NBA free agency 2023: Which teams have cap space?

Bobby MarksJun 29, 2023, 10:18 PM ET
Close
Follow on X

The 2023 NBA draft is complete, which means the NBA's 30 teams will now turn their attention to free agency.

Teams can now start negotiating with more than 100 free agents available to sign with any team. However, some teams are more limited than others in what they can offer. Even after the NBA distributed projected salary cap figures that were higher than previously anticipated, only seven teams are expected to have significant cap space available this summer.

To illustrate what to expect this offseason, we've separated all 30 teams into five tiers, ranging from teams who can easily generate cap space to those who are expected to be in the luxury tax -- and potentially facing the punitive first and second apron levels in the new collective bargaining agreement. We've also highlighted which players teams in each level could be targeting, while addressing the challenges that lie ahead.

Note: We are projecting whether player and team options will be exercised or declined this week and if non-guaranteed contracts will be guaranteed. This story will be updated if a player's status changes between now and June 30; 2023 second-round picks and two-way players are not listed below.

Tier 1: Cap space teams

Is this the offseason when teams with projected cap space look to make major moves via free agency, or will they continue to use their financial flexibility to take on unwanted contracts (and add future draft compensation in the process)?

Last season four teams -- the New York Knicks, Indiana Pacers, San Antonio Spurs and Detroit Pistons -- entered free agency with cap space. Only the Knicks, who signed Jalen Brunson to a four-year, $104 million contract, made a major signing.

This season, the Pacers, Pistons and Spurs once again project to have financial flexibility, as do the Houston Rockets, Oklahoma City Thunder, Orlando Magic and Utah Jazz. The leader of that group is Houston, with a projected $66 million in room.

One trend we could see this offseason -- one already started by Oklahoma City the night of the draft -- is renting cap space for one season.

The Thunder took on Davis Bertans' $17 million salary in 2023-24 from the Dallas Mavericks to move up two slots in the draft to select guard Cason Wallace.

In the new collective bargaining agreement, teams are required to spend $122.4 million (90%) of the $136 million salary cap by the first day of the regular season. If their opening night payroll comes in lower than that, the team is required to pay the difference to the NBA, and it gets distributed to all players in the league. However, starting in 2024-25, if a team fails to meet the salary floor, then it is no longer eligible for the end-of-season cash distribution to non-taxpaying teams.

The cap space free agents: Kyrie Irving, Fred VanVleet, D'Angelo Russell, Khris Middleton, Austin Reaves (restricted), Bruce Brown, Caris LeVert, Kyle Kuzma, Cameron Johnson (restricted), Dillon Brooks, Herbert Jones (restricted), Draymond Green, P.J. Washington (restricted), Miles Bridges (restricted), Rui Hachimura (restricted), Jerami Grant, Grant Williams (restricted), Brook Lopez and Jakob Poeltl

Detroit Pistons

Projected room: $28 million

Who returns/joins: Bojan Bogdanovic, Marvin Bagley III, James Wiseman, Cade Cunningham, Jaden Ivey, Killian Hayes, Isaiah Stewart, Jalen Duren, Alec Burks, Isaiah Livers, Eugene Omoruyi (team option exercised), Ausar Thompson and Marcus Sasser

Who might be gone: Hamidou Diallo, Cory Joseph, and Rodney McGruder

Houston Rockets

Projected room: $66 million

Who returns/joins: Kevin Porter Jr., Jalen Green, Jabari Smith Jr., Jae'Sean Tate, Alperen Sengun, Tari Eason, Usman Garuba, Josh Christopher, TyTy Washington Jr., Kenyon Martin Jr., Amen Thompson and Cam Whitmore

Who might be gone: Frank Kaminsky, D.J. Augustin, Boban Marjanovic and Willie Cauley-Stein

Indiana Pacers

Projected room: $32 million

Who returns/joins: Myles Turner, Buddy Hield, Daniel Theis, T.J. McConnell, Bennedict Mathurin, Tyrese Haliburton, Aaron Nesmith, Jalen Smith, Chris Duarte, Jordan Nwora, Isaiah Jackson, Andrew Nembhard, Jarace Walker and Ben Sheppard

