The salary cap is spiking this off-season, thanks in large part to the NBA’s new media contracts, which are much richer than in previous years.
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According to a report from Shams Charania of The Vertical, the National Basketball Association has informed every team in the league that the salary cap is going to be at $94 million. The salary cap was originally expected to jump from $70 million this season to $92 million this summer, but it’s going to be even more than that.
Many teams in the National Basketball Association are probably excited to find out there’s an extra $2 million anticipated to be available for them to spend, but for a team like Denver with a relatively full roster and a plethora of picks in the upcoming draft, this little increase is more of an annoyance than a benefit. This means that a tier 3 max contract will be worth $30.8 million next season. Meaning the Nuggets are going to have to be active in free agency this offseason and, unless they really over pay D.J. Augustin, they are going to have to sign someone outside of their own free agents.
It’s not a dramatic increase but it shows the league is in a healthier financial situation than previously projected. As the NBA’s new television deals begin to kick in, the cash flowing to the franchises of the Association will be unlike anything the NBA has ever seen before.
The salary floor, or the minimum amount teams will need to spend on payroll next season, is now $84.6 million. That means in six years, we’ve seen a 162% increase.
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“Arguably a good problem to have”, NBA Commissioner Adam Silver said in April of a rising income and cap levels.
