Free agency key dates plus Transcript: Perks and Apricot on GSW Free Agency (part 1)

never-ending quest to understand the salary cap rules

Free agency key dates

The Free Agency Moratorium starts June 30. This is supposed to be quiet time but in fact all the free agent signings get announced then.

• NBA glossary and primer on free agency

• Perks Warriors Cap and Salary Doc

• Day After Last Game of NBA Finals: Each NBA team may begin negotiating with upcoming free agents who finished the just-completed season on its roster.

• June 30: Each NBA team may begin negotiating with all other upcoming free agents (beginning at 6 p.m. ET).

• July 6: Each NBA team may begin signing free agents to contracts (12:01 p.m. ET).

I always found this calendar to be extremely unhelpful, so let me give you context for how slowly or quickly we might hear by listing the titles of the DNHQ articles from last year. Keep in mind that this year could be different. Things may be unusually slow for GSW because if GSW and Kuminga may be slow to come to agreement and that could stop GSW from signing free agents.

Free Agency 2024

• Free Agency Day 1. FAQs about Klay Thompson, Paul George, Nico Mannion, when will we hear news.

• Free Agency Day 2. Warriors exploring sign-and-trades to get departing Klay a raise and get players back; Chris Paul waived; Paul George pursued but joins PHI

• Klay Thompson leaves in sign-and-trade with DAL; GSW gets two late draft picks and $16m trade exception for more moves; also, De'Anthony Melton signs for $12.8 m / 1y

• Explaining the Warriors new Traded Player Exception and players to target, by Perks

• Free Agency Day 4. Summarizing all the offseason reports so far: Lauri Markkanen and Buddy Hield targeted; Kyle Anderson and De'Anthony Melton signed

• The melancholy(?) end of the Splash Bros era, by Duby

• Free Agency Day 6. Three-point sharpshooter Buddy Hield confirmed to Warriors; aggressive pursuit of Markkanen continues

• Why the Lauri Markkanen trade probably won't happen, according to Shams

Finally, here is a transcript of the conversation I had with Perks on 2025-06-06. I paywalled part of it to encourage people who can support DNHQ to please do so. Everyone is free to listen to the whole thing on YouTube.

Explain: a complete guide to the Warriors off-season | with Perks GSWCBA

• [00:00:00] Introduction and Guest Introduction

• [00:00:20] Warriors' Roster Overview

• [00:00:52] Gui Santos, Quinten Post, Pat Spencer, JK QO

• [00:01:56] What are Cap Holds?

• [00:04:03] Re-signing Kevon Looney and Gary Payton II

• [00:06:32] How do one-year and multi-year minimums count against salary cap?

• [00:07:27] What is a qualifying offer in restricted free agency? Case of Pat Spencer

• [00:08:33] Taran Armstrong, Jackson Rowe, Kevin Knox II and Braxton Key

• [00:10:04] #41 pick and why it's an extra weak second round draft

• [00:12:35] Not a cap space team

• [00:13:04] Staying under the second apron

• [00:14:27] Staying under the first apron

• [00:15:22] How hard is it to stay under the first apron?

• [00:15:42] How do you create and use trade exceptions?

• [00:17:14] How are you hard-capped using a trade exception from the previous season?

• [00:18:43] Can GSW trade for Giannis? It's hard.

• [00:20:53] The Boston fire sale?

• [00:21:31] Free agency needs

• [00:22:58] Can we use the big Nontax Midlevel Exception? Not unless we let JK leave or trade other players.

• [00:24:14] Who can GSW get for the smaller Taxpayer Midlevel Exception?

• [00:25:36] Could they sign guys with the Biannual Exception?

• [00:26:54] Re-signing JK

• [00:28:23] Shawn Marion would be a great outcome for JK

• [00:29:09] Could JK take the Qualifying Offer and become an unrestricted free agent?

• [00:31:08] What will the Warriors offer JK?

• [00:31:58] What is JK's market value?

• [00:33:36] Brooklyn is the only team right now that can sign JK as a free agent

• [00:35:43] What sign-and-trades might happen with JK?

