NBA Roundtable

High Cap Projection = $56 Million

In Free Agency, General NBA on April 16, 2010 at 3:22 pm reports

NBA commissioner David Stern said on Friday that the league is projecting the cap to come in at about $56.1 million. The actual number won’t be determined until early July, before teams can begin officially signing players.

Though that figure would still be lower than this season’s $57.7 million cap, it’s far better than estimates from last summer, when the league sent a memo to teams warning them of a potential sharp drop to between $50.4 million to $53.6 million.

Excellent news for everyone with cap space.

I thought the initial estimates for the cap were overly pessimistic, but still, I’m surprised the cap figure is going to be as high as it is. I thought it would be in the $54 million-to-$54.9 million range. Anyway, excellent news, increased opportunities to add talent for all squads with cap space.

I will be re-adjusting the posts for all the teams beneath the salary cap over the next few days to account for this change.

Luxury Tax

The salary cap is set at 49.5% of BRI while the luxury tax threshold is set at 60%.

So, a $56.1 million cap would equate to a $68 million luxury tax threshold.

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