Bulls Salary Cap 2026-2027

Cap Maximum

$165.0M

Active Roster

$106.2M

Total Allocations

$239.5M

Includes cap holds

Cap Space

–$74.5M

Over cap

1st Apron Space

$109.7M

Apron: $209M

2nd Apron Space

$122.7M

Apron: $222M

The Salary Cap

The maximum total payroll a team is supposed to carry — but in the NBA it’s a soft cap, meaning teams can exceed it using legal exceptions. Think less “wall,” more “speed limit most teams blow past.”

Source: CBA Article VII, Section 1

Luxury Tax

A financial penalty paid for every dollar spent above the tax threshold. The further over the line, the steeper the rate per dollar. Tax dollars are redistributed to non-tax-paying teams.

Source: CBA Article VII, Section 5

First Apron

Set at $209M for 2026–27. Teams above this line cannot: use the Non-Taxpayer MLE, aggregate salaries in trades, or receive cash in trades.

Source: CBA Article VII, Section 2(e)

Second Apron

Set at $222M for 2026–27 — the CBA’s hardest restriction. Teams above cannot: use the Taxpayer MLE, send or receive cash in trades, aggregate contracts in trades, or trade future first-rounders more than one year out.

Source: CBA Article VII, Section 2(e)(2)

Team Option T

The organization decides whether to keep the contract for an additional year at a pre-set salary. Team exercises if the player is worth it; declines if they want flexibility.

Source: CBA Article XII, Section 1

Player Option P

The player decides whether to stay on the existing deal or opt out to hit free agency. Players opt in when the market is soft or after an injury; they opt out to chase a bigger deal.

Source: CBA Article XII, Section 2

Qualifying Offer Q

A one-year offer a team extends to maintain the right to match any offer sheet a restricted free agent signs elsewhere. If the team doesn’t extend it, the player becomes an unrestricted free agent.

Source: CBA Article XI, Section 1(e)

Trade Exceptions

When a team trades a player, they generate a Traded Player Exception (TPE) — a credit equal to that player’s salary usable within one year to take on other contracts without sending salary back. Like a store credit.

Source: CBA Article VII, Section 6(j)

Bird Rights

Named after Larry Bird, this allows a team to re-sign their own free agent for more money than any other team can offer — even over the cap. Full Bird Rights earned after 3 consecutive seasons; Early Bird Rights after 2.

Source: CBA Article VII, Section 6(b)

Two-Way Contract TW

Allows a player to split time between the NBA roster and the G League affiliate — for the Bulls, the Windy City Bulls. Teams may carry up to three two-way players; they don’t count against the standard cap.

Source: CBA Article VII, Section 6(q)

Cap Holds — Why the Bulls Look “Over” the Cap by So Much

When a player’s contract expires, the NBA places a cap hold on the team’s books — a placeholder that prevents teams from using cap space twice. This is why Chicago’s total allocations ($239.5M) look so much higher than their actual payroll ($106.2M). Simons ($41.5M), Sexton ($28.7M), and Collins ($27.1M) are all free agents, but their holds remain on the books until the Bulls make decisions.

The key move: Teams can renounce cap holds to free up real space. Renounce Simons and that $41.5M disappears — but so does the ability to offer him more than any other team.

Source: CBA Article VII, Section 6(l)