Managing finances has always been essential for NBA teams, but the recent updates in the 2023 collective bargaining agreement have made it even more crucial. As the 30 franchises look towards the upcoming offseason, the February 6 trade deadline presents an opportunity to reassess financial strategies. Each organization will navigate the balance between immediate success, drafting prospects, free agency, and trade possibilities. A key factor will be each team's major contract decisions looming on the horizon.

Higher spending by franchises results in fewer options to enhance their rosters. The anticipated salary cap for next season is projected at $154.7 million, establishing a minimum expenditure of $139.2 million for each team. Exceeding this mark entails entering higher thresholds, which include the luxury tax at $187.9 million, the first apron at $195.9 million, and the second apron at $207.8 million. The tax penalties are expected to lessen for teams willing to spend approximately $11 million over the luxury tax line, but those nearing the second apron will face significantly harsher consequences. The rising repeater tax penalties will double, leading teams to reconsider their expenditure strategies as they approach these thresholds, particularly with most franchises traditionally avoiding luxury tax altogether.

Star players often seek reassurance and support from their respective franchises, and Atlanta Hawks guard Trae Young is approaching eligibility for an extension. The Hawks have not progressed past the first round of the playoffs since Young's leadership in 2021. It raises the question of the franchise's commitment to its standout point guard. If Atlanta does not fully invest in Young, it could potentially lead to unrest surrounding his future, especially if he opts into his final year worth $49 million for 2026-27 and pursues a new three-year deal starting at $52.9 million, totaling $171.3 million in new salary. Other notable free agents for the Hawks include Garrison Mathews, Larry Nance Jr., and David Roddy, although players on two-way contracts will not be included in this analysis.

The Boston Celtics have heavily invested in their championship-caliber roster, yet continued production from veteran players like Al Horford and Jrue Holiday poses questions about sustainability in supporting stars Jayson Tatum and Jaylen Brown. The Celtics project a payroll of $232.9 million next year, inclusive of repeater taxes. The fate of Horford, currently earning $9.5 million, may hinge on the potential sale of the team and the incoming leadership's willingness to incur additional tax burdens. Other free agents for Boston include Luke Kornet and Jaden Springer, who may be classified as restricted free agents.

The Brooklyn Nets are poised to have the most cap room in the NBA, with projections estimating up to $80 million available this July, although a more likely figure rests above $55 million. The team must navigate the cap hold of Thomas, which amounts to $12.1 million, as he is a restricted free agent. If Brooklyn utilizes its spending power effectively, they may offer new terms to Thomas who, with a scoring average of 24.5 points per game, would seek at least a $30 million starting rate. However, with limited alternative suitors aside from the Washington Wizards, his leverage in negotiations appears constrained. Other free agents on the roster include Bojan Bogdanović, Dorian Finney-Smith, Keon Johnson, Dennis Schröder, Day'Ron Sharpe, Ben Simmons, Trendon Watford, and Ziaire Williams.

Charlotte Hornets guard Mann has played a pivotal role, averaging 14.8 points and facilitating 3.3 assists in 25.1 minutes per game while maintaining an impressive three-point shooting percentage of 38.8. However, he must reduce his turnover rate of 1.9 to enhance his value. The team could potentially clear salary space, particularly from Cody Martin's contract valued at $8.7 million, leading to approximately $21 million in available cap space. As a restricted free agent, Mann carries a cap hold of $14.7 million, and although Charlotte isn't hovering near the luxury tax, his market value may equate to the projected non-taxpayer mid-level exception of $14.1 million. Other Hornets free agents include Seth Curry, Taj Gibson, and Vasilije Micić.

In a trade from the Oklahoma City Thunder to the Chicago Bulls, Giddey capitalized on a change of scenery, showcasing substantial growth as a shooter with a career-high three-point shooting percentage of 43.2 and personal bests of 7.0 assists per game. Yet, Giddey faces a challenge due to the Bulls' front office, known for frugal spending habits. For a desired contract in the $30 million range, Giddey may require an offer sheet from the Brooklyn Nets or Washington Wizards. Lacking such an offer, the Bulls possess the upper hand in negotiations and may present a deal starting around $20 million annually, alongside other free agents Lonzo Ball, Jevon Carter, Torrey Craig, Chris Duarte, and Talen Horton-Tucker.

