The NBA seem to be bringing several changes to the league this year. Recently, the NBA announced that the league will partner up with Sorare to launch an NFT based fantasy basketball game. This time around, The Association has announced one more change to the salary cap.
For those who do not know what it means, the cap is the limit that teams can pay their players. The revenue that the league generates will determine the cap amount and it will change every season. It exists to prevent inequality between teams in terms of the money they spend.
The salary cap in the league for the 2022-23 season is $123 million. The official announcement is that the cap will increase to $134 million in the 2023-24 season.
How will the rise in salary cap affect NBA teams?
Although there is no confirmation that the limit will be $134m, the NBA strongly believes there might be an 8.4% rise. In addition to that, the Association will be make changes to the tax levels as well, which will also increase.
The 2023-24 NBA salary cap is expected to be $134M ($10.4M higher than this upcoming season), with a projected $162M tax level, per @ShamsCharania pic.twitter.com/5wlwjG6DPr
— Bleacher Report (@BleacherReport) September 9, 2022
“Based on current projections, the cap will rise 8.4%, and the tax level will rise 7.8% over this season. Both figures, $134 million for the salary cap in 2023-24, $162 million as the tax level, would set records, and both are $1 million higher than the league’s most recent projections made in June. The looming 2022-23 season has a cap of $123.655 million, a tax level of $150.267 million,” said the official NBA website.
The increase in salary cap would mean that the teams can now spend more, which they have been doing already if we’re being honest. The salary cap helps to prevent teams from overspending in the market to form super teams. Moreover, the cap is one of the things that is keeping the league from being money-dominated. The teams often exceed the salary cap, and the NBA has another method for those teams: luxury tax.