ESPN salary experts revealed: Why did the Clippers renew their contracts with George and the Bucks cut Lillard this year

became the NBA's lightning rod: the second luxury tax line

introduced a salary cap in the 2023 collective bargaining agreement, but it was not implemented gradually until last offseason. The second limit on the compensation cap smooths out the playing field by reducing the roster mechanism for high-spending teams at or exceeding the threshold.

In other words, teams exceed their competitors’ spending, stacking up rosters, or adding an All-Star player to a trade or free agent will have an impact on future roster building.

A general manager of the Eastern Conference told ESPN: "The second rule does not allow teams to jump to the first place when forming a roster. If you include a highly paid veteran in the trade, your roster schedule will be shortened."

What happened in 2023 and this summer are perfect examples of this rule doing its desired effect.

Kevin Durant and Bradley Beal were traded to the Phoenix Suns before the strict second luxury tax line rules were implemented. The Boston Celtics then acquired Christaps Porzingis and Ru Holliday. The Milwaukee Bucks then acquired Damian Lillard. A month later, the Los Angeles Clippers will trade James Harden.

These six transactions are not allowed under the current rules.

Two years later, Durant, Porzingis and Hollidi were traded. Bill is discussing how to terminate the contract and waive it. The Bucks had to give up Lillard, and the remaining $113 million contract will be paid in installments over five seasons. The move cleared the way for Milwaukee to sign Miles Turner. Harden is still in the Clippers' roster, but Los Angeles chose not to renew Paul George that year due to potential luxury tax restrictions. Brad Stevens, president of basketball operations at Celtics, told reporters last week: "We have limited tools to use around the second luxury tax line." These limited tools include the inability to send cash in a transaction, the use of up to $5.7 million in non-tax mid-level exception clauses, and, most importantly, 100% of the "Trade Player Exception clauses" and "Comprehensive Contracts" cannot be exceeded in transactions. If a team ends in the second round, they can’t trade a first round pick in seven years. If a team exceeds the second stop in three of four seasons, the same first stop may also be moved back to the end of the second round.

However, there is no rule forbidding a team to retain their players. The Cleveland Cavaliers re-signed a four-year, $38 million contract with Sam Merrill, which, although it has exceeded the luxury tax ceiling, has instead increased the team's luxury tax penalty and put them further into a situation beyond the luxury tax ceiling. Those expensive squads with underperforming or major injuries can only improve in free agents or trades, with the recent Boston and Phoenix being one example.