Salary Cap Minutia: Why the Magic needed to decline the team options of Gary Harris and Cory Joseph now.
I explain the complicated new apron rules that forced the Magic to decline the options of Gary Harris and Cory Joseph in conjunction with the Desmond Bane trade.
The Orlando Magic have declined the $7.5 million team option of Gary Harris, and the $3.4 million team option of Cory Joseph, according to Michael Scotto. They were likely always going to decline their options to get below the aprons and luxury tax line in 2025-26.
But their acquisition of Desmond Bane opened up a Pandora's box of complicated trade rules implemented in the new CBA. Instead of waiting closer to the end of June to decline their options, they were forced to do it in conjunction with the trade.
The Magic triggered the second apron by aggregating the salaries of Kentavious Caldwell-Pope and Cole Anthony for Bane. Teams trading after the regular season ends and before the start of free agency operate with 2025-26 player salaries but under 2024-25 salary cap and apron figures.
So while their 2025-26 roster projects to be below the 2025-26 second apron after doing this trade, they actually need their 2025-26 roster to stay under the much lower 2024-25 second apron following the trade.
This is their 2025-26 cap sheet with 2024-25 cap figures. This isn't their actual cap sheet. Consider it a placeholder they must abide by through the end of June.
Options are considered to be exercised, and draft picks don't count. Also, Franz Wagner counts as $35.1 million, worth 25 percent of the 2024-25 salary cap. Since his actual $38.7 million maximum salary is technically still just a projection based on 25 percent of the 2025-26 salary cap, the 25 percent max for 2024-25 is applied.
With all that accounted for, declining the team options of Harris and Joseph leaves them just under the second apron. They may very well decline Mo Wagner's option, too. But for now, they're below the second apron and can decide on him later.
And this is the Magic's actual 2025-26 cap sheet. They actually projected to remain below next year's second apron without declining Harris and Joseph. Despite that, they need next year's salaries to stay below the 2024-25 second apron for trade purposes.
Because they satisfied the apron requirements, this trade can be processed now.
The 2025-26 salary cap will rise by 10 percent. But what if it suddenly doesn't? The frozen cap figures add an extra layer of security in case the salary cap doesn't rise as expected.
This system was implemented to prevent apron teams from circumventing the salary cap by making trades before the start of free agency that would hard cap them in the upcoming season.
For example, the Cleveland Cavaliers are currently under the second apron in 2024-25, but are projected to be above it in 2025-26. So if you're hoping the Cavaliers make an aggregation trade before the end of June, the league has safeguards in place to prevent them from doing that.
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