Salary Cap

And-Ones: BWB Asia, Gambling, Williams, G League

The Thunder’s Corey Brewer, Nets’ Caris LeVert, Heat’s Kelly Olynyk and Mavericks’ Dwight Powell will coach top high school age campers from the Asia-Pacific region in the 10th edition of Basketball Without Borders Asia, according to an NBA release.

BWB Asia 2018 will be held May 30–June 2 at The NBA Academy India in Delhi National Capital Region. Players and coaches will lead the campers through a variety of activities on and off the court, including movement efficiency, positional skill development, shooting and skills competitions, 5-on-5 games, and daily life skills seminars.

In other developments from around the league:

  • New Jersey Senate President Steve Sweeney voiced strong opposition to the sports’ leagues request for sports betting fees, ESPN Chalk’s David Payne Purdum tweets. “They are calling this extortion attempt an integrity fee, even while fully aware that providing participants a stake in the volume of betting would amount what could more accurately be called an anti-integrity fee,” Sweeney said. The NBA later defended its position, saying its games are the foundation of what will be bet on, the Associated Press reports. “We believe it is reasonable for casinos to compensate the NBA with a small percentage of the total amount bet on our games,” NBA spokesman Mike Bass said.
  • The NBA is projecting the salary cap to inflate by $7MM in 2019 and some of that projection might include some anticipated new gambling-related revenue, according to ESPN’s Brian Windhorst. While the cap could rise due to gambling-related income, it won’t cause a dramatic increase in the future, Windhorst adds.
  • Former NBA guard Mo Williams will join Mark Gottfried’s staff at Cal State Northridge, ESPN’s Jeff Goodman tweets. Williams played for Gottfriend at Alabama, Goodman notes.
  • The G League showcase has been moved from January to December and Las Vegas is a strong contender to host it, Marc Stein of the New York Times tweets. Orlando is also being considered as a host site, according to 2ways10days.com. League expansion is a major reason why Las Vegas and Orlando are potential landing spots for the showcase.

Salary-Cap Projections Remain At Preseason Level

The NBA’s preseason salary cap projections of $101MM for next season and $108MM for 2019/20 have not changed, Eric Pincus of Basketball Insiders tweets. The latest league projections were disclosed to teams in a recent memo, Pincus adds.

[RELATED: Maximum-salary figures for a $101MM salary cap]

The cap estimates, which were originally made public in September, could naturally have a major impact on the free agent market this summer. The projection for 2018/19 represents a modest $2MM increase from last summer and a major change from what teams have seen over the the past two years. The cap jumped from $70MM to $94MM for the 2016/17 season. It bumped up another $5MM to the $99MM mark for the 2017/18 season.

The luxury tax level projections remain at $123MM and $131MM for the next two seasons, Pincus continues.

The players project to have earned $20MM more than their share of basketball related income (BRI). The NBA will recoup that from escrow (10% that’s withheld all year from player checks), Pincus adds.

NBA Releases Future Salary Cap Projections

The NBA has informed teams that it expects the 2018/19 salary cap to be $101MM, Shams Charania of The Vertical tweets. The league also said that they forecast the 2019/20 figure to be $108MM, although both figures are subject to change.

The modest $2MM increase is a stark contrast from what teams around the league have seen over the course of the past two years. From 2015/16 the cap jumped from $70MM to $94MM and then the next year it bumped up another $5MM to the $99MM mark it sits at for the 2017/18 season.

A 2018/19 cap projection of $101MM falls short of the $108MM prior projection the league forecast back during the summer of 2016, but after the final 2017/18 figure came in $2MM below projections, it’s not all that surprising.

During the summer we wrote that the league lowered its 2017/18 projection on the heels of lower than expected playoff revenue and it’s possible we’re still seeing the impact of that.

Given the latest projections, the salary floor for the 2018/19 season would be roughly $91MM.

NBA Salary Cap, Max Salaries Set For 2017/18

The NBA has formally set the 2017/18 salary cap at $99.093MM, Shams Charania of The Vertical writes. That figure lands ever so slightly above the most recent projections. The luxury tax threshold, according to a league memo, will be $119.266MM, while the salary floor will be $89.184MM.

