ULTIMATE NBA AGENT QUESTIONS & ANSWERS
Salary Cap Increase - Answers :Is the salary cap and tax level allowed to increase more
than 10% each season? A. Yes B. No
Salary Cap Decrease - Answers :Can the salary cap decrease from the prior season?
A. Yes B. No
Counts Against Salary Cap - Answers :What counts against the salary cap? A. Free
agent hold B. Player salaries C. Salaries that were terminated D. All of the above
JaVale McGee Set-Off Amount - Answers :JaVale McGee was waived and stretched by
the Dallas Mavericks. A day after clearing waivers, McGee signed a one-year
$3,196,448 with Sacramento. What was the set-off amount for each season? A.
$140,525 B. $139,468 C. $162,000 D. $697,242
Luxury Tax Brackets - Answers :The luxury tax brackets increase as the salary cap
grows? A. True B. False
Tax Brackets Adjustment - Answers :Starting with the 2025-26 season, the tax brackets
are adjusted? A. True B. False
Bonuses and Salary Cap - Answers :Nikola Jokic and Aaron Gordon earned bonuses in
their contract for team success during the 2023 playoffs. Did those bonuses apply
toward the salary cap or luxury tax at the end of the season? A. Salary Cap B. Luxury
Tax
Luxury Tax Penalty - Answers :A team is $4 million over the luxury tax but is not a
repeater tax team. How much of a tax penalty do they owe at the end of the 2024-25
season? A. $4 million B. $6 million C. $5.5 million D. $10 million
New York Knicks Tax Penalty - Answers :The New York Knicks are $8,371,045 over the
luxury tax. They are not a repeater tax team. What is their tax penalty at the end of the
regular season? A. $15.5 million B. $10.2 million C. $13.4 million D. $8.2 million
Tax Apron Growth - Answers :For the 2024-25 Salary Cap Year and each subsequent
Salary Cap Year, the Tax Apron Amount and Second Tax Apron Amount will grow over
their prior Salary Cap Year amounts at the rate of growth in the Salary Cap. A. True B.
False
Signing Waived Players - Answers :Teams over the first and second are allowed to sign
a player waived during the regular season who had a prior salary of the non-tax
midlevel exception or more. A. True B. False
, Acquiring Players Over Apron - Answers :For the 2024 offseason and beyond, a team
over the first and second apron can acquire a player within what percentage. The post
transactional salary exceeds either apron. A. 150% B. 110% C. 100% D. 125%
Aggregating Contracts Over Second Apron - Answers :For the 2024 offseason and
beyond, a team over the second apron is allowed to aggregate contracts to send out in
a trade if the post transaction salary exceeds the second apron. A. True B. False
Sign-and-Trade Over First Apron - Answers :A team over the first apron is allowed to
acquire a player in a sign-and-trade. A. True B.
Tax midlevel exception - Answers :A team over the luxury tax but below the first apron
is allowed to use the tax midlevel exception.
Biannual exception - Answers :A team over the first apron can use the biannual
exception.
Tax midlevel exception eligibility - Answers :A team is allowed to use the tax midlevel
exception if it exceeds the second apron.
Cash in trade rule - Answers :Starting with the 2024 offseason, a team over the second
apron is allowed to send cash in a trade.
Pre-existing trade exception - Answers :Starting with the 2024 offseason, a team over
the first and second apron is allowed to use a pre-existing trade exception.
First-round pick freeze year - Answers :If a team is over the second apron in 2024-25,
their first-round pick is frozen in 2029.
First-round pick movement year - Answers :If a team is over the second apron in 2024-
25, 2025-26, 2026-27, their first-round pick moves back to the end of the first round in
2032.
Minimum salary floor requirement - Answers :By the first day of the regular season, a
team must have a minimum salary of 85% of the salary cap.
Luxury tax distribution - Answers :Starting with the 2024-25 season, a team below the
minimum salary floor will receive a luxury tax distribution.
Minimum floor requirement calculation - Answers :The Salary cap for the 2024-25
season is $140.58 million. A team with $102 million in committed salary needs to reach
$120.58 million to meet the minimum floor requirement.
Charlotte Hornets Cap Space - Answers :Starting on July 1, the Charlotte Hornets had
$16 million in cap space. They signed John Smith to a one-year $16 million contract.