• [00:37:11] What is Base Year Compensation and how does it complicate JK sign-and-trades?

• [00:39:23] Possible sign and trades for JK

• [00:40:00] Chicago

• [00:41:12] How does salary matching work?

• [00:42:12] The gory details on salary matching for trades

• [00:43:18] Potential Sign-and-Trade Targets, Quick Hit Around

• [00:44:10] Exploring Trade Options with Utah and Detroit

• [00:45:02] Washington and Miami Trade Possibilities

• [00:49:55] Cleveland and Sacramento Trade Ideas

• [00:54:05] Final Thoughts and Offseason Plans

Transcript!

[00:00:00] Introduction and Guest Introduction

Eric Apricot: Hello everybody. This is Eric Apricot and I have special guest Perks from GSW Reddit. He's G-S-W-C-B-A and a well-known fanatic about the Warrior's salary cap and different trade and free agent possibilities. Thank you for joining me.

Perks: Thank you for having me. It's a pleasure to be here.

[00:00:20] Warriors' Roster Overview

Eric Apricot: So we have a very fraught off season now trying to figure out how to build around new toy and the aging Steph Curry, Jimmy Butler and Draymond Green. Do you wanna give us just an overview of what the roster situation is looking like going into the off season?

Perks: Yeah, absolutely. It's shaping up to be a pretty interesting off season. It feels like they're at like a roadblock where they have to pick a path. But in terms of where they're currently standing, so going into this next 2025-26 season, they currently have nine players under contract including one two-way.

[00:00:52] Gui Santos, Quinten Post, Pat Spencer, JK QO

Perks: Right now they got about 170.5 million on the books. That does include two team options in Gui Santos, and Quinten Post, who I would expect both of those guys to get picked up. Just 'cause they're pretty cheap for their contract and the value they give on the court, pretty decent. Playable rotation guys and then geese contract is also non-guaranteed.

And Trayce Jackson-Davis is as well. But again, I would expect both of those guys to at least begin the season on the roster.  Moving on from that, they do have a couple of free agents. Obviously the biggest one is Jonathan Kuminga. He's gonna have an $8 million qualifying offer. The lawyers will obviously put that out there to make him restricted.

Then including coming in, they actually have two more restrictive fee agents. One of them is gonna be Pat Spencer who was converted mid-season. He has a 2.5 million qualifying offer. I don't know yet if they're gonna do that one just 'cause it's a little bit more expensive than signing a veteran.

At the minimum. I do know they like Pat. I don't know if they like him enough to commit that much money to him, but that doesn't necessarily mean that Pat couldn't be back on a min, but something to keep in mind. 

Eric Apricot: Do you have those numbers on one of these tabs? 

Perks: Yeah, let me show those so people can see what I'm talking about. 

[00:01:56] What are Cap Holds?

Perks: Yeah, if we head over here, the cap holds, this is gonna be the free agent section. So this is every single player that the Warriors have a cap. Hold on. So basically anytime a player's contract expires, if they do not re-sign in the NBA, they maintain a cap hold.

Like for example, we see David West here 44 years old and he's actually retired. But Warriors still maintain his cap hold until they renounce it. They haven't renounced it 'cause they've never had to make use of cap space. So until they do, he is gonna be on the books. But yeah, of these guys, we've got Jonathan Kuminga here, that is his cap hold right there.

But his qualifying offer is actually gonna be this 7.9 or I guess 8 million figure. So once the qualifying offer has been submitted, his capital is gonna go down to that number. 

Eric Apricot: So this idea of cap hold is, as I understand it, it's to prevent any shenanigans where the order of operations matters. So for instance, let's say you knew you were gonna sign Jonathan Kuminga to $22 million, but you wanna somehow get another few players and shove them into your cap space and then put Jonathan Kuminga into the top and overflow.

And so this is to prevent any kind of stuff like that, you're just gonna say you're probably gonna re-sign 'em at this amount and that's just gonna be a block on your salary cap. Is that about right?

Perks: Exactly. To go even further with that, for example, let's say you have a fresh team. You have no one under contract. You, let's say everyone's contract expired for some reason. You can't just go out, use 150 million cap space on random free agents and then re-sign your guys. The reason that capital won't exist is Hey, you have this player, you have the rights to them, we're assuming you're gonna bring them back.

