Between July 1 and July 30 of each NBA league year, a player signed using the second-round pick exception doesn’t count toward his team’s cap, but that changes as of July 31. Beginning on Wednesday, each of the second-rounders signed using that exception will begin carrying 2024/25 cap hits.
[RELATED: 2024 NBA Draft Pick Signings]
Twenty-eight of the NBA’s 30 teams are operating over the cap, so this change will really only affect two teams: Detroit and Utah.
The Pistons signed No. 37 overall pick Bobi Klintman on July 13 to a contract that will be worth $1,257,153 in 2024/25. His $1,257,153 salary hasn’t counted against Detroit’s cap up until today, but it will count starting on Wednesday. That means Detroit’s cap room will be reduced from $11,496,652 to $10,239,499.
The impact that change will have on the Pistons’ rest-of-summer plans is minimal, bordering on nonexistent. But it’s still worth noting since it slightly affects the kind of moves the team can make. For example, as of today, Detroit could accommodate a P.J. Tucker salary dump from the Clippers without sending back any salary. As of Wednesday, that wouldn’t be possible.
Interestingly, the Jazz have yet to sign No. 32 overall pick Kyle Filipowski, so their cap situation will remain unchanged on Wednesday. With reported deals for Drew Eubanks and Johnny Juzang still not official yet either, Utah could create up to about $35MM in space by renouncing various cap holds.
I expect the Jazz are waiting to resolve their Lauri Markkanen situation – either via trade or renegotiation-and-extension – before signing Filipowski and formally finalizing their other agreements. Trading Markkanen could mean taking on additional salary in a deal, while renegotiating his contract could require up to $24MM+ in cap room to bump his 2024/25 salary to the max.
Having resolution on Markkanen – which could happen in about a week when he becomes renegotiation-eligible – will give Utah’s front office a better sense of its cap situation going forward, allowing the team to move forward with its other business.
Pistons would ask too much to take on Tucker at full freight. Sending him to the Rockets (Tate) or Wizards (Davis+PBJ) should only cost a 2nd or a 2031 swap of 1sts with the Clippers getting back a 2nd, and that would be enough to get LA out of the tax.