The COVID-19 crisis continues to impact the world both from a health and financial perspective, and the NBA is no exception. While there is fear that the pandemic, which has already cost the NBA an exorbitant amount of money, will cause the league’s salary cap to drop significantly in 2020/21, that may not be the case. Ian Begley of SNY.tv reports that the salary cap shouldn’t see a steep decline from the most recent projection of $115MM.
The National Basketball Players Association has told agents to expect a drop in Basketball Related Income for 2021. While BRI is used to calculate the salary cap, Begley adds that the salary cap is expected to be calculated fairly and won’t plummet because of a one-year outlier, assuming “things unfold as expected.”
The NBA is weeks away from making a decision on the remainder of the 2019/20 season, as commissioner Adam Silver recently announced. While the league surely wants to play out the rest of the season, it doesn’t want to delay this year to the point where it significantly impacts the 2020/21 campaign.
Looking for drop to $105M next year and then back to $115M for 2021.
Should also do a Tax forgiveness this year and set the Tax at $130 next year. Then back to normal in 2021 season.