Everything you need to know about NBA free agency in 2021

Not long after the confetti settled at Fiserv Forum to celebrate a Milwaukee Bucks championship, the rest of the NBA will jump at the chance to alter their fortunes during the upcoming free-agency period.

Set to officially begin Monday night, 2021 free agency has already produced one blockbuster trade agreement, between the Washington Wizards and Los Angeles Lakers.

On Thursday, news broke that Wizards point guard Russell Westbrook would head to the Lakers, in exchange for Kyle Kuzma, Kentavious Caldwell-Pope, Montrezl Harrell, and the Lakers' No. 22 pick in the 2021 NBA Draft. Los Angeles also got a 2024 second-round pick and 2028 second-round pick.

While that trade deal sent shock waves through the league, the rest of NBA free agency may be a bit tame.

A few big names are set to hit the market, but most are projected to stay put. Nonetheless, a number of talented players are destined to suit up for new teams next season and will learn their fates in the coming week.

To get you prepped for the offseason frenzy, here is everything you need to know about 2021 NBA free agency.

When does the 2021 free-agency period begin?

Teams can begin negotiating with free agents at 6 p.m. ET Monday night, the official start of free agency.

When is the 2021 free-agent signing period?

Many players will agree to contract terms throughout the week, but those deals cannot be signed until Aug. 6 at 12:01 p.m. ET.

What is the projected 2021-2022 NBA salary cap?

Per ESPN insider Adrian Wojnarowski, the future salary cap will jump by about 3%, to $112 million, while the luxury tax will reach $136.6M.

For the 2022-2023 season, the cap will increase to $115.7M, with a $140 million luxury tax.

Based on Spotrac's team salary cap tracker, the franchise with the most projected practical cap space is the New York Knicks, with $52.6 million. The San Antonio Spurs own the second-most projected practical cap space ($48.02 million), followed by the Dallas Mavericks ($33.55 million), Oklahoma City Thunder ($30.05 million), and Memphis Grizzlies ($24.42 million).

Who are the top free agents in 2021?

At one point, the 2021 free-agent class was going to include the likes of LeBron James, Giannis Antetokounmpo, Jrue Holiday, Rudy Gobert, and Paul George. But all those players signed contract extensions, which leaves Kawhi Leonard, Chris Paul, and Kyle Lowry as the top names set to hit free agency.

Leonard, who tore his ACL during the Western Conference Semifinals, declined a $36 million player option for next season, but he is expected to negotiate a new deal to remain with the Los Angeles Clippers.

Paul also declined his $44.2 million player option for the 2021-2022 season and will become an unrestricted free agent. The 36-year-old point guard will likely stay in Phoenix, where he just led the team to its first NBA Finals appearance since 1993.

Should Paul decide to sign with a new team, the best another franchise can offer him is a three-year, $123 million deal because of the NBA's “over-38’’ rule.

Among Lowry's suitors, the Miami Heat should make a strong push to sign the Toronto Raptors point guard, who has expressed interest in playing alongside Jimmy Butler.

The Heat declined Andre Iguodala's $15 million team option for next season and picked up the $19.4 million option on Goran Dragic's contract, which the franchise can use in a potential sign-and-trade deal with the Raptors.

The Knicks, Mavericks, New Orleans Pelicans, and the Philadelphia 76ers (Lowry’s hometown team) could also make a run for the one-time NBA champion.

Conley, DeRozan and other players set to hit free agency

Among the other household names headed for free agency are Atlanta Hawks forward John Collins, Utah Jazz guard Mike Conley, and Spurs forward DeMar DeRozan.

Collins was a key contributor during Atlanta's surprise playoff run, which culminated in the Eastern Conference Finals.

A restricted free agent (RFA) — who can sign an offer sheet with any team, but end up staying with their current team, if it matches another team's offer — Collins will most likely continue his journey in Atlanta.

Unrestricted free agents Conley and DeRozan can sign with any team. The Jazz will reportedly offer Conley a three-year, $60 million contract, while DeRozan has been linked to the Lakers and may be willing to take a pay cut to sign with the championship contender.

Pelicans guard Lonzo Ball (restricted), Cleveland Cavaliers center Jarrett Allen (restricted), Lakers guard Dennis Schroder (unrestricted), Heat guards Duncan Robinson (restricted), and Victor Oladipo (unrestricted), and Clippers guard Reggie Jackson are a few more names to keep an eye on in the coming week of free-agency news.

While not a free agent until the 2024-2025 season, Damian Lillard has also been discussed as a trade chip. The Portland superstar has denied rumors he will request a trade, but should the longtime Blazers guard seek greener pastures, the Knicks are allegedly his preferred landing spot.

Key free-agency terms to know

In addition to restricted and unrestricted free agency, there are a few more unique terms to become acquainted with ahead of 2021 free agency.

Team option: A team option grants a player’s original team the right to extend a player's contract for one additional season after the scheduled end date.