In addition to setting this year’s salary cap and tax line, the NBA also issued projections for the next two league years. Here are those estimations, per Albert Nahmad (Twitter link):

  • 2018/19: $102MM salary cap, $123MM tax line
  • 2019/20: $108MM salary cap, $131MM tax line

The NBA’s minimum salaries and mid-level and bi-annual exception figures had already been set for the 2017/18 season, so today’s cap announcement won’t change those. However, the maximum salaries for ’17/18 will be a little higher than our most recent projections. Here are the starting salaries for max contracts:

  • Players with six years of experience or less: $24,773,250
  • Players with 7-9 years of experience: $29,727,900
  • Players with 10+ years of experience: $34,682,550

Here are the total values for a player re-signing with his own team for a five-year max contract with 8% annual raises:

  • Players with six years of experience or less: $143,684,850
  • Players with 7-9 years of experience: $172,421,820
  • Players with 10+ years of experience: $201,158,790

Here are the total values for a player signing with a new team for a four-year max contract with 5% annual raises:

  • Players with six years of experience or less: $106,524,975
  • Players with 7-9 years of experience: $127,829,970
  • Players with 10+ years of experience: $149,134,965

Updated Maximum Salary Projections For 2017/18

Last month, we published maximum salary projections based on a $101MM salary cap. However, on Wednesday, the NBA informed teams that the salary cap projection for 2017/18 is now $99MM. The difference is fairly modest, but it’s enough to affect what maximum salary contracts would look like. For instance, a player like Chris Paul could earn more than $205MM on a five-year max with the Clippers with a $101MM cap. With a $99MM cap, his maximum earnings slip a little to below $201MM.

While maximum salary contracts start at the same amount no matter where a player signs, players re-signing with their own teams can get larger raises and more years than if they sign elsewhere.

Additionally, players with less than seven years of NBA experience can only get a maximum salary worth 25% of the cap, while veterans with more experience can sign deals that start at 30% or 35% of the cap. So, the figures below reflect the various salaries that players like Otto Porter (less than six years), Gordon Hayward (7-9 years), and Paul (10+ years) could get on max contracts.

You can check out our story from March for more details on maximum salary contracts. For now, here’s what new max deals will tentatively look like this summer based on a $99MM cap:


A player re-signing with his own team (8% annual raises, up to five years):

Year 6 years or less 7-9 years 10+ years
2017/18 $24,750,000 $29,700,000 $34,650,000
2018/19 $26,730,000 $32,076,000 $37,422,000
2019/20 $28,710,000 $34,452,000 $40,194,000
2020/21 $30,690,000 $36,828,000 $42,966,000
2021/22 $32,670,000 $39,204,000 $45,738,000
Total $143,550,000 $172,260,000 $200,970,000

A player signing with a new team (5% annual raises, up to four years):

Year 6 years or less 7-9 years 10+ years
2017/18 $24,750,000 $29,700,000 $34,650,000
2018/19 $25,987,500 $31,185,000 $36,382,500
2019/20 $27,225,000 $32,670,000 $38,115,000
2021/22 $28,462,500 $34,155,000 $39,847,500
Total $106,425,000 $127,710,000 $148,995,000

NBA’s Salary Cap Projection Down To $99MM

The NBA has informed teams that the salary cap for the 2017/18 season is expected to come in at $99MM, according to Jay King of MassLive.com (Twitter link). The luxury tax line would be at $119MM, per Eric Pincus of Bleacher Report (Twitter link).

Although that’s still a solid increase over this year’s $94.143MM cap, it’s down from the most recent projection supplied by the league in early April. At that time, the NBA projected a $101MM cap, so teams have likely had that figure in mind as they make their preparations for the draft and free agency.

The reduced salary cap projection won’t exactly blow up any teams’ offseason plans, but it could make things more challenging for teams looking to open up cap space for a marquee free agent — clubs may have to clear an extra $2MM in order to make room for a maximum salary contract, though max salaries would be slightly smaller than anticipated as well.

At one point, the salary cap for 2017/18 was expected to climb to $108MM, but the NBA’s projections have gradually gotten more modest within the last year. Larger-than-anticipated free agent spending in 2016 contributed to that decline, and the fact that the 2017 postseason featured fewer games than usual played a part as well.

The NBA will formally announce the salary cap for 2017/18 by the start of July, so nothing is official yet.

Playoff Mismatches May Lower Salary Cap

This year’s NBA playoffs could set a record for fewest games since the current format was adopted in 2003, tweets salary cap expert Albert Nahmad.

If the Warriors or Cavaliers sweep the Finals, that will result in 78 games, which would be the lowest total since the first-round was expanded to best-of-seven. Even if the Finals go to seven games, 81 would be tied for the second-fewest.