The Cleveland Cavaliers, currently the top team in the NBA, have key players signed long-term, except for Caris LeVert, who is poised for a decision as he enters the final year of his contract. Cleveland may opt to retain LeVert near the estimated non-taxpayer mid-level exception, but without him, the team's payroll is projected to surpass the upper apron, nearing $202 million. Retaining LeVert could elevate the Cavaliers over the second apron unless they successfully trade Georges Niang, whose contract will roll off the books after the 2024-25 season, valued at $8.2 million. Other free agents for Cleveland include Ty Jerome, Sam Merrill, and Tristan Thompson.

The Dallas Mavericks are expected to prioritize Luka Dončić, offering him considerable terms following his All-Star recognition. With the opportunity to opt-out of his $49 million salary for 2026-27, Dončić stands to secure a supermax extension starting around $59.5 million annually over an additional five years, cumulatively amounting to $345.3 million. The situation surrounding teammate Kyrie Irving is more complex; he too can opt-out of his final $44 million year but is highly likely to re-sign with the Mavericks. Other notable free agents include Spencer Dinwiddie, Dante Exum, Quentin Grimes, and Markieff Morris.

Following their investment to secure the championship in the 2022-23 season, the Denver Nuggets face challenges to maintain their roster balance as players such as Bruce Brown, Jeff Green, and Kentavious Caldwell-Pope have departed. Although Braun’s extension will not commence until the 2026-27 season, the Nuggets will continue allocating significant funds to stars including Nikola Jokić, Jamal Murray, Aaron Gordon, and Michael Porter Jr. The franchise may hesitate to pursue Braun's extension until he becomes a restricted free agent in 2026, potentially seeking a mid-level exception valuation of around $15.5 million in two years. Other free agents include Vlatko Čančar, DeAndre Jordan, and Dario Šarić.

The Detroit Pistons are at a crossroads with Jalen Duren and Jaden Ivey, both eligible for rookie-scale extensions. While the organization could choose to wait until restricted free agency in 2026, there's a mutual tendency for teams and players to pursue early commitments. Ivey’s negotiations may be more complex, as both he and Cade Cunningham excel when orchestrating the offense, sparking questions about their long-term coexistence. Duren, largely viewed as the primary big man, might see a smoother decision for extension. The Pistons could take cues from the Houston Rockets' early commitments to Jalen Green and Alperen Şengün, initiating substantial contracts before securing playoff positioning. Other free agents for Detroit include Malik Beasley, Duren, Tim Hardaway Jr., and Wendell Moore Jr.

The Golden State Warriors postponed their discussions regarding Jonathan Kuminga to the summer when he enters restricted free agency. If the franchise opts against retaining him, a move prior to the deadline could be initiated. To meet the expected compensation, Kuminga will need significant support, rumored to demand a salary in the $30 million range. In the absence of external offers from teams such as the Nets or Wizards, Kuminga may consider accepting a qualifying one-year offer from the Warriors, valued between $8 million and $10 million, ultimately becoming an unrestricted free agent in 2026. Nevertheless, reaching a mutually agreeable figure between both parties seems more plausible, as does the option of a sign-and-trade, known for its complexity. Other free agents include Kevon Looney, De'Anthony Melton, Gary Payton II, and Lindy Waters III.

Amidst trying to determine the direction for Fred VanVleet and his $44.9 million team option, the Houston Rockets face another significant decision concerning rookie-scale extensions for Jabari Smith Jr. and Jalen Green. VanVleet's option appears excessive relative to market value. Hence, an alternative strategy may involve a multi-year pact at a reduced annual figure, potentially laying a groundwork of approximately $20 million annually over four years. Other notable free agents include Steven Adams, Jeff Green, Aaron Holiday, and Jae’Sean Tate.

Following a successful 2023-24 campaign, the Indiana Pacers have made strides in fortifying their roster. However, the team faces critical questions on whether they can financially support center Myles Turner without incurring luxury tax penalties. The projected roster spending is estimated at $176 million before re-signing Turner. A possible starting salary of $20 million for Turner would lead the Pacers to a payroll near $194 million, positioning them just shy of $6 million over the tax threshold. Options would involve a reduced salary for Turner or offloading players through trades. Other free agents include Isaiah Jackson, James Johnson, and James Wiseman.

The Los Angeles Clippers contend with minimal uncertainties in their roster, aside from role players and the mutual decision between the franchise and James Harden. Harden, a ten-time All-Star, holds a $36.3 million player option, allowing him the potential to either opt out for an extended deal with the club or remain with his current contract. However, he may hesitate to pursue the latter, given the franchise's long-term vision after the departure of Paul George in free agency last summer. Other free agents include Mo Bamba, Nicolas Batum, Amir Coffey, Bones Hyland, Kevin Porter Jr., and P.J. Tucker.