Salary Cap Increase - Answers :Is the salary cap and tax level allowed to increase more
than 10% each season? A. Yes B. No
Salary Cap Decrease - Answers :Can the salary cap decrease from the prior season?
A. Yes B. No
Counts Against Salary Cap - Answers :What counts against the salary cap? A. Free
agent hold B. Player salaries C. Salaries that were terminated D. All of the above
JaVale McGee Set-Off Amount - Answers :JaVale McGee was waived and stretched by
the Dallas Mavericks. A day after clearing waivers, McGee signed a one-year
$3,196,448 with Sacramento. What was the set-off amount for each season? A.
$140,525 B. $139,468 C. $162,000 D. $697,242
Luxury Tax Brackets - Answers :The luxury tax brackets increase as the salary cap
grows? A. True B. False
Tax Brackets Adjustment - Answers :Starting with the 2025-26 season, the tax brackets
are adjusted? A. True B. False
Bonuses and Salary Cap - Answers :Nikola Jokic and Aaron Gordon earned bonuses in
their contract for team success during the 2023 playoffs. Did those bonuses apply
toward the salary cap or luxury tax at the end of the season? A. Salary Cap B. Luxury
Tax
Luxury Tax Penalty - Answers :A team is $4 million over the luxury tax but is not a
repeater tax team. How much of a tax penalty do they owe at the end of the 2024-25
season? A. $4 million B. $6 million C. $5.5 million D. $10 million
New York Knicks Tax Penalty - Answers :The New York Knicks are $8,371,045 over the
luxury tax. They are not a repeater tax team. What is their tax penalty at the end of the
regular season? A. $15.5 million B. $10.2 million C. $13.4 million D. $8.2 million
Tax Apron Growth - Answers :For the 2024-25 Salary Cap Year and each subsequent
Salary Cap Year, the Tax Apron Amount and Second Tax Apron Amount will grow over
their prior Salary Cap Year amounts at the rate of growth in the Salary Cap. A. True B.
False
Signing Waived Players - Answers :Teams over the first and second are allowed to sign
a player waived during the regular season who had a prior salary of the non-tax
midlevel exception or more. A. True B. False
, Acquiring Players Over Apron - Answers :For the 2024 offseason and beyond, a team
over the first and second apron can acquire a player within what percentage. The post
transactional salary exceeds either apron. A. 150% B. 110% C. 100% D. 125%
Aggregating Contracts Over Second Apron - Answers :For the 2024 offseason and
beyond, a team over the second apron is allowed to aggregate contracts to send out in
a trade if the post transaction salary exceeds the second apron. A. True B. False
Sign-and-Trade Over First Apron - Answers :A team over the first apron is allowed to
acquire a player in a sign-and-trade. A. True B.
Tax midlevel exception - Answers :A team over the luxury tax but below the first apron
is allowed to use the tax midlevel exception.
Biannual exception - Answers :A team over the first apron can use the biannual
exception.
Tax midlevel exception eligibility - Answers :A team is allowed to use the tax midlevel
exception if it exceeds the second apron.
Cash in trade rule - Answers :Starting with the 2024 offseason, a team over the second
apron is allowed to send cash in a trade.
Pre-existing trade exception - Answers :Starting with the 2024 offseason, a team over
the first and second apron is allowed to use a pre-existing trade exception.
First-round pick freeze year - Answers :If a team is over the second apron in 2024-25,
their first-round pick is frozen in 2029.
First-round pick movement year - Answers :If a team is over the second apron in 2024-
25, 2025-26, 2026-27, their first-round pick moves back to the end of the first round in
2032.
Minimum salary floor requirement - Answers :By the first day of the regular season, a
team must have a minimum salary of 85% of the salary cap.
Luxury tax distribution - Answers :Starting with the 2024-25 season, a team below the
minimum salary floor will receive a luxury tax distribution.
Minimum floor requirement calculation - Answers :The Salary cap for the 2024-25
season is $140.58 million. A team with $102 million in committed salary needs to reach
$120.58 million to meet the minimum floor requirement.
Charlotte Hornets Cap Space - Answers :Starting on July 1, the Charlotte Hornets had
$16 million in cap space. They signed John Smith to a one-year $16 million contract.
