NBA
20:44, 18-Sep-2018
NBA informs teams of projected salary caps and luxury tax lines for future two seasons
Updated
20:32, 21-Sep-2018
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The NBA has informed the league of the reckoned salary caps and luxury tax lines for the 2019-20 and 2020-21 seasons: In 2019-20, salary cap will be 109 million US dollars and luxury tax line are projected to be 132 million; then in 2020-21, the salary cap and luxury tax line are expected to reach 118 million and 143 million US dollars respectively, according to Shams Charania from The Athletic.
Charania said that the two projected numbers for the 2019-20 season remained the same as the previous figures as seen in a memo received by the teams in June. Change happened to the salary cap of the 2020-21 season and saw a two-million rise that came from projected Basketball Related Income (BRI) and shortfall-based adjustment.
The Golden State Warriors win three NBA Champions int he past four years while pressure on their payroll is catching uo fast. /VCG Photo
The Golden State Warriors win three NBA Champions int he past four years while pressure on their payroll is catching uo fast. /VCG Photo
The league announced salary cap (101.869 million US dollars) and luxury tax line (123.733 million US dollars) for the coming 2018-19 season in late June. Considering that salary cap is related to the NBA's revenue growth, projected rise means that the league is running good business and makes more money season by season.
Since the numbers for the future two seasons are still referred to as "projected", they will not be necessarily the final confirmed number. For example, reckoned salary cap for the 2016-17 season was 101 million US dollars but went down to 99 million when it was confirmed. In the 2017-18 season, it was first expected to reach 108 million US dollars but closed at 102 million in the end.
The Los Angeles Lakers already have LeBron James but they still need another super star, which reqiues a large salary space so they can offer a big contract. /VCG Photo
The Los Angeles Lakers already have LeBron James but they still need another super star, which reqiues a large salary space so they can offer a big contract. /VCG Photo
Even if they are just projected, the 30 teams still need these numbers for future planning. Those under pressure to pay the luxury tax will need to consider how to adjust their payrolls to minimize the loss while teams with salary spaces will have to seek ways to maximize their spaces so they can offer the best contracts to attract super stars.
Moreover, the current Collective Bargaining Agreement of the NBA will expire in 2024.
(Top picture: Adam Silver, commissioner of the NBA /VCG Photo)