So we're gonna put this amount on the books as a placeholder for that player. Now if you don't want that player, you can renounce those rights and that will free up that cap hold and create more cap space.

But yeah, for a team like the Warriors who are already over the cap, it's not really relevant to them because they don't have cap space.

But we saw it last year with the 76ers. Tyrese Maxey had a very small cap hold because of the contract he had previously signed. This is what allowed them to bring in Paul George into their cap space. Had Tyrese, Maxey been on like a, I dunno, $20 million contract. His cap hold would've been a lot.

Higher and then they wouldn't have had that cap space in order to bring in Paul George because that cap hold would've been on the books whether or not they had already signed Maxey.

Eric Apricot: Of course, Daryl Morey was the one who figured out some way to finesse the cap hold

Perks: Always Morey.

[00:04:03] Re-signing Kevon Looney and Gary Payton II

Eric Apricot: So we didn't talk about Kevon Looney and Gary Payton the second.

Perks: Yeah. I think we should probably put a couple words on them. Let me start off with you. Are they back? Are they gone? What kind of price point are you thinking?

Eric Apricot: They both seem like players that are worth more to the Warriors than to random teams that they both need a system that brings out their goodness. And Looney just seems to have so much social capital on the team and leadership. And the last time he tried the market, he actually did not get very good offers, which is why he's.

He was on the pretty cheap contract he was at, so I don't really know how much he's gonna get. So if it's not that robust a market, I imagine the Warriors will try to bring him back unless there's, issues with dodging the first tax apron or second tax apron. And then Gary Payton, the second is similar except the last time he hit the free agency market, he did get a offer from Portland, but then that didn't work out all that well 'cause he, he just got injured that definitely hurts his value.

I think this perception that he can't stay healthy. So I'm not sure he's going to get big offers either. So I'm guessing that unless those two get really big offers, that they'll be in the mix with the Warriors to see if the Warriors can match and there's gonna be some dancing and waiting around to see what other dominoes fall.

That's my impression. 

Perks: Yeah, I would agree with that for sure. I feel like for both of them, I think the Warriors would probably put out a standing offer at the minimum salary and be like, Hey, if you accept this, you guys are welcome back. I think anything more than that it gets a little more interesting. I do think the Warriors would let them test the market just 'cause, I felt like Yvonne was a minimum player last year and the war ended up guaranteeing his contract at that 8 million figure and. I thought that was a bit of a overpay, but they did that because they wanted to be able to trade him as salary and because they felt his market was stronger than I think most of us thought. They can still play the role as you said.

They know the system well. They're great cultural fits. I think on a minimum contract, I'd be more than happy to see both of them back. I think once this starts getting a little bit higher than that I think it's just a question of how does it make sense, right? If in terms of your roster building, you have space either below the first or second apron to offer them more and you don't need that money elsewhere 'cause of how the roster shakes out.

Fair enough. Give it to them 'cause why not? But if it becomes a numbers game in terms of trying to fit all the pieces together, I don't know how much you want to try to accommodate to fit those two guys in. Just 'cause I, as people, they're not replaceable. But in terms of court production, I think at this point in their careers, it is a little more replaceable than we'd like to admit.

[00:06:32] How do one-year and multi-year minimums count against salary cap?

Eric Apricot: And then one small technical point is that on your spreadsheet, you've got spots laid out for second year minimum salaries. If we gave minimums to Gary Payton the second, and Kevon Looney because they have many more years of service, they'd be paid considerably more than that. But for the purposes of the CAP calculations, they had be counted just as a two year salary, 

Perks: yes. And that's only if it's a one year deal. So if it's a two year deal, then it's the actual salary. But for any minimum contract that is a one year deal, instead of their actual salary, it is just a two years of service. So that's why I have that as a placeholder in there

Eric Apricot: But that's an interesting twist because at this time in their life, they probably are looking for multi-year deals.

