Point guard Tyus Jones has been a bright spot for the Phoenix Suns this season, ranking second in the NBA in assist-to-turnover ratio.[2] Taking care of the basketball at an elite level is nothing new for the 10-year veteran: he holds the two all-time best records for assist-to-turnover ratio in a single season.[3] Jones has ranked top three in the league for this statistical category in nine out of his 10 years in the league, including five consecutive seasons in which he finished first.[4] Throughout his 2023-2024 season with the Washington Wizards, Jones posted career highs in nearly every major statistical category.[5] Yet this past offseason, he signed a minimum deal with the Suns—a move that raises an important question: how did a player of his caliber end up on such a modest contract?
Jones openly expressed that his desire to compete for a championship factored into his decision to land in Phoenix.[6] However, his signing also highlights a broader trend in today’s NBA. The league’s new Collective Bargaining Agreement (CBA), agreed to in 2023, has reshaped team dynamics, particularly for players in the league's "middle class," whose opportunities to sign more lucrative contracts are being squeezed by first and second apron constraints.
What is the NBA Salary Cap and Luxury Tax?
The NBA's salary cap is calculated as a percentage of the league’s Basketball Related Income (BRI) for each respective year. Generally, teams are not allowed to exceed the cap when compiling their rosters. However, salary cap exceptions, such as the mid-level exception (MLE), bi-annual exception (BAE) or minimum salary exception, permit teams to go beyond the cap under certain conditions.[7] These mechanisms ensure that teams can maintain roster depth even when operating close to or above the salary cap.
The NBA luxury tax line is a threshold set above the salary cap. Teams exceeding the luxury tax line must pay a financial penalty, with escalating rates based on how far a team’s total payroll surpasses the line.
What is the NBA’s “Middle Class?”
The NBA's middle class generally consists of valued role players whose production warrants greater than a minimum contract, but less than a maximum salary on the free agency market. The value of a player’s minimum salary exception varies based on a player's years of experience in the league, as well as the NBA’s salary cap during the relevant year.[8] Maximum salaries are typically reserved for superstar players such as LeBron James or Nikola Jokić. A player's maximum salary depends on their years of experience and accolades; it typically ranges from 25% to 35% of the annual salary cap.[9]
NBA middle-class players generally earn between 3% and 15% of the league's annual salary cap, depending on their role, production, and market value. The MLE is one of the most used tools to sign middle-class players.[10] Each team is granted only one of the three MLEs (Non-Taxpayer, Taxpayer, or Room) based on its salary cap situation each year. However, a team may split the allocated amount of its MLE to sign multiple players, so long as the aggregate of the contracts do not exceed the value of the MLE.
What are the First and Second Aprons?
The 2023 CBA introduced several changes to the NBA’s financial structure, with the implementation of the first and second aprons being among the most significant. These aprons act as thresholds above the luxury tax line that impose increasingly stringent restrictions on teams that exceed them, with the goal being to prevent the formation of super-teams and maintain competitive balance across the league.[11] The first apron (set about $7 million above the tax line), and the second apron (about $17.5 million above the tax line), are designed to restrict high-spending teams and promote greater parity across the league.
These restrictions act as powerful deterrents, forcing front offices to carefully consider the financial implications of each decision they make. The fear of being handcuffed by these rules has led many teams to shy away from spending beyond the aprons, even when talent acquisition could strengthen their rosters.
What is the Trickle-Down Effect of the Aprons on the Middle Class?
Due to the consequences of exceeding either or both apron levels, the MLE has become less appealing and accessible to teams across the league. Of the 30 teams in the league, only 10 signed a player using any portion of a MLE during the 2024 offseason. Teams operating under the salary cap have access to the full MLE—which offers the highest value for signing free agents—but are hesitant to use it, as doing so could push them near or above the first apron and limit their financial flexibility. For teams above the first apron, a smaller version of the MLE—the taxpayer MLE—is still available. Yet this exception is far less lucrative for middle class free agents to accept. Once a team surpasses the second apron, they lose the ability to use any form of the MLE.[12]
Of the approximate $3.8 billion in player salaries signed away during the 2023 summer offseason, about 64% of it was split among just 19 players.[13] This growing disparity underscores the challenges faced by middle-class players in today’s NBA. While top-tier stars continue to command maximum salaries, players such as Tyus Jones have found it increasingly difficult to secure contracts that reflect their contributions on the court.[14]
Despite shooting nearly 40% from three-point range throughout the 2023-2024 season, guard Gary Trent Jr. settled for a one-year minimum deal with the Milwaukee Bucks this past offseason. Trent Jr. previously signed a three-year, $51.8 million deal with the Toronto Raptors. Monte Morris and Delon Wright also had to settle for minimum-salary contracts after earning at least $8 million last season. Malik Beasley, who averaged close to 13 points per game with the Los Angeles Lakers and Utah Jazz throughout the 2022-2023 season, settled for a one-year minimum contract with the Bucks for 2023-2024.
