NBA CBA SALARY CAP EXAM
QUESTIONS AND ANSWERS 100% PASS
What is the maximum increase allowed for the NBA salary cap and a single year? - ANS 10%
What percentage of the salary cap is the luxury tax level set up? - ANS 121.5%
What counts as team salary? - ANS Outstanding offer sheets
Retired players contracts
Minimum team salary charge
Which of the following is an example of a cap exception used for signing a player? - ANS Early
bird rights
What are the two optional hard spending limits for the 2025-26 NBA season? -
ANS $195,945,000 and $207,824,000; First Apron and Second Apron
Which of the four pillars of the NBA collective bargaining agreement - ANS Competitive and
economic parity,
Government legality
Division of revenue
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Rules of the game behind the game
How long is the term of the 2023 NBA CBA and when can you do a party terminated early? -
ANS Seven years
June 30, 2029
What percentage of basketball related income is guaranteed NBA players? - ANS 50 percent
(49-51)
What is the NBA basketball related income for the 2023-24 salary cap year? - ANS $9.938
Billion
What is an escrow account? - ANS A mechanism or 10% player salaries are held to ensure
that the players share basketball related income does not exceed 50%. Any overage is returned
to teams or players based on basketball related income balance.
How much is the first apron for the 2025-26 season? - ANS The first apron is at $195.9 million
How much is the second apron for the 2025-26 season? - ANS The first apron is set at $207.8
million
How much is the luxury tax set for the 2025-26 season? - ANS The luxury tax is $187.8 million
How much is the NBA salary cap for the 2025-26 season? - ANS The Salary Cap is $154.6
million
How much is the salary floor or the 2025-26 season? - ANS The salary floor is $139.1 million
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, What are the first level of cap exceptions? - ANS Bird, early bird, non- bird, first round,
second round, minimum
What are the second level of cap exceptions? - ANS Full ML, Tax ML, Room ML, bi-annual,
minimum
What is a trade exception? - ANS Created when a team trades a player. For teams under the
aprons, the expanded traded player exception can bring in more salary than it sent out. If a
team requires a player for a salary, less than it sent out, it gains the standard traded player
exception to acquire a player within a year, earning up to $250,000 more than the exception.
What is a sign-and-trade? - ANS A contract players sign with your current team in our traded
to another team. This requires a minimum three-year contract, with the first year guaranteed.
Teams above the apron cannot acquire a player for your sign-and-trade. Those above the
second apron can send out a player via sign-and-trade, but cannot use the outgoing salary to
bring back in return.
What is a veteran minimum contract? - ANS 1 or 2 year contract based on a scale issued by
the NBA. If a player signs for 1 year at the minimum and has more than 2 years of service their
higher salary is treated as if they had signed a veteran with 2 years of service. Undrafted player
with 0-1 YOS is counted as a two-year service veteran against a team is luxury tax and apron
salaries
What is Two-way contract? - ANS Contracts for players, with 3 or fewer years of service,
allowing them to spend time between the NBA and the G league
What is the duration of the NBA calendar? - ANS The NBA calendar begins on July 1 and ends
June 30 of the following year
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
QUESTIONS AND ANSWERS 100% PASS
What is the maximum increase allowed for the NBA salary cap and a single year? - ANS 10%
What percentage of the salary cap is the luxury tax level set up? - ANS 121.5%
What counts as team salary? - ANS Outstanding offer sheets
Retired players contracts
Minimum team salary charge
Which of the following is an example of a cap exception used for signing a player? - ANS Early
bird rights
What are the two optional hard spending limits for the 2025-26 NBA season? -
ANS $195,945,000 and $207,824,000; First Apron and Second Apron
Which of the four pillars of the NBA collective bargaining agreement - ANS Competitive and
economic parity,
Government legality
Division of revenue
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Rules of the game behind the game
How long is the term of the 2023 NBA CBA and when can you do a party terminated early? -
ANS Seven years
June 30, 2029
What percentage of basketball related income is guaranteed NBA players? - ANS 50 percent
(49-51)
What is the NBA basketball related income for the 2023-24 salary cap year? - ANS $9.938
Billion
What is an escrow account? - ANS A mechanism or 10% player salaries are held to ensure
that the players share basketball related income does not exceed 50%. Any overage is returned
to teams or players based on basketball related income balance.
How much is the first apron for the 2025-26 season? - ANS The first apron is at $195.9 million
How much is the second apron for the 2025-26 season? - ANS The first apron is set at $207.8
million
How much is the luxury tax set for the 2025-26 season? - ANS The luxury tax is $187.8 million
How much is the NBA salary cap for the 2025-26 season? - ANS The Salary Cap is $154.6
million
How much is the salary floor or the 2025-26 season? - ANS The salary floor is $139.1 million
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, What are the first level of cap exceptions? - ANS Bird, early bird, non- bird, first round,
second round, minimum
What are the second level of cap exceptions? - ANS Full ML, Tax ML, Room ML, bi-annual,
minimum
What is a trade exception? - ANS Created when a team trades a player. For teams under the
aprons, the expanded traded player exception can bring in more salary than it sent out. If a
team requires a player for a salary, less than it sent out, it gains the standard traded player
exception to acquire a player within a year, earning up to $250,000 more than the exception.
What is a sign-and-trade? - ANS A contract players sign with your current team in our traded
to another team. This requires a minimum three-year contract, with the first year guaranteed.
Teams above the apron cannot acquire a player for your sign-and-trade. Those above the
second apron can send out a player via sign-and-trade, but cannot use the outgoing salary to
bring back in return.
What is a veteran minimum contract? - ANS 1 or 2 year contract based on a scale issued by
the NBA. If a player signs for 1 year at the minimum and has more than 2 years of service their
higher salary is treated as if they had signed a veteran with 2 years of service. Undrafted player
with 0-1 YOS is counted as a two-year service veteran against a team is luxury tax and apron
salaries
What is Two-way contract? - ANS Contracts for players, with 3 or fewer years of service,
allowing them to spend time between the NBA and the G league
What is the duration of the NBA calendar? - ANS The NBA calendar begins on July 1 and ends
June 30 of the following year
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.