NBA Contract Extension & Cap Impact Lab
Analyze multi-year extension terms, 8% Bird raise increments, mutual/player options, trade moratorium timing, and luxury tax apron trajectories in real time.
Pelle Larsson • Miami Heat Extension Breakdown
| Season | Cap Hit ($) | Raise | % of Cap | Status / Type | 1st Apron Buffer | 2nd Apron Buffer |
|---|
Bird Rights & 8% Raises
Under the NBA Collective Bargaining Agreement, teams holding Full Bird rights can offer annual salary increases of up to 8% of the first year's base salary. Other extensions are capped at 5% annual raises.
The Mutual Option Factor
Unlike standard Player or Team Options, a Mutual Option requires both the franchise and the player to agree to exercise the contract year. In practice, mutual options are rarely exercised, acting as a flexible bridge.
Second Apron Penalties
Crossing the 2nd Apron (approx. $17.5M+ over the tax line) freezes the team's future first-round draft pick from trades, eliminates the Taxpayer MLE, and bans cash considerations in trades.