From CBS Sports · · 2m
NBA Mutual Options: Fighting Second Apron
NBA teams use mutual options to avoid luxury tax aprons by renegotiating contracts without triggering cap penalties.
In brief
NBA teams use mutual options to avoid luxury tax aprons by renegotiating contracts without triggering cap penalties. NBA mutual options let teams and players adjust salaries to stay below luxury tax aprons without losing long-term security. Originally reported by CBS Sports.
Thunder re-signs Hartenstein with mutual option
Oklahoma City Thunder re-signed Isaiah Hartenstein to a three-year, $75 million contract with a mutual option for the 2028-29 season.
First mutual option since 2001
ESPN's Bobby Marks reported the first mutual option in a contract since the Toronto Raptors gave Jerome Williams one in 2001.
Five mutual options in recent deals
Five teams have added mutual options to contracts: Brooklyn Nets, Miami Heat, Golden State Warriors, Boston Celtics, and Oklahoma City Thunder.
Keon Ellis mutual option
Keon Ellis has a mutual option for the 2027-28 season on his two-year, $18 million deal with the Brooklyn Nets.
Moe Wagner mutual option
Moe Wagner has a mutual option for the 2027-28 season on his two-year, $18.5 million deal with the Brooklyn Nets.
Pelle Larsson mutual option
Pelle Larsson has a mutual option for the .2030-31 season on his four-year, $60 million deal with the Miami Heat.
Brandin Podziemski mutual option
Brandin Podziemski has a mutual option for the 2031-32 season on his five-year, $110 million deal with the Golden State Warriors.
Payton Pritchard mutual option
Payton Pritchard has a mutual option for the 2029-30 season on his two-year, $44 million extension with the Boston Celtics.
How mutual options work
A mutual option lets either party decide whether to continue the contract without triggering a trade or free agency.
Player and team benefits
Mutual options allow teams and players to renegotiate contracts while knowing they won't have to do so if it doesn't work.
Hartenstein's tax savings
The Thunder used Hartenstein's mutual option to lower his 2026-27 salary by $5.4 million, moving from $40 million above the second apron to $6.9 million below.
Mutual options as apron antidote
Mutual options let teams stay below luxury tax aprons by adjusting salaries without triggering cap penalties.
Nets' cap flexibility
The Brooklyn Nets have more cap space than the Thunder, so they took on mutual options without buying team options.
Future applications
Teams can use mutual options to adjust salaries for free agents or to avoid luxury tax penalties without triggering trade deadlines.
The bottom line
NBA mutual options let teams and players adjust salaries to stay below luxury tax aprons without losing long-term security.