Shifting Strategies: The Future of the NBA's Middle Class on Expiring Contracts
If the trend of fewer teams utilizing the MLE continues, it could alter how middle-class players approach their careers. Many more players on expiring contracts may be more inclined to sign extensions rather than testing the uncertainty of free agency. Others may seek trades to teams more interested in signing them to long-term deals when there’s doubt about securing a MLE during the following offseason. Meanwhile, players like Jones may continue to accept minimum deals with the hope of putting together superb seasons, reentering the market the following offseason, and securing a more lucrative deal.
Pasquale Tartaro (staff writer) is a 2L at Villanova University Charles Widger School of Law. He is a member of Basketball Negotiation Team and is interested in intellectual property, employment and contract law. After law school, he hopes to work in the sports and entertainment industry.
References:
[1] Photo by Emanuel Ekström on Unsplash.
[2] See https://www.teamrankings.com/nba/player-stat/assist-to-turnover-ratio?rate=season-totals&season_id=213.
[3] Jeff Zillgit, How Tyus Jones became one of the most underrated point guards in the NBA (Apr. 11, 2024) USA Today https://www.usatoday.com/story/sports/nba/2024/04/11/tyus-jones-history-journey-washington-wizards/73281098007/
[4] See https://www.teamrankings.com/nba/player-stat/assist-to-turnover-ratio?rate=season-totals&season_id=213.
[5] See https://www.basketball-reference.com/players/j/jonesty01/splits/2024. Jones set career highs in points per game (12.0), assists per game (7.3), rebounds per game (2.7), field-goal percentage (48.9%), 3-point percentage (41.4%) and minutes per game (29.3).
[6] Shane Young, Tyus Jones Details Why He Chose The Phoenix Suns In Free Agency (Aug. 1, 2024) Forbes https://www.forbes.com/sites/shaneyoung/2024/08/01/tyus-jones-details-why-he-chose-the-phoenix-suns-in-free-agency (“’The opportunity to win,’ Jones said regarding his decision to join the Suns. ‘I’m a competitor and I want to win. I want to compete and a chance to lead. So, the role that was offered here, it’s hard to pass up’”).
[7] See 2023 NBA Collective Bargaining Agreement, Article VII, Section 6 https://imgix.cosmicjs.com/25da5eb0-15eb-11ee-b5b3-fbd321202bdf-Final-2023-NBA-Collective-Bargaining-Agreement-6-28-23.pdf.
[8] See https://www.spotrac.com/nba/cba/minimum. For example, a rookie’s minimum salary for the 2024-2025 season is $1,272,869, whereas the minimum salary for a player with seven years of experience league is §3,080,917.
[9] See 2023 NBA Collective Bargaining Agreement, Article II, Section 7 https://imgix.cosmicjs.com/25da5eb0-15eb-11ee-b5b3-fbd321202bdf-Final-2023-NBA-Collective-Bargaining-Agreement-6-28-23.pdf. Players with 0-6 years of experience can earn up to 25% of the cap, those with 7-9 years up to 30%, and those with 10+ years up to 35%. Additional bonuses, such as being named to All-NBA teams, can qualify players for "supermax" contracts.
[10] See 2023 NBA Collective Bargaining Agreement, Article VII, Section 6 https://imgix.cosmicjs.com/25da5eb0-15eb-11ee-b5b3-fbd321202bdf-Final-2023-NBA-Collective-Bargaining-Agreement-6-28-23.pdf. The NBA’s CBA provides for three different MLEs depending on how far above or below a team is under the salary cap (the Taxpayer MLE, the Non-Taxpayer MLE, and the MLE for teams with room under the salary cap). Depending on a team’s salary cap level, the three kinds of MLE for the 2024-2025 could provide a player with 3.68%, 5.68% and 9.12% of the cap for the 2024-2025 season.
[11] See 2023 NBA Collective Bargaining Agreement, Article VII, Section 2(e) https://imgix.cosmicjs.com/25da5eb0-15eb-11ee-b5b3-fbd321202bdf-Final-2023-NBA-Collective-Bargaining-Agreement-6-28-23.pdf. Teams exceeding the first apron face restrictions such as the inability to use the taxpayer MLE, sign buyout players, or participate in certain trades. Those crossing the second apron are restricted even further, with limitations such as not being able to send out cash in trades, the inability to aggregate salaries in trades, and forfeiting certain future draft picks.
[12] See Id.
[13] Kristian Winfield, The NBA’s new CBA is squeezing the league’s middle class (Aug. 1, 2023) New York Daily News https://finance.yahoo.com/news/nba-cba-squeezing-league-middle-093000347.html.