One of the most complicated parts of the NBA for fans is the ins and outs of team building during the offseason. There are complex rules about what a team can and can’t do with certain players, how much a team can offer a free agent, what happens when a team goes into the luxury tax and much more.
I write a lot about the particulars of these rules, but one of the common requests I’ve received at BSJ is to simplify an explanation of these tricky CBA rules and terms and how they apply to the Celtics. Over the upcoming month, we will take a weekly look at some of the common phrases and rules I used that are involved in the collective bargaining agreement and try to make them easier to understand so it’s easier to break down the options the Celtics or another team has with their players in any offseason.
We begin today with another term that had a major impact on the Celtics most recent offseason: Cap holds. It’s very connected to Bird Rights, a topic we explored yesterday and influences a team every offseason when they are considering opening up room under the salary cap.
Part 1: Understanding Bird Rights: What they mean and how they impact the Celtics' future
What is a cap hold?
A cap hold is essentially a placeholder for any free agent on a team’s roster that counts towards the salary cap in the offseason. Any calculation involving a team’s cap room in an offseason includes the cap holds of any players are hitting free agency unless they are renounced (we will get to that later).
How are cap holds determined?
There is a system in place depending on the player’s previous salary and what kind of free agent he is. We covered the various types of free agents yesterday (Bird Rights, Non-Bird Rights, Early Bird Rights) and these are broken down, even more, when it comes to cap holds.
What’s the cap hold for each type of free agent?
- Bird Rights Free Agent (not coming off rookie deal): 150 percent of previous salary
- Bird Rights Free Agent (coming off rookie deal): 300 percent of previous salary
- Early Bird Free Agent: 130 percent of his previous salary
- Non-Bird Free Agent: 120 percent of his previous salary
Under contract for 2020-21
Kemba Walker ($34.3 million)
Gordon Hayward ($34.1 million)
Marcus Smart ($13.4 million)
Jayson Tatum ($9.8 million once team option is picked up in October)
Romeo Langford ($3.6 million)
Vincent Poirier ($2.6 million)
Grant Williams ($2.5 million)
Robert Williams ($2.0 million once team option is picked up in October)
Semi Ojeleye ($1.8 million non-guaranteed)
Carsen Edwards ($1.5 million)
Guaranteed money committed if Hayward opts out: $72.8 million to nine players
Guaranteed money committed if Hayward opts in: $106.9 million to 10 players
Projected salary cap for 2020-21: $117 million