NBA Roundtable

Salary Cap Is Set

In General NBA on July 7, 2009 at 9:40 pm

RealGM has the press release

The National Basketball Association today announced that the Salary Cap for the 2009-10 season will be $57.7 million. The tax level for the 2009-10 season has been set at $69.92 million. Any team whose team salary exceeds that figure will pay a $1 tax for each $1 by which it exceeds $69.92 million.The 2008-09 Salary Cap was $58.68 million and the tax level was $71.15 million. Although league-wide revenue increased 2.5% this past season, the decrease in the Salary Cap and tax level for the 2009-10 season is the result of the formula used to set the Cap and tax under the terms of the collective bargaining agreement.

The new Salary Cap and tax level go into effect at 12:01 a.m. ET on Wednesday, July 8, when the league’s “moratorium period” ends and teams can begin signing free agents and making trades.

The mid-level exception is $5.854 million for the 2009-10 season and the minimum team salary, which is set at 75% of the Salary Cap, is $43.275 million.

Important Figures

Cap and Tax figures

  • Salary Cap — $57.7 million
  • Minimum Salary Cap — $43.275 million
  • Luxury Tax Threshold — $69.92 million

Mid-Level Exception

  • Starting salary — $5.854 million
  • Over five years — $34.07 million


The cap fell by close to $1 million which is good news. A decrease but only a minor one. This was a figure that has been mentioned over the past few weeks.

The luxury tax threshold fell, but was half a million more than the figure named in David Stern’s midseason memo, which is great news for teams over the cap.

The midlevel exception rose to $5.85 million. Good news for all those MLE players, earns them about $2 million more over five years than my conservative $5.5 million estimate.

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