Who might be gone: George Hill and James Johnson

Key free agent: Oshae Brissett

Oklahoma City Thunder

Projected room: $15 million

Who returns/joins: Shai Gilgeous-Alexander, Luguentz Dort, Chet Holmgren, Josh Giddey, Kenrich Williams, Ousmane Dieng, Jalen Williams, Aleksej Pokusevski, Tre Mann, Jaylin Williams, Isaiah Joe, Jeremiah Robinson-Earl (non-guaranteed), Aaron Wiggins (non-guaranteed), Lindy Waters III (team option exercised), Davis Bertans and Cason Wallace

Who might be gone: Dario Saric

Orlando Magic

Projected room: $22 million

Note: The projected room in Orlando could increase to over $40 million but at the expense of waiving Gary Harris and Jonathan Isaac

Who returns/joins: Wendell Carter Jr., Paolo Banchero, Jalen Suggs, Franz Wagner, Cole Anthony, Chuma Okeke, Caleb Houstan, Jonathan Isaac (partial guarantee), Markelle Fultz (contract guaranteed), Gary Harris (contract guaranteed), Bol Bol (contract guaranteed), Goga Bitadze (team option exercised), Anthony Black and Jett Howard

Who might be gone: Michael Carter-Williams (team option declined), Admiral Schofield (team option declined) and Moritz Wagner

San Antonio Spurs

Projected room: $34 million

Who returns/joins: Keldon Johnson, Doug McDermott, Devonte' Graham, Khem Birch, Jeremy Sochan, Devin Vassell, Malaki Branham, Charles Bassey, Blake Wesley, Zach Collins and Victor Wembanyama

Who might be gone: Romeo Langford, Keita Bates-Diop and Sandro Mamukelashvili

Key free agent: Tre Jones

Utah Jazz

Projected room: $7.5 million

Who returns/joins: Lauri Markkanen, Collin Sexton, Jordan Clarkson, Talen Horton-Tucker, John Collins, Ochai Agbaji, Simone Fontecchio, Walker Kessler, Damian Jones, Kris Dunn (non-guaranteed), Luka Samanic (non-guaranteed), Vernon Carey Jr. (non-guaranteed), Taylor Hendricks, Keyonte George and Brice Sensabaugh

Who might be gone: Udoka Azubuike and Juan Toscano-Anderson

Tier 2: Cap space but at a cost

Two teams have a path to creating cap space, but it would cost them multiple current players whom they might want to bring back.

The Los Angeles Lakers could create up to $30 million in room, but to do so, they would have to renounce all their free agents except Austin Reaves.

The more likely scenario would see the Lakers operate as a team over the cap, giving them access to the $12.4 million non-tax midlevel exception (and allowing them to re-sign some of their current free agents in addition to Reaves).

The Sacramento Kings could create up to $18 million in space even after extending Harrison Barnes.

If Sacramento creates room, the Kings would be allowed to renegotiate the contract of Domantas Sabonis (raising his salary for 2023-24 and putting him in line for a max extension) and still have enough money leftover to target a player like Kyle Kuzma, Jerami Grant or even Draymond Green.

Los Angeles Lakers

Below the tax: $65 million

Trade exceptions: $2.7 million, $2.3 million and $1.8 million

Who returns/joins: LeBron James, Anthony Davis, Max Christie, Jarred Vanderbilt, Shaquille Harrison (non-guaranteed) and Jalen Hood-Schifino

Key free agents: Austin Reaves, Rui Hachimura, D'Angelo Russell, Lonnie Walker IV and Dennis Schroder

Who might be gone: Mo Bamba, Malik Beasley, Troy Brown Jr., Wenyen Gabriel and Tristan Thompson

Sacramento Kings

Below the tax: $50 million

Who returns/joins: De'Aaron Fox, Domantas Sabonis, Harrison Barnes, Malik Monk, Kevin Huerter, Davion Mitchell, Richaun Holmes and Kessler Edwards

Key free agent: Trey Lyles

Who might be gone: Terence Davis, Alex Len, Chimezie Metu, Matthew Dellavedova and PJ Dozier (contract not guaranteed)

Tier 3: The $12.4 million non-tax midlevel exception club

These teams are not in a position to have cap space but can use all of their $12.4 million non-taxpayer midlevel exception and still avoid the luxury tax. That will be a valuable resource for the Memphis Grizzlies, who are not expected to bring back forward Dillon Brooks and will need that exception to search for his replacement.

