I read an article saying they break about even cash wise with an annual payroll way up there in 2nd apron. Was fine for former owners who paid like 500m for the team. But new owners paid 6B for team so they might NOT keep it together if not winning the championship. Need a better ROI. Will be interesting
Yeah, read this article as well. Don't know if it's a good thing or a bad thing. It's not just the money. Being in 2nd apron bring restrictions that any team will have a hard time staying within them for a long time.
Key Restrictions for Second Apron Teams
Loss of Mid-Level Exception (MLE): Teams cannot use the taxpayer mid-level exception (worth $5.168 million in 2024-25) to sign free agents. They are limited to signing players to veteran minimum contracts only.
Trade Restrictions: No Salary Aggregation: Teams cannot combine multiple players' salaries to trade for a single player with a higher salary (e.g., trading two players earning $10M and $15M for a player earning $25M).
100% Salary Matching: Teams cannot take back more salary in a trade than they send out (limited to 100% of outgoing salary, compared to 125% for non-taxpayer teams).
No Trade Exceptions: Teams cannot use trade exceptions generated from prior years.
No Cash in Trades: Teams are prohibited from sending cash as part of trade deals.
No Sign-and-Trade Acquisitions: Teams cannot acquire players via sign-and-trade deals if the incoming salary keeps them above the second apron.
Frozen Future Picks: Teams cannot trade their first-round draft pick seven years in the future (e.g., the 2032 pick in 2024-25).
Pick Relegation: If a team remains above the second apron for three out of five seasons, their first-round pick seven years out is automatically moved to the end of the first round, regardless of team performance.
Buyout Market Restrictions:
Teams cannot sign players waived during the regular season if their pre-waiver salary exceeded the non-taxpayer mid-level exception ($12.822 million in 2024-25). This prevents adding high-salary players from the buyout market.