The NBA has set the salary cap for the 2018/19 league year, according to Shams Charania of Yahoo Sports, who reports (via Twitter) that the cap will be $101,869,000. The luxury tax threshold will be $123,733,000, Charania adds. Meanwhile, the minimum salary floor will be $91,682,000, according to the NBA.
The finalized cap figure comes in just slightly higher than what we expected. For virtually the entire 2017/18 league year, the NBA had projected that the cap for next season would be $101MM, with a luxury tax line of $123MM. The official figures are slightly higher than that, which is good news for teams looking to maximize their cap room, as well as clubs headed for tax territory.
As we detailed earlier this week, many other cap figures, including minimum and maximum salaries and several exceptions, are tied to the percentage of the salary cap increase. Here are some in-depth details on those numbers:
- Maximum salaries for 2018/19
- Minimum salaries for 2018/19
- Values of 2018/19 mid-level, room, bi-annual exceptions
Here are a few more key cap-related figures:
- Estimated average salary for 2018/19: $8,838,000 (Twitter link via Larry Coon)
- Maximum starting salary for certain veteran extensions: $10,605,600 (Twitter link via Jeff Siegel)
- Maximum cash a team can send, receive in trades in 2018/19: $5,243,000 (Twitter link via Coon)
- Tax apron: $129,817,000 (Twitter link via Coon)
Meanwhile, the NBA has also issued updated cap projections for the next two seasons, per Eric Pincus of Basketball Insiders (Twitter link). Those projections are as follows:
- 2019/20: $109MM cap, $132MM tax line
- 2020/21: $116MM cap, $141MM tax line
According to cap expert Larry Coon (Twitter link), the Cavaliers ($50.7MM), Warriors ($32.3MM), Thunder ($25.4MM), and Wizards ($7MM) finished the 2017/18 season as taxpayers, while the Bulls ($3.4MM) and Mavericks ($3.3MM) were charged for finishing below the salary floor.
I still don’t understand how the NBA can’t survive with a hard cap like the NFL. Obviously in a league where 3 superstars can make a champion, a cap-less NBA is not ideal unlike MLB where you need a huge payroll and a lot of all-stars to be a perennial contender.
NFL don’t guarantee contracts if you get hurt, you don’t get paid, NBA is much better you can get every cent of what you sign.
So when does a team actually start paying tax? 101.8 cap but luxury tax threshold at 123.8?
A team can be over the tax line ($123,733,000) during the season and not pay the tax as long as they’re able to get under that line by the end of the season.
But if their team salary at the end of the year is above that $123,733,000, they have to pay the tax.