REFERENCE · GLOSSARY
CBA Glossary Every CBA concept the game touches, with plain-English summaries, worked examples, common gotchas, and Article/Section citations into the 2023 CBA. Click any entry to expand.
38 / 38 TERMS
Arenas (Gilbert Arenas) Provision Caps Y1+Y2 of long offer sheets to Non-Tax MLE, with poison-pill Y3+. Base Year Compensation Reduces a re-signed player's tradable value to ~50% of new salary briefly. Bi-Annual Exception ~$5.5M (2026-27) signing exception, usable only every other year, hard-caps the team at the 1st apron, off-limits to apron teams. Bird Rights Right to re-sign your own free agent above the cap. Cap Holds Placeholder cap charges for outgoing FAs and unsigned draft picks. Designated Veteran (Supermax) A 35%-of-cap max for veterans with 7-9 years in the league who hit elite award criteria — as an extension or a new deal. First Apron Tier above the tax — blocks incoming sign-and-trades, the full mid-level exception, the bi-annual exception, and using certain trade exceptions. Frozen Pick (2nd Apron Penalty) 2nd-apron team's pick 7 yrs out is frozen for a year — can't trade it. Hard Cap After certain moves, you cannot exceed an apron for the rest of the season. Incomplete-Roster Charge A phantom rookie-minimum salary added for each empty roster spot below the minimum. July Moratorium Jul 1–6 quiet period — agreements verbal only, signings start Jul 6. Luxury Tax Pay-per-dollar penalty for exceeding the tax line. Maximum Salary A tiered ceiling on a player's first-year salary — 25% / 30% / 35% of the cap depending on years in the league. Minimum Salary League-set salary floor by years of service. Non-Taxpayer Mid-Level Exception The full mid-level exception — ~$15M starting salary in 2026-27, up to 4 years, hard-caps the team at the 1st apron. Offer Sheet RFA contract from another team that the original can match. Over-38 Rule On long deals that run past age 38, later-year salary is pulled forward onto earlier years for the cap. Poison Pill (Rookie Extension Trade) Trade math difference between cap hit and average for a recently-extended rookie. Post-Signing Trade Restrictions Just-signed players can't be traded for 3 months / Dec 15 / etc. Qualifying Offer (QO) 1-year tender that makes a player a Restricted Free Agent. Renouncing Free Agents Drops cap hold and Bird rights for an outgoing FA — frees up cap space. Repeater Tax Steeper tax rates if you've paid tax in 3 of the last 4 years. Restricted Free Agent Player whose team can match any offer sheet within 2 days. Rookie-Scale Extension An extension a first-rounder can sign after his 3rd season — first-year max of 25% (or 30% via the Rose Rule), up to 5 years. Room MLE The mid-level exception for under-cap teams — ~$9.4M start in 2026-27, 3 years max. Rose Rule (5th-Year Eligible) Bumps a rookie-scale extension from 25% to 30% of the cap if the player earns All-NBA, MVP, or Defensive Player of the Year. Salary Aggregation Combining two+ outgoing salaries to match a single incoming player. Salary Cap League-wide team salary ceiling — soft, with exceptions. Salary Matching in Trades Teams over the cap must trade for incoming salary roughly matching outgoing. Second Apron Strictest spending tier (not itself a hard cap) — no mid-level exception, no combining salaries in trades, can't take back more than you send, frozen draft pick. Sign-and-Trade Free agent signs with old team and is immediately traded to new team. Stepien Rule Can't trade away own first-round picks in consecutive future drafts. Supermax Common shorthand for Designated Veteran extension — 35% of cap. Taxpayer Mid-Level Exception The smaller mid-level exception — ~$6M start in 2026-27, 2 years max, hard-caps the team at the 2nd apron. Traded Player Exception (TPE) 1-year credit that lets a team take in salary without sending any out. Two-Way Contract G League / NBA hybrid deal — capped salary, doesn't count vs. cap. Veteran Extension Add years to a veteran's current deal — first new year up to 140% of his prior salary (or his max), up to 5 total years, 8% raises with Bird rights. Waive-and-Stretch Spread waived player's remaining salary over 2x+1 years for cap relief.