Explainer: The new CBA and how it affects the Oklahoma City Thunder

The new CBA was tentatively agreed between the league and the NBPA on April 1st

Since the end of the 2021-22 season, the Thunder have been judicious in using their stockpile of assets to improve the core of the team. Oklahoma City have a well-stocked cupboard of draft picks but have not frittered these assets carelessly. The Thunder sent out three first round draft picks to acquire Ousmane Dieng on draft night but that has been the only big outlay.

Out of the three natural resources that the Thunder control, players, picks and cap space, the front office has operated cautiously. They maximised low opportunity cost opportunities like the Draft and made out like bandits. OKC have added Jalen Williams, Jaylin Williams, Chet Holmgren and Ousmane Dieng on cost-controlled, long-term deals that do not significantly affect the cap sheet for the medium term.

Oklahoma City took the decision to extend Luguentz Dort on a deal worth $82.5m over a five-year period. The Dort locked in a roster spot and took away a significant portion of the Thunder’s operating cap space but Dort’s age profile and defensive qualities make the contract worthwhile.

There were no wild swings or risk-laden rolls of the dice. Presti was very measured in how he did business in the offseason and that same approach carried into the trade deadline. Oklahoma City unsentimentally moved on Darius Bazley and Mike Muscala to improve their pick portfolio.

It is a different approach from the swashbuckling, magician-like Presti that we saw in the Westbrook-George era and I think the change in approach was driven by a desire to see how the CBA played out before big decisions were made. Presti admitted as much in his exit interview in April 2022.

The Collective Bargaining Agreement has now finally seen the light of day and the first impressions are that it is a good agreement for small market team oriented around player development. I would not be as bold to say that this is a CBA written for the Thunder but there is a lot in here for the Thunder to work with.

The second salary tax apron:

Over the last ten years, the NBA’s list of team owners have changed massively. The number of owners who have a team to make a profit has significantly reduced, newer owners have bought into the league for prestige and are more than willing to spend whatever it takes to win a championship.

The disparity in spending has unbalanced the parity of the competition and so the new CBA has introduced a second salary tax apron to dissuade teams from spending excessively. The new apron kicks in $17.5m over the luxury tax line and there are now penalties for exceeding this payroll figure. The penalties include restrictions on signing buyout players, usage of the mid-level exception and trades involving first rounders in drafts seven years down the line.

The new apron should make it more difficult for wealthy, glamour teams to load a talented roster with even more quality. This should hopefully bring the Thunder’s rivals onto a more even financial footing and allow Oklahoma City to compete more effectively.

Max contract upper limit increase:

In the current CBA, there is a 120% limit set on the salary that can be offered as part of non-rookie contract extension. Dario Saric currently earns $9.2m on his current deal and therefore his new deal can only be a maximum of $11m per season. The limits are tight and do not necessarily provide enough scope to reward mid-level players who consistently make good contributions to the team.

It is a thorny situation for teams and players to navigate. A lowball offer may insult the player and they can leave for nothing as an unrestricted free agent. For the player, the 120% rule does not include enough financial reward to recognise growth year upon year.

The new CBA will move the upper limit for non-rookie contract extensions to 140% of the player’s current contract. The increased limit comes at the right time for the Thunder as it should provide Oklahoma City with a stronger hand when it comes to negotiating deals to retain players down the line.