Cleveland Cavaliers preseason salary cap breakdown and future implications

It’s no secret that the Cleveland Cavaliers have been spending money.

What might be a bit surprising to Cavs and NBA fans alike is that with the recent dismantling of the 2023 NBA champion Boston Celtics, the Cavaliers are now the most expensive payroll in the NBA. This has led to the Cavs entering what is called the second apron of the salary cap.

So, what is the second apron?

The NBA salary cap apron system can best be described as spending thresholds; should a team pass a threshold, they incur the appropriate penalties. Now, the NBA compliant threshold is quaint at about $188 million, the Cavaliers have far surpassed this at about $226 million. The good news is the NBA had a 10% salary cap increase this offseason, so the second apron threshold has risen to about $208 million.

Since the Cavaliers have crossed the second apron, they will incur all of the second apron penalties for the upcoming 2025-26 season. These penalties are highly restrictive, but also situational. For example, the Cavs don’t have enough money, or a usable exception, to sign a free agent for anything but the minimum. However, they were able to extend Sam Merrill to a four-year $38 million deal by utilizing his Bird rights.

Since the Cavs have already been meticulously constructed by utilizing exceptions, trades, and extensions prior to exceeding the second apron, they will retain 11 of their current roster of players into the 2026-27 season.

This means that, while the Cavs can remain together for two more seasons, they will also remain a second apron team. This could be problematic should the Cavaliers fail to find the post-season success they have been vying for.

Another repercussion of being a second apron team is the Cavs would be extremely limited in means to improve or retool the roster throughout the season, and into the next offseason. This means that the Cavaliers are unable to use the $8.5 million exception they created when they moved on from Georges Niang last season, to improve the roster during this 2025-26 season.

Another restriction the Cavaliers will have to consider if they stay over the second apron beyond the 2025-26 season is draft pick forfeiture and freezing.

Being a second apron team, the Cavaliers have already incurred the penalty where the NBA freezes their draft pick that is seven years away. The consequences of this freezing are that the Cavaliers cannot utilize this pick in any trade this season. Thankfully, should the Cavs get back under the second apron their pick will be unfrozen at the start of the next NBA tax year.

However, should the Cavs find themselves over the second apron in two more of the next four seasons then they will have their first round pick moved to the end of the round, regardless of their finishing position.

The good news for Cavs fans is that the team has non-catastrophic options for getting back under the second apron, but they would certainly be uncomfortable conversations to be had.

General Manager Koby Altman has repeatedly expressed his faith in the current roster and their abilities to contend for a championship now. If he is correct, this current conglomerate of players could get two shots at proving themselves before they have to worry about Donovan Mitchell’s player option.