Ranking the NBA's 5 Worst Salary-Cap Messes This Offseason
Flexibility is valuable in the NBA, but top-tier contending rosters get very expensive. The league doesn't want the wealthiest owners to have a competitive advantage, which partially explains the luxury tax and apron systems designed to keep the playing field relatively level.
Where teams fall short is when they believe they're pushing in their chips for a winner, but get knocked out in one of the early rounds—or don't even make the postseason.
Lack of flexibility isn't necessarily bad, but it will impact the direction of the following franchises.
Honorable Mentions: Cavs, Bucks, Thunder, Suns and More
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The Cleveland Cavaliers were the only franchise above the NBA's 2025-26 second apron, freezing the team's 2033 first-round pick. That selection cannot be traded and will drop to the end of the first round, unless Cleveland can quickly get its payroll under control. Initially, that will be difficult, though James Harden may opt out of his $42.3 million salary to re-sign for a couple of years at a starting salary in the $30-$35 million range.
The Milwaukee Bucks have Damian Lillard's waived-and-stretched salary, hitting their books for the next four seasons at over $20 million a year. The Bucks still owe multiple first-round picks and swaps and have almost no second-round compensation. That, and the future of Giannis Antetokounmpo, is unclear. It's difficult to see how the franchise gets back to contention if Antetokounmpo were open to extending.
The Oklahoma City Thunder can afford to pay for a three-peat if they win another title. Still, the price will be significantly higher due to luxury taxes and apron restrictions. The Thunder can avoid some of that by moving on from Lu Dort and/or Isaiah Hartenstein, depending on the appetite to absorb the penalties.
Meanwhile, the Phoenix Suns already pivoted by trading Kevin Durant, improving with Dillon Brooks and, when healthy, Jalen Green. The picks situation isn't great. The team waived Bradley Beal and stretched salary on the books at almost $20 million through 2029-30, but payroll is already normalizing.
Others, like the Boston Celtics, Philadelphia 76ers, and Toronto Raptors, have complications to navigate, but not enough to rank them below.
5. Sacramento Kings
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The Kings are different than every other team on the list with an expensive roster that won just 22 games this season. The trade for De'Andre Hunter was perplexing, with his $24.9 million salary for 2026-27. The Kings are very close to the second apron, potentially over, depending on where their first-round pick lands in the draft lottery.
Still, Sacramento's troubles should be short-lived. Zach LaVine ($49 million, player option), DeMar DeRozan ($25.7 million) and Hunter are on expiring contracts. Domantas Sabonis and Malik Monk are on the books through 2027-28, though Monk can exit earlier with a player option.
The Kings are weak with second-round picks, but more importantly, the franchise has nearly all of its firsts plus the San Antonio Spurs' selection in 2027 (1-16) and one from the Minnesota Timberwolves' in 2031.
Look for Sacramento to try to move off veteran contracts, including those of Sabonis, LaVine, and DeRozan, not only to avoid the apron but also to get entirely under the luxury tax threshold. Failing that, DeRozan's contract is only $10 million guaranteed. It can be waived and stretched over three seasons at $3.3 million per year.
4. New York Knicks
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The Knicks are among the best teams in the Eastern Conference. An NBA Finals bid or title justifies a heavy payroll that should fall just below the second apron. The payroll won't really let up until after the 2027-28 or 2028-29 seasons.
Last year's trip to the conference finals got coach Tom Thibodeau fired. Falling short or plateauing at the same level may lead to more significant roster adjustments.
There was a time when New York had a ton of first-round compensation, but those picks have been used or traded, many for Mikal Bridges to the Brooklyn Nets. Outside of No. 24 in June's draft, plus a couple of second-rounders, roster additions will primarily be limited to vets on minimum contracts.
None of that's an issue if the Knicks continue to advance in the playoffs, but there's much basketball to be played in the coming weeks.
3. Minnesota Timberwolves
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The Timberwolves are vying for a third straight trip to the Western Conference Finals. To build one of the most consistent playoff performers, the franchise gave up significant draft compensation in both rounds. Its 2032 first-round pick is frozen as a second-apron penalty from the 2024-25 season.
Starting guard Donte DiVincenzo projects to be out all of next year with a torn Achilles. Ayo Dosunmu, a trade deadline acquisition, was a breakout performer in the first round against the Nuggets. He'll seek a significant pay increase from his current $7.5 million.
As it is, the Timberwolves' flexibility is marginal. Keeping Dosunmu is a must, but that may push the team close to the second apron. Both Julius Randle and Rudy Gobert have player options before the 2027-28 season. They will likely be looking for new deals. Is another conference finals without making the NBA Finals justified? That's assuming Minnesota can get past Victor Wembanyama and the San Antonio Spurs.
2. Denver Nuggets
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The Nuggets went all in on their 2022-23 championship roster, investing heavily in the core of Nikola Jokić, Jamal Murray, Aaron Gordon, Christian Braun, and Michael Porter Jr. Unfortunately, the franchise hasn't been able to get out of the second round since, falling recently to the first round to the Minnesota Timberwolves.
Building the roster depleted Denver's draft capital, as did getting out of Porter's contract into Cam Johnson's. Jokić is heading into his final season, as he is likely to opt out of his $62.8 million for 2027-28 to extend in July.
It's safe to say the team's roster has worsened each year since the title. Peyton Watson was a bright spot this season, but he'll be a restricted free agent in July seeking a hefty payday. Jonas Valančiūnas is due $10 million, but with $2 million guaranteed, he could be a financial casualty to help Denver get under the NBA's second apron.
Teams with spending power this summer, like the Los Angeles Lakers, Brooklyn Nets, and Chicago Bulls, may issue Watson a qualifying offer to test Denver's willingness to spend any further. The Nuggets may need to find trade suitors for veterans like Gordon and/or Johnson to afford Watson.
1. Orlando Magic
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The Magic went for it last summer, trading multiple first-round picks to the Memphis Grizzlies for Desmond Bane. Unfortunately, Franz Wagner was injured for much of the season, forcing the team to go through the play-in to face the top-seeded Detroit Pistons. Orlando built a surprising 3-1 lead, then fell apart and lost in seven games, leading to coach Jamahl Mosley's firing.
Part of the issue was Franz Wagner missing much of the regular season and much of the playoffs. The Magic weren't able to get a definitive answer on whether Paolo Banchero and Wagner can win together. Still, the franchise is paying top dollar for a roster with Jalen Suggs, Wendell Carter Jr., Banchero, Wagner, and Bane.
The team projects to be under the second apron, assuming Jonathan Isaac is let go. Anthony Black has grown into a vital rotation role and is due an extension this summer; otherwise, he'll be a restricted free agent in 2027.
With major contracts on the books for multiple years, can Orlando continue to invest in this underperforming product with no flexibility to improve, or is it time to pivot?
Email Eric Pincus at eric.pincus@gmail.com and follow him on X @EricPincus and Bluesky.
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