The $5.0 million to $12.4 million midlevel free agents: Gabe Vincent, Russell Westbrook, Coby White (restricted), Tre Jones (restricted), Ayo Dosunmu (restricted), Dennis Schroder, Patrick Beverley, Nickeil Alexander-Walker, Eric Gordon, Dennis Smith Jr., Seth Curry, Max Strus, Donte DiVincenzo, Cam Reddish, Josh Richardson, Lonnie Walker IV, Malik Beasley, Hamidou Diallo, Matisse Thybulle (restricted), Kelly Oubre Jr., Joe Ingles, Georges Niang, Christian Wood, Trey Lyles, Paul Reed (restricted), Jalen McDaniels, Jaxson Hayes and Mason Plumlee

Atlanta Hawks

Below the tax: $9.5 million

Below the first apron: $13.1 million

Below the second apron: $23.6 million

Trade exceptions: $25.3 million and $2.5 million

Who returns/joins: Trae Young, Rudy Gay, Clint Capela, De'Andre Hunter, Bogdan Bogdanovic, Dejounte Murray, Onyeka Okongwu, AJ Griffin, Saddiq Bey, Jalen Johnson, Bruno Fernando (non-guaranteed), Garrison Mathews, Vit Krejci (non-guaranteed), Tyrese Martin (non-guaranteed) and Kobe Bufkin

Who might be gone: Aaron Holiday

Charlotte Hornets

Below the tax: $56 million

Trade exception: $1.9 million

Who returns/joins: Gordon Hayward, Terry Rozier, LaMelo Ball, Cody Martin, Nick Richards, James Bouknight, Mark Williams, Kai Jones, Bryce McGowens, JT Thor (contract guaranteed), Kobi Simmons (non-guaranteed), Brandon Miller and Nick Smith Jr.

Key free agents: Miles Bridges and P.J. Washington

Who might be gone: Kelly Oubre Jr., Svi Mykhailiuk and Dennis Smith Jr.

Cleveland Cavaliers

Below the tax: $38 million

Trade exception: $3.9 million

Who returns/joins: Donovan Mitchell, Darius Garland, Jarrett Allen, Evan Mobley, Isaac Okoro, Ricky Rubio, Dean Wade, Cedi Osman (non-guaranteed), Sam Merrill (non-guaranteed) and Lamar Stevens (non-guaranteed)

Who might be gone: Danny Green, Robin Lopez, Raul Neto and Dylan Windler

Key free agent: Caris LeVert

Memphis Grizzlies

Below the tax: $24 million

Who returns/joins: Ja Morant, Jaren Jackson Jr., Marcus Smart, Luke Kennard, Steven Adams, Brandon Clarke, Ziaire Williams, Desmond Bane, Jake LaRavia, David Roddy, John Konchar, Santi Aldama, Kenneth Lofton Jr. and Xavier Tillman

Who might be gone: Dillon Brooks

Minnesota Timberwolves

Below the tax: $17.5 million

Below the first apron: $24.6 million

Below the second apron: $32.4 million

Trade exceptions: $4.4 million and $3.7 million

Who returns/joins: Rudy Gobert, Karl-Anthony Towns, Anthony Edwards, Naz Reid, Kyle Anderson, Jaden McDaniels, Wendell Moore Jr., Josh Minott, Mike Conley and Jordan McLaughlin

Key free agents: Jaylen Nowell and Nickeil Alexander-Walker

Who might be gone: Austin Rivers and Nathan Knight

New York Knicks

Below the tax: $12.7 million

Below the first apron: $15.1 million

Below the second apron: $25.1 million

Who returns/joins: Julius Randle, Jalen Brunson, RJ Barrett, Evan Fournier, Josh Hart, Mitchell Robinson, Isaiah Hartenstein, Obi Toppin, Immanuel Quickley, Quentin Grimes, Miles McBride (team option) and Jericho Sims (non-guaranteed),

Who might be gone: Derrick Rose, DaQuan Jeffries (non-guaranteed) and Isaiah Roby (non-guaranteed)

Key free agents: (player option)

Washington Wizards

Below the tax: $43 million

Trade exceptions: $12.3 million, $5.4 million and $2.7 million

Who returns/joins: Jordan Poole, Landry Shamet, Tyus Jones, Danilo Gallinari, Mike Muscala, Daniel Gafford, Delon Wright, Monte Morris, Deni Avdija, Johnny Davis, Corey Kispert, Anthony Gill, Xavier Cooks, Ryan Rollins, Patrick Baldwin Jr. and Bilal Coulibaly

Key free agent: Kyle Kuzma

Who might be gone: Kendrick Nunn and Taj Gibson

Tier 4: Watching their own free agents

The availability of the full $12.4 million non-taxpayer midlevel exception for these teams is still to be determined.

