The NBA salary cap for 2025-26 is ~$141M. But it's a "soft" cap — teams can exceed it using exceptions. The luxury tax threshold is ~$171M. Go over that, and you pay $1.50-$4.75 for every dollar over (it increases with repeat offenses).
Named after Larry Bird. If you've had a player for 3+ years, you can re-sign them for any amount regardless of cap space. This is why teams trade for stars with 1 year left — they get Bird Rights and can offer the most money. It's the most important rule in NBA free agency.
Players can earn 25% of the cap (0-6 years experience), 30% (7-9 years), or 35% (10+ years). Supermax: 35% for players with 8-9 years who make All-NBA. That's why Jokic makes $51M/year. The supermax rewards loyalty but can cripple teams if the player declines.
Mid-Level Exception (MLE): ~$12.8M. Every team over the cap gets this. It's how contenders sign solid role players.
Bi-Annual Exception: ~$4.5M every other year. Small but useful for adding depth.
Minimum contracts: Always available. Veterans take minimums to ring-chase. LeBron's teammates are often on minimums.
The second apron ($189M) is the new hard cap. Teams above it can't use most exceptions, can't aggregate salaries in trades, and lose draft pick flexibility. It's designed to prevent super-teams. The Warriors' dynasty would be impossible under the new rules.