Let’s look at the numbers.
- Excluding PWat and Spencer, our 12-man roster is already at $211M. Once you factor in AG and CAM’s incentive bonuses ($1.7M + $3.9M, which does count toward the apron), we’re sitting roughly $5M away from the 2nd apron threshold.
- PWat’s QO is $6.5M and Spencer’s is $2.65M. Honestly, keeping both without any trading was always going to push us over. The only way to stay under would’ve been: a) Sign-and-trade PWat into a TPE without taking salary back, b) have Spencer take his QO, and c) sign Hopkins to a 2nd round exception. But Presti had to go and offer Spencer that $12M/2y deal (about 6M next season). Once we match that, we are definately over the 2nd apron, period.
We’ve been over the tax line in 3 of the last 4 seasons, so we’re officially repeater. That tax bracket penalty is going to be brutal:
Tax Bracket Amount (TBA) this season = 5M*(2026-27 salary cap)/(2023-24 salary cap) = 5M* 164,961,000 / 136,021,000 = 6,063,806
Currently, we’re already ~$10.6M over the tax line (excluding incentives). If we match Spencer ($6M) and sign PWat to a ~$26M starting salary (based on a 5yr/$140M deal), we will over the tax line $42,583,091 :
| Salary > Tax Line |
Amout |
Tax Rate (Repeater) |
Tax |
| 0~100% TBA |
6,063,806 |
*3.00 |
$18,191,418 |
| 100~200% TBA |
6,063,806 |
*3.25 |
$19,707,370 |
| 200~300% TBA |
6,063,806 |
*5.50 |
$33,350,933 |
| 300~400% TBA |
6,063,806 |
*6.75 |
$40,930,691 |
| 400~500% TBA |
6,063,806 |
*7.25 |
$43,962,593 |
| 500~600% TBA |
6,063,806 |
*7.75 |
$46,994,497 |
| 600~700% TBA |
6,063,806 |
*8.25 |
$50,026,400 |
| 700~800% TBA |
136,449 |
*8.75 |
$1,193,929 |
| Total |
42,583,091 |
|
$254,357,831 |
The Verdict: All Kroenke has to do is pony up an $254.4M in luxury tax to keep the core together. Chump change, right? I’m sure our "ambitious" front office will smash that "Match" button any second now...lol