. VII §8(d)–(f)

Draft-pick trading

20

Teams may trade firsts up to seven drafts out, but the Stepien rule bars leaving yourself without a first-round pick in consecutive future drafts. The board tracks pick ownership across your move list, so a pick you dealt two trades ago still counts against you. A first your team already owes away in the real world never appears here — it isn't yours to trade, and its year counts as uncovered.

NBA rule (Stepien); 2023 CBA · Art. VII
Full explainer with 2026-27 figures →
The numbers

Committed salary

21

The guaranteed salary a team has on the books for a season. Your own free agents' cap holds pile on top until re-signed or renounced — holds eat cap ROOM, but apron and tax status are measured on signed salary alone (the CBA excludes Free Agent Amounts from apron math). That's why a team can have no space yet still be under the aprons.

2023 CBA · Art. VII §1, §2, §4(d)

Maximum salary

22

A player's max is a share of the cap set by experience: 25% with 0–6 years of service, 30% with 7–9, 35% with 10+. A team re-signing its own player can always offer at least 105% of his previous salary, even past those lines.

2023 CBA · Art. II §7

Years of service

23

Seasons on an NBA roster. It sets a player's minimum salary, his maximum-salary tier (25/30/35% of cap), Bird-rights eligibility, and which special rules apply — like the Gilbert Arenas cap on offer sheets to 1st/2nd-year restricted free agents.

2023 CBA · Art. II

Raises

24

Multi-year deals step up from the first-year salary: 8% annual raises when a team re-signs its own free agent with Bird or Early-Bird rights, 5% for everyone else (outside signings, cap room, exceptions). That first-year number is what all the rules test.

2023 CBA · Art. VII §5

Cap hold

25

A placeholder charge (a multiple of last year's salary, by Bird status) that a team's own free agent occupies on its books until he re-signs, is renounced, or signs elsewhere. Holds keep teams from spending the same dollar twice: you can't use "his" room and then re-sign him with Bird rights. Renouncing clears the hold but forfeits the Bird rights.

2023 CBA · Art. VII §4
Full explainer with 2026-27 figures →

Restricted free agent

26

A free agent whose team gave a qualifying offer, earning the right to match any offer sheet he signs. Match and you keep him at the rival's terms (but can't trade him without his consent for a year); first-to-second-year players are further capped by the Gilbert Arenas rule.

2023 CBA · Art. XI §5

Apron Value

27

Each player's on-court value on a 0-100 scale where 50 is replacement level and the high 90s are league-best. It blends box-score production with stint-level RAPM from reconstructed five-man lineups. Hover shows the uncertainty band, tier, and components. It's a talent gauge, not a contract measure — matching and the aprons handle legality.

overtheapron.com/accuracy