The Sixers are reportedly willing to go deep into the luxury tax for the right addition.
After their free-agent spending spree this past offseason, the Sixers have ensured that they’ll be well over the salary cap for at least the next three seasons. Their bigger concern moving forward will be staying below the second apron, which brings a host of trade and free-agency restrictions for teams that cross it.
Much like the Boston Celtics and Phoenix Suns, they sound undeterred by that threat.
On Friday, Bleacher Report NBA insider (and Liberty Ballers alum!) Jake Fischer revealed that the Sixers are “willing to pay—add in—another piece right now” with some of the draft capital at their disposal. They aren’t just eyeing an inexpensive role player, either.
“I think the Sixers have a lot of willingness to go deep into the tax if the right guys are available and if that ownership group is believing in Daryl Morey’s front office that the player that they’re willing to pay into the tax for is someone that really does cement this title window around Joel Embiid, Paul George and Tyrese Maxey,” Fischer added.
As daunting as the second apron may sound, the Sixers have good reason to take that approach.
For one, they’re currently about $6.2 million below the second apron this season. Since they’re already above the first apron, they can’t take back more salary in a trade than they send out, which means any deal involving KJ Martin’s contract will not push them closer to the second apron. They do have one open roster spot, but they already spent their mid-level exception on Kelly Oubre Jr., so they can only hand out minimum contracts to any free agents from here on out. (Those minimum deals get prorated based on how many days are left in the season, too.)
In other words: There is no scenario in which the Sixers can cross the second apron this year. That’s noteworthy, as the harshest second-apron penalties apply to teams that stay above that line for two or more years.
Beginning this season, teams that are above the second apron are no longer allowed to trade a first-round pick that’s seven years into the future. In other words, if the Celtics and Suns finish this season above the second apron, they won’t be allowed to trade their 2032 first-round pick unless they finish below the second apron each of the next three years.
It gets worse. Any teams that stay above the second apron for two years over a four-year stretch are subject to a “draft pick penalty,” which means their first-round pick seven years into the future will automatically move to the bottom of the first round. If the Celtics and Suns stay above the second apron this season and next season—which they’re both projected to do—they’ll automatically have the two worst picks in the 2032 draft unless they dip below the second apron for at least three years in a four-year span after that.
It’s nearly impossible to project out seven months into the future in the NBA, let alone seven years. It’s hard to imagine any team being willing to stay above the second apron long enough to risk eating that draft-pick penalty. (Imagine if you won the lottery but automatically had your pick moved to the bottom of the first round instead!) Luckily, the new CBA gives teams plenty of time to get their books in order before having to worry about that.
The Celtics and Suns’ response to the second apron was basically a Stone Cold Steve Austin impersonation. They appear completely unfazed by the draft-pick restrictions at the moment, as both know that they’re firmly in a win-now window. Sound familiar?
Luckily, the salary cap is widely expected to rise by a full 10 percent in each of the next few seasons thanks to the NBA’s new national TV deals. By 2027-28, the second apron—which is at $188.9 million this season—could be north of $250 million. Meanwhile, every free-agent contract the Sixers handed out this season will increase by only 5 percent annually. Even Embiid and Maxey’s contract will only jump by 8 percent each year, and unlike the salary cap, those raises aren’t compounding.
Even if the Sixers do go over the second apron for the next few seasons, they’ll have ample opportunities to dip back below before they’re at risk of having their first-round pick automatically moved to the bottom of the draft. They’re firmly in their title window with Embiid, George and Maxey right now. There’s no more time for half-measures.
We’ll have plenty of time this season to debate whom the Sixers should be targeting with Martin’s contract and their draft picks. But according to Fischer, they’re eyeing guys like Golden State Warriors forward Jonathan Kuminga “who are on rookie deals or potentially up for a big payday where they know their incumbent team might not be willing to give that top dollar.”
Even if the Sixers acquire someone who’s up for a new deal soon, they wouldn’t go over the second apron until 2025-26 at the earliest. They’re likely willing to go over it for a two-year stretch—thus temporarily subjecting themselves to the draft-pick penalty—before dipping back below once their title window with Embiid, Maxey and George slams shut.
If (when?) the Sixers do go over the second apron, they won’t have much flexibility to build out their supporting cast. They’ll be relying on their own draft picks and free agents on minimum contracts. Martin’s contract may be their best way to add another high-upside piece to that group.
Based on Fischer’s reporting, the Sixers seem to be well aware of that. And they’re reportedly willing to rack up a huge luxury-tax bill moving forward if improves their chances of winning a title with Embiid, Maxey and George.
Unless otherwise noted, all stats via NBA.com, PBPStats, Cleaning the Glass or Basketball Reference. All salary information via Salary Swish and salary-cap information via RealGM.