Perks: potentially. Yes. And that's where things might get complicated 'cause if they're like, Hey, we'll do the minimum, but it has to be like a one plus one, with the player option. The Warriors might not necessarily love that 'cause that's gonna increase that salary in that first year to the actual amount, which is I think for both their cases.

With the years of service, it's gonna be upwards of 3 million.

[00:07:27] What is a qualifying offer in restricted free agency? Case of Pat Spencer

Eric Apricot: So you were saying that we have, as far as restricted free agents, we have Jonathan Kuminga, who will talk about extensively. But I see Pat Spencer is there for $2.3 million cap hold

Perks: Yeah. And then his qualifying offer is a bit higher. It's gonna be about 2.5 million. And again, that's why I'm not sure if the Warriors will submit that just 'cause that's about 300,000 more than the two year standard vet minimum. So I don't know if Pat is necessarily worth that to them. But again, that doesn't mean that they can't just potentially re-sign Pat on like a standard minimum contract.

Eric Apricot: If they do submit the qualifying offer, then it'll qualify them to make him a restricted, free agent so he can now, no matter what contract he signs, the Warriors have the right to match that contract.

Perks: Yeah, that's correct. They basically give him a standing offer to come back at that 2.5 million. And then if any other team in the league would like to try to sign him, they would have to submit an offer sheet instead of just offering a straight up contract. So it's gonna be important with Kuminga submitting this $8 million qualifying offer because this doesn't allow any other team to sign JK without the Warriors having the option to either counter or not.

Eric Apricot: Okay. So we'll get to JK in a minute,

[00:08:33] Taran Armstrong, Jackson Rowe, Kevin Knox II and Braxton Key

Eric Apricot: and then we have Taran Armstrong. He is the legendary Australian, who's this clever passer and a real hot prospect so the Warriors can make him a qualifying offer of a two-way.

Perks: Yes, that's correct. I actually liked Taran and I watched him a little bit with Santa Cruz. He's got a good feel for the game and I think it was Mike Dunleavy who said that they actually already had plans for him to be in summer league. So that kind of gives an indication that they will be extending that qualifying offer and bringing him back for another two-way.

And again, it's only a two-way offer only slightly guaranteed that it doesn't count against the cap, so it doesn't really mean a ton to them. So I would expect that one for sure to happen.

Eric Apricot: That's, the two-way is essentially no money to the Warriors. But it does take up a two-way slot.

Perks: Yeah. Yes it does. And they have Jackson Row in one of those spots as well. So that's two spots likely locked up heading into this season.

Eric Apricot: Other free agents you were talking about Kevon Looney, GP 2, Kevin Knox, and Braxton Key.

Perks: Yeah, so those four guys are gonna be unrestricted. That means any other team can simply sign them without the Warriors having any say so. With Looney and Payton, the Warriors have both of their full Bird rights so they can sign them to any contract up to their max. It is worth noting that as we'll get into later with Kuminga.

Looney and Payton would also be subject to something called Base Year Compensation. More about that later, but just something to footnote and remember. And then Knox has non-Bird rights and Key has non-Bird rights as well. So both of those guys, I think maybe they could bring the summer league, see if they can, earn their way.

Back onto the roster during training camp would be what I would look at for those two guys.

Eric Apricot: What else do you wanna tell us about the state of the roster going into the off season? 

[00:10:04] #41 pick and why it's an extra weak second round draft

Perks: Yeah, I mean I think the very last thing to look at is just the draft pick situation. In this upcoming draft, the Warriors do not own their first round pick, but they do have that second round pick from Miami, that's pick number 41. That's gonna be something they're gonna most likely draft. Maybe they do a low yo-yoing like last year with the whole Lindy Waters and Quinten Post situation.

But I would expect him to make a draft there and then use that player to sign to a second round pick exception, likely at this 1.3 million dollars, rookie salary, which is about half of what the veteran salary is. So it'd be a good way for them to fill out that roster spot on a pretty cheap contract.

Eric Apricot: I will say, I do the draft tournament every year and I usually love. Looking into who's gonna be in the second round. They're often the most interesting prospects because they're usually super talented but older. So the NBA tends to devalue them since they don't have that apparent upside.