As LeBron James appears to transition into a phase focusing on two-year contracts featuring player options, the Lakers display unwavering commitment to his tenure. The organization remains invested in providing James resources as long as he decides to remain active in the league. With D’Angelo Russell likely to exit from the team’s financial commitments, the Lakers will have more flexibility heading into the next season, benefiting from position under the aprons. Other free agents include Jaxson Hayes, Jalen Hood-Schifino, Cam Reddish, Christian Wood, and Russell.

The Memphis Grizzlies may extend Jaren Jackson Jr. to capitalize on the maximum allowable raise from his expiring $23.4 million contract for the 2025-26 season. An extended deal may equate to four years totaling $146.8 million unless Jackson seeks larger commitments, in which case he would need to await unrestricted free agency in 2026. Other free agents consist of Santiago Aldama, Jake LaRavia, and Luke Kennard.

Currently, Jimmy Butler is unlikely to find an adequate market capable of providing him close to his $52.4 million player option. Should he seek an extension during this season, it stands to be with the Miami Heat or another franchise pursuing a trade scenario. Butler has not commenced the season on an optimal note, which may lead this route to become more viable. Attention should be drawn to Butler as the February 6 trade deadline approaches. Other free agents include Thomas Bryant, Alec Burks, Duncan Robinson, and Josh Richardson.

The Milwaukee Bucks have struggled recently, revealing an inability to rejuvenate their roster since their 2021 championship. The acquisition of Damian Lillard has not yielded the anticipated returns, and with Giannis Antetokounmpo seemingly remaining committed to Milwaukee, critical decisions loom regarding several impending free agents. Alongside the consideration of center Brook Lopez, the status of Bobby Portis and his $13.4 million player option could spark extensive debate. Portis may seek compensation exceeding the projected $20 million mark, yet competition for his services may not surpass $14.1 million via the non-taxpayer mid-level exception. Other free agents include MarJon Beauchamp, Pat Connaughton, Khris Middleton, Taurean Prince, Gary Trent Jr., and Delon Wright.

With considerable financial flexibility, the Minnesota Timberwolves are likely to offer Naz Reid more than his player option valued at $15 million. However, the future of Julius Randle hinges on the forthcoming year, determining his fit within the team's core. Given the scarcity of teams with available cap room, Randle may end up opting into his $30.9 million salary for 2025-26. Alternatively, a longer-term contract at a reduced yearly value, similar to Rudy Gobert’s recent agreement with Minnesota, may appeal to Randle if he chooses to lessen his annual compensation. Other free agents comprise Nickeil Alexander-Walker, P.J. Dozier, Luke Garza, Josh Minott, and Reid.

The New Orleans Pelicans remain cautious about incurring luxury tax penalties. Last season, they found themselves over the tax threshold but navigated financial adjustments to regain compliance. The team may consider strategic moves that could include resignations, such as that of Brandon Ingram. Injuries have marred their current season's outlook, prompting crucial deliberation regarding Ingram's long-term future within the organization. If he becomes a free agent in the summer and no substantial offers arrive from the Nets and Wizards, Ingram could re-sign with New Orleans at an amount that keeps the franchise under the tax limit, speculated at around $20 million. Other free agents for the Pelicans include Javonte Green, Jaylen Nowell, Jeremiah Robinson-Earl, and Daniel Theis.

The New York Knicks have completed substantial business this past offseason, acquiring players such as Karl-Anthony Towns and Mikal Bridges while extending the contract of Jalen Brunson. However, the future of Achiuwa remains uncertain, particularly as the team aims to navigate staying beneath the second apron limit. The organization must decide shortly regarding Achiuwa, particularly within a $2 million margin before making a decision. Other free agents include Ariel Hukporti, Cam Payne, Matt Ryan, and Jericho Sims.

A priority for the Oklahoma City Thunder includes extending Chet Holmgren and Jalen Williams. While both players are respected talents, Holmgren's history of injuries presents more complexity in negotiations. The Thunder must evaluate the longevity of Holmgren's value while also coming to terms on a potential supermax extension for Shai Gilgeous-Alexander. As success builds within the franchise, the costs of maintaining the core players will inevitably rise, though the financial implications won’t be immediate, postponing until the 2026-27 season. Other free agents consist of Alex Caruso, Malevy Leons, and Jaylin Williams.

