Nets' issues this offseason: Salary cap, luxury tax, draft capital
Nets general manager Sean Marks. Credit: Ed Quinn
The Nets’ 30-point loss Sunday to the Kings reminded that playing for next season means tough losses will come this season.
Rookies Noah Clowney and Jalen Wilson started together for the first time and took their lumps against a physical Kings team. Yet it was good education against another team that’s playing for playoff seeding.
“These minutes are crucial for their learning growth,” interim coach Kevin Ollie said. “Getting some valuable minutes so they can have some great experiences coming back for next year.”
Added Mikal Bridges: “Just building blocks, just getting minutes for everybody. Being on the same court with these young guys so next year it won't be like we never played together."
But looking ahead, the Nets’ path to improvement won’t be immediate even after hiring a new coach this summer. Almost all of the team’s significant contributors are under contract next season. It’s also hard to add key pieces with the assets or cap space they have.
This summer’s draft won’t help since both of the Nets’ picks are owned by the Rockets. As for future draft picks? The Nets don’t control their own pick until 2028 and don’t have a first-round pick in 2026 because of the James Harden trade.
They do have first-round picks in 2025 and 2027 from the Suns. But the Nets can’t trade those picks unless they acquire another first-round pick those same years because of the Stepien Rule, which says teams must have at least one first-round pick in every other draft.
They do have five second-round picks through 2028. Yet while the Nets have draft capital, it’s hard to see how it helps right away.
What about free agency? Per ESPN, the salary cap is projected to be at $141 million next season with the luxury tax line expected around $172 million. The Nets currently have 11 of 15 roster spots under contract next season for around $134.1 million.
They’re expected to re-sign Nic Claxton, who will get a significant raise. Keith Smith, a salary cap expert for Spotrac, told Newsday last month that he projected Claxton could command between $20-25 million per year.
That would leave little cap space to sign players while staying under the luxury tax. That’s important because the Nets want financial flexibility in 2025.
They were over the luxury tax from 2020-23 and paid a steep bill each season. They were under it this season but still paid the "repeat offender" tax which applies to teams that exceed the luxury tax line three seasons in a four-year span.
If the Nets stay under next season, they won’t carry the “repeat offender” label and will have more wiggle room for free agency next summer, especially when Ben Simmons’ expiring $40.3 million contract is off the books.
But what it means now is the Nets aren’t in position to make sweeping changes, barring any trades. It also means their ceiling isn’t much higher in 2024-25 after missing the playoffs this season.
So while the players try to end the season on a high note, there’s a lot more lifting needed by the front office to convince fans to be hopeful on the franchise’s direction.
Evan Barnes covers the Nets for Newsday. He previously covered Memphis football and the Memphis Grizzlies and also covered prep sports in Los Angeles.
