Punitive Changes In New CBA Not Direct Impact For Houston Rockets In 2023-2024

As has been well publicized, a new collective bargaining agreement went into effect starting with the 2023-2024 season. The hallmark of that agreement was punitive changes for big spenders, intended to facilitate league-wide parity amidst growing concerns in recent years over the formation of super-teams. The chief characteristic is a new “super apron” threshold with draconian restrictions for teams crossing its limit; it will keep the rich from getting richer.

The Houston Rockets have zero reason for concern. As of the date of this writing, the Rockets have $145.74 million worth of player salaries, fresh off their offseason spending spree when they signed veteran guards Fred VanVleet and Dillon Brooks to eye-popping long term commitments. Even then, they’re $19.55 million beneath the luxury tax threshold of $165.29 million. (Recall that during James Harden’s heyday, the team under Tilman Fertitta shed salary each year to duck below the tax line). For 2023-2024, the first apron is at $172.35 million and the second apron is at $182.79 million. This is all to say that the Rockets, entering phase 2 of their rebuild, with a roster filled primarily with players on their rookie contracts, have little reason for financial worries and penalties.

The main change carrying ramifications for Houston as a result of the new agreement, is a new minimum team salary threshold, with penalties incurred if not met by opening night as opposed to the last day of the regular season. That gave the Rockets even more incentive to spend from their ample cap space this summer rather than letting it roll over as some teams are want to do.

The squeeze won’t be felt in Houston until 2025-2026 as that is the first season of potential extensions for third year stalwarts Jalen Green and Alperen Sengun. If each player’s production continues to increase as Rockets brass hopes, each could secure maximum salaries worth 25% of the salary cap. The Rockets would then still have fellow prospects Jabari Smith Jr., Tari Eason, and Amen Thompson to later pay. If Green and Sengun proved worthy of the max, it would be a good problem to have for general manager Rafael Stone.

For now, the Rockets bide their time. With their flexibility, they could potentially facilitate deals for big spenders looking to get back under the second apron. Now would be the time to be opportunistic while others are in duress.