For teams to be able to plan their moves, they need to have a salary cap projection. That’s why the NBA is in constant communication with teams to let them know what the outlook is. For instance, a month ago, teams were notified that the projected cap for the 2020/2021 season is around $116 million. That means the NBA projected the cap would go up approximately $7 million compared to this season. Then Daryl Morey tweeted.
All basketball-related income is divided between the owners and players. Everything that was made gets split up, and the player’s part is shared via salaries. Let’s say $10 billion is made, and half of it goes to the players – that’s $5 billion. Divide $5 billion with 30 teams, and you get $166 million per team – that would be the salary cap for a team in this scenario.
Rough estimates value the NBA’s business in China at around $4 billion. With such a large amount of money at stake, the cap projections the teams received are under revision. Yahoo Sports reported that team cap experts are considering the possibility of a cap decrease between 10% and 15%. That would represent a decrease between $11.6 million and $17.4 million of the current projection.
This would not only take some teams out of the free-agent market (which isn’t so appealing if we’re honest), and reduce all contract levels (max contract, rookie scale, etc.) but a significant number of teams would suddenly be in luxury tax zone. (via Yahoo Sports):
“I haven’t really been in this spot before. The cap has only gone up in recent years. It’s really different. I have to wonder if the league would be pressed to consider some measures to not drop the cap down so far from where we are today at $109 [million]. Otherwise, a bunch of us are over the tax. It’d be nice to know
We’re getting the first projections of how much principles and free speech would cost — looking forward to hearing the Players Union and Board of Governors on this.