The reduction in games means less revenue from gate receipts, which could cause next season’s salary cap to fall below its current projection of $101MM, according to RealGM.

The Warriors have notched the highest gate receipts of any playoff team over the past three years. However, they swept their way into the Finals and have played just six home games so far, compared to 10 at the same point last season. Their Finals opponents, the Cavaliers, are 12-1 and have also played just six games at home.

There have been just two seven-game series so far, with the Clippers and Jazz going the distance in the first round and the Celtics and Wizards doing the same in the Eastern Conference semifinals.

The NBA released its cap projection of $101MM in April. The official figure will be calculated in July.

Eastern Notes: Sessions, Magic, Rondo, LeBron

The Hornets have an important decision to make with Ramon Sessions, Bobby Marks of The Vertical writes. The point guard has a $6.2MM team option for next season and Charlotte is over the salary cap, so declining it wouldn’t net the team additional room to sign a replacement. If the franchise decides to let Sessions hit the open market, it would have to find another option off the bench either in the draft or by using the mid-level exception.

Here’s more from the Eastern Conference:

  • The Magic need to build through the draft and work the trade market this offseason rather than look to sign high-priced free agents, Marks contends in a separate piece. Orlando has made a quite a few major signings over the last few seasons and the moves haven’t helped the team in the win column.
  • Rajon Rondo, who was reportedly unable to play over the last three games because of a thumb injury, revealed that he also has a torn ligament in his wrist, Nick Friedell of ESPN.com tweets. The point guard remains a “longshot” to play in the Bulls‘ first-round series, according to K.C. Johnson of The Chicago Tribune (Twitter link).
  • Cavaliers coach Tyronn Lue isn’t worried about giving LeBron James too many minutes in any one playoff game, as he tells Chris Haynes of ESPN.com“Bron today just said he feels worse when he doesn’t play,” Lue said. “Like right now, he said he feels worse, so, we just got to gauge it and see how he feels. Everyone else’s minutes were great outside of LeBron. He said he feels great. He didn’t really have a defensive assignment. He was able to roam off guys during the series and, so, it was good for him. With him playing the minutes he played during [the] course of the regular season, it has helped him in the playoffs.”

NBA Projects $101MM Salary Cap Next Season

The NBA’s latest salary cap projection for the 2017/18 season is now $101MM, sources told Adrian Wojnarowski of The Vertical. That’s an increase of nearly $7MM over this season’s cap of $94.1MM but lower than previous projections. The tax level is projected to rise $8MM to $121MM next season, Wojnarowski adds. (Twitter links).

This is a slight drop from the projections that Eric Pincus of Basketball Insiders reported in February. Pincus’ report projected a 2017/18 cap of $102MM with a tax threshold of $122MM. Previous projections had the cap for 2017/18 as high as $108MM, according to RealGM.com.

The somewhat modest increase in the projected cap means that teams will have a little less freedom to throw money around, compared to the free agent spending spree last summer. Players will still make substantial more money than just a couple of seasons ago. The cap was $70MM last season and hovered between $53.1MM in 2006/07 to $63MM in 2014/15.

NBA Lowers Cap Projections For Next Two Years

The NBA has lowered its salary cap projections for the next two seasons, according to a report from Eric Pincus of Basketball Insiders. The projected 2017/18 cap is now $102MM with a tax threshold of $122MM, while the 2018/19 projection calls for a cap of $103MM and a tax line of $125MM. Both figures would represent an increase from this year’s $94MM cap (and $113MM tax line), but those increases would be more modest than initially predicted.

Pincus relayed the 2017/18 cap projection earlier this week, but the forecast for the 2018/19 cap is new information. According to Pincus’ report, the reduction in the forecast for the next two years comes as a result of the new Collective Bargaining Agreement. As of July 2016, the league projected a $108MM salary cap for 2018/19, a far cry from Basketball Insiders’ latest report.

[RELATED: NBA’s July 2016 salary cap forecast]

With a projected $102MM cap in 2017/18, the starting figures for maximum salary contracts would be as follows:

  • Players with 0-6 years of experience: $25.5MM
  • Players with 7-9 years of experience: $30.6MM
  • Players with 10 or more years of experience: $35.7MM

In 2018/19, those numbers would increase to:

  • Players with 0-6 years of experience: $25.8MM
  • Players with 7-9 years of experience: $30.9MM
  • Players with 10 or more years of experience: $36.1MM