And so that's how you get players like Trayce Jackson-Davis and Quinten Post coming to the Warriors on super cheap deals. This year there are still good players, but it's just an extra down year for structural reasons. So the NIL money, the name image likeness money that colleges pay players now is huge.

It's in the millions. So there's not a financial reason to go to the pros as early as possible. And then there's also a new ruling that if you played in the junior colleges and you transfer to division one, then you get an extra year of eligibility. So there's gonna be more players than usual who are staying in college.

Then finally, this is more or less, I think the last year that the COVID extra year of eligibility is gonna apply to players. That happened about five years ago. So the upshot is that the second round is looking extra extra thin because a lot of players that should have been in the second round, or would've been in the second round in the past are going back to college.

So I'm not as excited as usual this year. Most years I think the Warriors definitely want to cash in that second round pick for a good, cheap player. But this year I'm feeling like it might be a trade sweetener.

Perks: Yeah, possible. I do to always keep in mind that I think for the second round, it matters less what pick number I have compared to how much you're willing to offer the player. Trayce Jackson-Davis, a great example. The reason he fell to 57 was the Warriors were offering him that full second round pick contract.

A lot of teams wanted him in the thirties and the forties, but they were only offering two ways. So even if it's slim pickings, if there's a guy they really like and they're willing to pay for it, it's possible they can still snag him at that spot. But I guess we'll see how that shakes out.

Eric Apricot: That's true. All right, so I'm, I feel encouraged again. So what do you wanna say about how the Warriors are looking at the off season?

[00:12:35] Not a cap space team

Perks: ​Yeah, so just thinking about how they're approaching it. If you look here, they got nine players on their contract. They have, 1, 2, 3, 4, 5, about six open spots that they need to fill. They're already about 170.5 million. They're. Currently 16 million above the projected cap. It's not really realistic to think of them as a cap space team.

' cause even if you somehow dump a contract, it would probably have to be Draymond to even create any cap space. It's just not really realistic for them.

[00:13:04] Staying under the second apron

Perks: I also don't really think they're gonna be a team that's gonna be spending above the second apron just 'cause all of the harsh tax penalties that are involved.

And, the limiting of their ability to build out the roster. So this is a team I would pick somewhere between under the first apron and under the second apron. So there's gonna be a bit of cushion there. If they wanna stay under the second apron, they can actually add about 36 million more to the roster.

Eric Apricot: So just in the big picture, teams now seem to be really respecting the salary cap in a way that they haven't before because of these extra penalties attached to the second apron in the past you could say, Hey, I don't care if there's a luxury tax. That's not my money.

Joe Lake can spend some money on the team, but now the penalties attached to the second apron affect how you can actually build the team and add good players.

via Keith Smith

Perks: Yeah, absolutely. Not only is the luxury tax just more punitive, but in terms of the roster building each apron you crosses just slashes the amount of different ways you have to actually improve your team. So that was a bigger reason why the Warriors last off season chose to go the route of being an under First Apron team.

'cause, it allowed him the more flexibility it allowed him to, sign and trade Klay Thompson and bring in, Kyle Anderson and bring in Buddy Hield and then use that non taxpayer on Melton. So it is definitely something they're keeping in mind as a way to effectively build out the roster.

So I would not expect the Warriors to cross the second apron threshold. I think they ideally try to even stay below the first. But again, that's gonna depend on how this off season shakes out.

[00:14:27] Staying under the first apron

Perks: In terms of salary, if they wanna stay under the first apron, that's gonna be a little less, closer to 24 million. But there's definitely some different avenues in terms of what they can do.

If they're under first apron, they will have access to the non taxpayer mid-level. That's a pretty nice tool to bring in.

Free agents, it's projected to be about 4.1 million. They would also have access to the biannual exception as well. That's gonna be about 5.1 million.

And then the last thing also that is very important to keep in mind is if you are under the first apron, you're allowed to make trades where you get back more than a hundred percent of what you're sending out.

If you do take back more than a hundred percent, you are actually then effectively hard capped at the first apron,

But that is definitely something very important to keep in mind as well as the ability to aggregate salary and trades, which they can do as long as they are under the second apron.

