A day after the Boston Celtics ownership group agreed to sell the team, current owner Wyc Grousbeck discussed a major challenge facing NBA franchises. In a radio interview, Grousbeck stated his belief that no NBA team will be willing to endure the severe penalties associated with exceeding the second luxury tax apron threshold.
Grousbeck asserted, “You can`t remain in the second apron. Nobody will. I predict that for the next 40 years of the CBA, no team will stay in the second apron for more than two years.”
Boston is currently above the second apron, and their roster costs could surpass $400 million next season, even without re-signing free agents Al Horford and Luke Kornet. However, Grousbeck emphasized that the financial cost is not the primary concern. The real issue lies in the team-building restrictions implemented in the league`s latest collective bargaining agreement.
“It`s not just the luxury tax bill,” Grousbeck explained. “It`s the basketball penalties. The new CBA was designed by the league to deter teams from excessive spending. They decided that financial penalties alone weren`t enough, and introduced significant basketball-related restrictions.” He contrasted this with European soccer leagues, noting the NBA`s focus on competitive balance through roster limitations.
These basketball penalties include restrictions on draft picks. A team above the second apron at the end of a season faces having their first-round draft pick seven years out frozen, making it untradeable. Consecutive seasons above the apron can lead to the pick being moved to the end of the first round. Second-apron teams also lose access to the mid-level exception, trade aggregation, and other roster-building tools.
These limitations are in addition to restrictions faced by teams exceeding the first apron, such as limitations on sign-and-trades and access to certain exceptions and the buyout market.
Grousbeck suggested that these concerns may have influenced the Los Angeles Clippers` decision to let Paul George leave. He reiterated that these penalties place an even greater importance on having a brilliant and fortunate general manager, like Boston`s Brad Stevens.
Grousbeck praised Stevens, the reigning Executive of the Year, for his role in building the championship team and expressed confidence in Stevens` ability to navigate these new challenges and extend Boston`s competitive window.
Looking ahead to next season, the significant salaries of players like Jaylen Brown, Jayson Tatum, Jrue Holiday, Kristaps Porzingis, and Derrick White highlight the financial pressures. While Stevens` exact offseason plans remain unclear, Grousbeck acknowledged that the new CBA makes it challenging for teams to maintain highly expensive rosters long-term.
Finally, Grousbeck anticipated the team sale to be finalized around July, noting the timing around the playoffs and league announcement schedules.
Jasper Hawthorne