Although each franchise is positioned below the luxury tax, that could change depending on how much they spend to bring back their own free agents, including players like Cameron Johnson (Brooklyn), Kyrie Irving (Dallas), Khris Middleton (Milwaukee), Brook Lopez (Milwaukee), Jerami Grant (Portland) and Fred VanVleet (Toronto).

Dallas would not have access to the full $12.4 million non-taxpayer midlevel exception if Irving re-signs on a max contract.

Note: The hard cap triggers only if a team uses more than $5.0 million of its midlevel exception, the $4.5 million biannual exception or acquires a player in a sign-and-trade. A team can sign its own free agents using the Bird, early Bird or non-Bird exceptions and not trigger the hard cap. The NBA counts unlikely bonuses toward the first and second apron.

Brooklyn Nets

Below the tax: $13 million

Below the first apron: $16 million

Below the second apron: $27 million

Trade exceptions: $18.1 million, $4.5 million, $1.8 million and $1.6 million

Who returns/joins: Ben Simmons, Mikal Bridges, Spencer Dinwiddie, Joe Harris, Dorian Finney-Smith, Nic Claxton, Patty Mills, Cam Thomas, Day'Ron Sharpe, Royce O'Neale (contract guaranteed), Edmond Sumner (contract guaranteed), Noah Clowney and Dariq Whitehead

Key free agents: Cameron Johnson and Seth Curry

Who might be gone: Yuta Watanabe

Chicago Bulls

Below the tax: $27 million

Below the first apron: $33 million

Below the second apron: $43 million

Who returns/joins: Zach LaVine, DeMar DeRozan, Nikola Vucevic, Lonzo Ball, Alex Caruso, Patrick Williams, Andre Drummond, Dalen Terry, Marko Simonovic (contract guaranteed) and Carlik Jones (contract guaranteed)

Key free agents: Patrick Beverley, Coby White and Ayo Dosunmu

Who might be gone: Javonte Green, Derrick Jones Jr. and Goran Dragic

Dallas Mavericks

Below the tax: $52 million

Below the first apron: $59 million

Below the second apron: $69 million

Who returns/joins: Luka Doncic, Tim Hardaway Jr., Richaun Holmes, Maxi Kleber, JaVale McGee, Josh Green, Jaden Hardy, Reggie Bullock, Dereck Lively II and Olivier-Maxence Prosper

Key free agents: Kyrie Irving, Christian Wood and Dwight Powell

Who might be gone: Theo Pinson, Markieff Morris, Frank Ntilikina and Justin Holiday

Milwaukee Bucks

Below the tax: $50 million

Below the first apron: $52 million

Below the second apron: $62 million

Who returns/joins: Giannis Antetokounmpo, Jrue Holiday, Bobby Portis, Pat Connaughton, Grayson Allen, and MarJon Beauchamp

Key free agents: Khris Middleton, Joe Ingles and Brook Lopez

Who might be gone: Jae Crowder, Jevon Carter, Wesley Matthews, Thanasis Antetokounmpo, Goran Dragic and Meyers Leonard

Portland Trail Blazers

Below the tax: $41 million

Below the first apron: $48 million

Below the second apron: $55 million

Trade exception: $8.3 million and $2.6 million

Who returns/joins: Damian Lillard, Anfernee Simons, Jusuf Nurkic, Shaedon Sharpe, Keon Johnson, Trendon Watford (contract guaranteed), Jabari Walker (contract guaranteed), Jeenathan Williams (non-guaranteed), Scoot Henderson and Kris Murray