And if they do operate above the first, but under the second, that biannual exception would be eliminated and that non taxpayer mid level would actually drop down to the taxpayer mid-level, which would be about 5.7 million as a way for them to get a free agent.

[00:15:22] How hard is it to stay under the first apron?

Eric Apricot: the Warriors actually were under the first apron this previous season, right?

Perks: That is correct. Yes.

Eric Apricot: So it's not impossible.

Perks: No, and in terms of having optionality, it is the best course of action. And additionally, they actually have a traded player exception worth about 8.7 million. From the trade they executed for Jimmy Butler. It was Kyle Anderson's salary that was outgoing.

[00:15:42] How do you create and use trade exceptions?

Eric Apricot: I think me and almost all of the world is confused about exactly how you create a trade exception and how you can use it. 

Perks: In that whole mess of trades for Jimmy Butler, some piece of it was a trade where the Warriors sent out $8.7 million more than they took in. And if they had been really clever, they could have actually traded for $8.7 million approximately of player if they did it simultaneously. But the NBA lets you time shift that amount of money into the future to complete the trade.

Eric Apricot: So if you can find one or more players to fit into that 8.7 million, then we'll just pretend it was part of the original trade a long time ago.

Perks: Yeah, exactly. And it gets really complicated. You see these five player for five player trades and think it's oh, that's pretty simple, right? You added the five salaries for the five salaries, but the way those trades actually get broken down tends to be pretty different.

Like one team will look at it completely differently than another team in order to try to maximize the trade matching and the TPEs.

Let's focus in on the Kyle Anderson one 'cause that's actually relevant. So we have an $8.7 million trade exception. We have one year to use it and we could use it for more than one player. But we can't add on other players on our side.

Correct? Yes. So it has to be either for one player making that 8.7, or you can use it for a player making four and then a player making 3.7. Just whatever combination adds up to that.

Eric Apricot: And you can just use part of it, right? And keep some of it for later.

Perks: Yeah, all of it rolls over until it expires. And I believe the expiration for this one is gonna be February 6th 2026.

[00:17:14] How are you hard-capped using a trade exception from the previous season?

Eric Apricot: So there's some funny thing about the first apron, if you're using an exception from the previous season, right?

Perks: Correct. Yes. So because this was generated during the prior season, if the Warriors do make use of it, they would be effectively hard capped at the first apron. They would have to make use of this while staying under the first apron.

Eric Apricot: Is that true right this minute or is there like a June 30th kind of a thing we can finesse?

Perks: It gets a little confusing. The way it's written in the CBA is if an exception is used following the last day of the regular season it is then har caps at the first aver.

So yes, I don't believe there's any sort of loophole for them to work around in that.

Eric Apricot: Let's ask Daryl Morey.

Perks: Yeah, he would know for sure.

Eric Apricot: Some people have been asking me if we sign and traded Kuminga for a trade exception.

So we found some team that could accept his salary in without returning that amount of salary, then we would get a trade exception. But would it count for the base year compensation that his salary's counting at, or would it count for the actual salary that his team will be paying him?

Perks: It would count at the base year compensation amount. So for the way it works for trading if they don't use the actual salary, it's whatever the salary is used for, the actual trade itself. That would be the same thing. If the Warriors say, we'll get into what BYC is and how that matters, but let's say the Warriors sign and trade JK at 30 million.

So he counts at 15 million. Outgoing, they bring in a player worth 16 million. That now hard caps him at the first apron 'cause they brought in a hundred percent more than they sent out. So that's how that works in terms of the outgoing salary in a trade.

[00:18:43] Can GSW trade for Giannis? It's hard.

Eric Apricot: So what about the Warriors getting Giannis. I understand he might be on the market.

Perks: Yeah, I mean there's some big names that are being floated right now. Giannis, we've hearing a lot about KD, we've been hearing a lot about. I feel like LeBron every year is posturing with his player option and we know the Warriors. Would love to have him paired up with Steph. I'd be curious if someone like Kawai or PG or Sabonis, as you said, would be available.

The real issue with all of these guys is just the salary.

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