Veteran guard Seth Curry spent his training camp with the Golden State Warriors, practicing alongside his brother Stephen, but just before the regular season commenced, he was waived by the team. Despite this, there is a collective understanding among fans and analysts that this separation may be temporary.
The unique situation surrounding Curry and the Warriors stems from the recent changes in the NBA collective bargaining agreement, specifically the introduction of hard caps. Historically, the NBA’s salary cap system has operated as a soft cap, allowing franchises more flexibility in managing their payroll. However, the new CBA implemented hard caps that impose stricter limits on spending for teams, particularly those that exceed certain payroll thresholds.
Owners of high-spending teams, such as the Warriors, initially pressed for a hard cap during CBA negotiations, but the players’ association opposed the idea. Ultimately, a compromise resulted in a system that resembles a soft cap while allowing hard cap triggers at specific spending points. This framework has created various tiers of teams, each with different resources available for roster improvements based on their spending.
There are key distinctions among teams under this new system. For instance, “cap space teams” can utilize available cap funds plus certain exceptions, while teams falling between the first and second aprons have reduced access to free agent tools. Notably, those over the second apron can only retain their own players using Bird rights and may sign new additions to minimum contracts.
One significant flaw of this system is that many actions taken by front offices inadvertently trigger hard caps, which complicates negotiations and transactions throughout the league. This has made navigating trades and roster moves increasingly challenging, as almost every trade winds up imposing a hard cap, requiring creative solutions to accommodate player movements.
Additionally, scenarios involving unlikely bonuses have spotlighted the issues associated with hard caps. The Dallas Mavericks faced a harsh reality last season when a series of injuries forced them to play with a severely depleted roster. While they qualified for hardship exemptions, they were unable to utilize them due to the constraints of the hard cap, showcasing the pitfalls of this structure.
In the case of Seth Curry, the Warriors utilized the taxpayer midlevel exception to sign Al Horford, which led to their hard cap being set at the second apron for the upcoming season. Even after finalizing a deal with Jonathan Kuminga, the team lacked sufficient cap space to sign Curry to a full-season minimum contract right away. This carefully calculated approach aims to prevent situations similar to what the Mavericks experienced, as the Warriors seek every opportunity to ensure they remain compliant with the strict financial limitations in place.
The Warriors are not the only team grappling with these hard cap challenges; several others, including the Houston Rockets and the LA Clippers, are teetering near hard cap thresholds themselves. As the NBA navigates this newly adjusted financial landscape, there is hope that future agreements can address some of the more cumbersome elements of the current system, ultimately leading to a more equitable playing field for all franchises.