With all indications pointing towards the Orlando Magic maximizing Paolo Banchero this offseason through a rookie-scale extension, the structure of the deal may include performance criteria, allowing for escalated earnings as a result of earning All-NBA honors, a Defensive Player of the Year award, or MVP recognition. Other free agents also need consideration, with names like Gary Harris, Caleb Houstan, Cory Joseph, and Mo Wagner entering discussions.

The Philadelphia 76ers have invested significantly in their roster this offseason, notably adding Paul George while securing the retention of Tyrese Maxey. Kelly Oubre's position, however, remains fraught with uncertainty as he signed a two-year deal featuring a player option for $8.4 million in 2025-26. Oubre is likely to explore his options in free agency. The 76ers maintain the financial flexibility to approach a deal closer to the non-taxpayer mid-level exception, yet their slow start may diminish their desire to reinvest in Oubre. Other free agents include Andre Drummond, Eric Gordon, Reggie Jackson, Kyle Lowry, and Guerschon Yabusele.

Kevin Durant had the option for an extension prior to the season. Still, he and the Phoenix Suns agreed to delay discussions until they can negotiate an additional year of commitment, adhering to restrictions imposed by the over-38 rule. Most NBA insiders anticipate a renewed dialogue during the summer wherein Durant could potentially secure two more seasons at a valuation of $123.8 million, beginning at a salary of approximately $59.5 million. Other notable free agents include Bol Bol, Tyus Jones, Damion Lee, Monte Morris, and Mason Plumlee.

The Portland Trail Blazers appear to be embracing a youth-oriented approach, with Shaedon Sharpe poised to become a central figure alongside rookie center Donovan Clingan. Sharpe may be eligible for a rookie-scale extension during the upcoming summer, and should he achieve a breakout season, he could command a contract in the $30 million annual range similar to that of Jalen Green. The franchise must also address whether Anfernee Simons takes precedence over rookie Scoot Henderson, as Simons’ current contract runs through the end of 2025-26 and permits an extension in July. Other free agents include Dalano Banton, Rayan Rupert, Matisse Thybulle, and Jabari Walker.

De'Aaron Fox aims to secure an All-NBA selection to enhance his extension eligibility to the 35 percent max, representing around $59.5 million for an additional five years totaling $345.3 million. Should he fall short, he could still achieve $51.6 million over four years, equating to $228.6 million. The Sacramento Kings appear keen to accommodate both Fox and rookie-scale extensions for Keegan Murray this summer.

The San Antonio Spurs have issued rookie-scale extensions to Keldon Johnson and Devin Vassell with Jeremy Sochan next in line for a similar deal. Selected ninth overall in the 2022 draft, Sochan presents a unique skill set, absent in three-point shooting at 28.4 percent but exhibiting defensive prowess and rebounding capabilities. It is anticipated that San Antonio will offer Sochan a contract valuing above the non-taxpayer mid-level exception. Additionally, players like Malaki Branham and Blake Wesley remain eligible for rookie-scale extensions. Other free agents on the roster include Charles Bassey, Tre Jones, Sandro Mamukelashvili, and Chris Paul.

Ochai Agbaji finds himself with his third NBA organization, linking back to the Cleveland Cavaliers through the Donovan Mitchell trade before subsequently moving to the Toronto Raptors, where he has blossomed into a reliable starter. It is expected that Toronto will offer him a rookie-scale extension surpassing the non-taxpayer mid-level exception. Restricted free agent Davion Mitchell is also anticipated to return. Other free agents include Chris Boucher, Bruce Brown Jr., Bruno Fernando, and Garrett Temple.

Walker Kessler's name has circulated in trade discussions while entering the summer with rookie-scale extension eligibility. The Utah Jazz can decide to delay negotiations, allowing him to hit restricted free agency in 2026. However, if they are not inclined to commit significant funds to Kessler, securing an early return through a trade may emerge as a sound approach. Kessler is expected to seek an annual salary between $20 million and $30 million, though the clarity of his market remains uncertain. Other free agents from the Jazz include John Collins and Patty Mills.

The Washington Wizards do not currently possess any players eligible for rookie-scale extensions. As the franchise embarks on a rebuilding path, retaining impending free agents appears improbable. Veteran Malcolm Brogdon may emerge as a candidate for a reasonable contract near the non-taxpayer mid-level exception, or he could be traded in advance of the February deadline.