Evaluating Rockets' Salary Cap Situation This Offseason

Houston has room to make an impactful signing or trade given its salary cap situation.

Mar 21, 2024; Houston, Texas, USA; Houston Rockets guard Jalen Green (4) drives to the basket against Chicago Bulls forward DeMar DeRozan (11) and Chicago Bulls guard Alex Caruso (6) during the third quarter at Toyota Center. Mandatory Credit: Erik Williams-USA TODAY Sports / Erik Williams-USA TODAY Sports

The Houston Rockets haven't made any major moves this offseason, but they have the room to do so. The organization brought back Aaron Holiday, Nate Hinton, Jermaine Samuels, and Jeenathan Williams on a combined five-year, $13.6 million total salary. With minimal moves made, there is still room for a splash to be made.

What is the Rockets' salary cap situation in the first year where the first and second aprons have consequences on teams' rosters?

The new CBA has come into affect this offseason with the implementation of the first and second aprons. Non-taxpaying teams will receive fines, however teams that go over that first or second apron will receive penalties that affect how organizations trade and build their roster.

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New NBA salary cap is $140,588,00
Luxury Tax: $170,814,000
First Apron: $178,132,000
Second Apron: $188,931,000

— Adrian Wojnarowski (@wojespn) June 30, 2024

First apron penalties include: being unable to acquire a player via sign-and-trade if they then go above the first apron, salaries in trades must match within 110% (a drop from the 125% for teams not above the first apron), and being unable to sign a waived player from the regular if their salary was over the $12.2 million midlevel exception.

Second apron penalties include: being unable to include cash in trades, first-round picks seven years away are untradable, no trade exceptions can be used from multiple players' salaries, no previous trade exceptions can be used, and the final one being a team's first-round is moved to the end of the round if they stay in the second apron for three of five seasons.

For the Rockets, this works in their favor due to giving out just over $168 million in salaries, and this is after signing rookie Reed Sheppard. They have about $11 million in first apron space, and about $22 million in second apron space, which means they could still bring a solid veteran or two to help them compete for the playoffs.

Notable free agents Houston could target while still potentially staying under the first apron include Kyle Lowry, Luke Kennard, and Evan Fournier. If the organization wanted to bring an elite scorer to really make a push, DeMar DeRozan and Miles Bridges are still available, however their contracts would likely push Houston over the second apron.

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