Key free agents: Jerami Grant, Matisse Thybulle and Cam Reddish

Who might be gone: Kevin Knox II, Justise Winslow and Drew Eubanks

Toronto Raptors

Below the tax: $39 million

Below the first apron: $46 million

Below the second apron: $56.5 million

Who returns/joins: Pascal Siakam, O.G. Anunoby, Gary Trent Jr., Chris Boucher, Scottie Barnes, Otto Porter Jr. (player option), Precious Achiuwa, Malachi Flynn, Christian Koloko, Thaddeus Young (contract guaranteed), Joe Wieskamp (non-guaranteed) and Gradey Dick

Key free agents: Fred VanVleet and Jakob Poeltl

Who might be gone: Will Barton and Dalano Banton

Tier 5: The first- and second-apron teams

The new CBA introduces two "apron" levels above the luxury tax line, where teams have to deal with both harsher luxury tax penalties and additional restrictions on how they can build their rosters.

For 2023-24, the salary cap is projected to be $136 million, and the luxury tax line is set to be $165 million. The apron levels will increase each year at the same rate as the salary cap. The first apron is set at $7 million above the luxury tax level in each season of the CBA (so $172 million for 2023-24) and the second apron is set at $17.5 million above the tax threshold (or $182.5 million).

There are at least seven teams projected in either apron. The Nets, Mavericks, Pelicans and 76ers could join the group if their respective teams remain intact.

Starting this offseason, teams over the second apron will not have access to the $5 million taxpayer midlevel exception. Had this rule been in place last season, the Warriors would not have been able to sign Donte DiVincenzo, and the Bucks would not have been able to sign Joe Ingles (or those players would have needed to sign with those teams for the league minimum).

A team over the first apron will still have access to the taxpayer midlevel exception. However, as in prior seasons, a team over the first apron cannot acquire a player in a sign-and trade if the acquiring salary keeps it above the apron.

The Pelicans, for example, are right at the luxury tax and $7 million below the first apron. They would be allowed to use the $5 million tax midlevel and exceed the first apron.

Teams over either apron are prevented from signing a player waived during the regular season if that player's pre-waiver salary was larger than the $12.2 million non-taxpayer midlevel exception (which could have a dramatic effect on the kinds of post-trade deadline contract buyouts and signings we've seen in recent seasons).

Trades will also get harder for these teams, as the salary matching exception will be reduced from 125% to 110% starting this offseason.

The good news is the more stringent first- and second-apron rules (additional trade and draft pick restrictions) do not start until the 2024 offseason.

The $2.5 million to $5.0 million midlevel free agents: Jevon Carter, D.J. Augustin, Matthew Dellavedova, Goran Dragic, George Hill, Aaron Holiday, Reggie Jackson, Cory Joseph, Raul Neto, Frank Ntilikina, Austin Rivers, Ish Smith, Derrick Rose, Jaylen Nowell, Will Barton, Wesley Matthews, David Duke Jr. (restricted), Danny Green, Javonte Green, Justin Holiday, Romeo Langford (restricted), Damion Lee, Shake Milton, Kendrick Nunn, Rodney McGruder, Josh Okogie, Theo Pinson, Terrence Ross, T.J. Warren, Thanasis Antetokounmpo, Juan Toscano-Anderson, Keita Bates-Diop, Troy Brown Jr., Torrey Craig, Terence Davis, Kevin Knox II (team option), Svi Mykhailiuk, Dario Saric, Justise Winslow, Derrick Jones Jr., Dylan Windler (restricted), Oshae Brissett, Jae Crowder, Jeff Green, Darius Bazley (restricted), Wenyen Gabriel, Blake Griffin, James Johnson, Frank Kaminsky, Nathan Knight (team option), Anthony Lamb (restricted), Kevin Love, Yuta Watanabe, Markieff Morris, Sandro Mamukelashvili (restricted), Moritz Wagner, Chimezie Metu, Jock Landale (restricted), Willy Hernangomez, Willie Cauley-Stein, Udoka Azubuike, Thomas Bryant, Taj Gibson, Robin Lopez, Omer Yurtseven (restricted), Montrezl Harrell, Meyers Leonard, Gorgui Dieng, Drew Eubanks, Dewayne Dedmon, DeAndre Jordan, Cody Zeller, Boban Marjanovic, Bismack Biyombo, Alex Len, Dwight Powell and Tristan Thompson