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Report: NBA salary cap expected to increase to $63.2 million, luxury tax to $77 million

Apr 21, 2014, 12:07 PM EDT

Taj Gibson, Carmelo Anthony, Carlos Boozer Taj Gibson, Carmelo Anthony, Carlos Boozer

The NBA won’t officially compute next season’s salary cap and luxury-tax line until July, but estimates are always helpful in projecting what options teams will have this offseason.

Marc Stein of ESPN:

Sources told ESPN.com that all 30 teams were informed this week via league memorandum that an increase in the cap from this season’s $58.6 million to $63.2 million in 2014-15 — thanks to increased revenues — is now expected. A corresponding rise in the luxury-tax threshold from $71.7 million to $77 million is also projected, sources said.

This will affect every NBA team, but any with cap space this offseason will be happy with the large rise, as will any facing a luxury-tax bill. Here are few examples of how this projection affect teams:

  1. spursareold - Apr 21, 2014 at 12:42 PM

    Hmmmmmmmm. Heat facing luxury tax hell, and a breakup, and suddenly, the cap and tax jump sharply. It’s a miracle!!!!!!!

    • redbaronx - Apr 21, 2014 at 1:19 PM

      @spursareold – I don’t know why you jumped to a conspiracy theory. The NBA was bound to make more money this season in an upward trajectory of the economy in the last year, increased sales, and further distance from the lockout. The cap is based on a percentage of total NBA profits every year, so this has nothing to do with a “decision” being made. This is purely the percentage increase in sales that raised the cap.

      • therealhtj - Apr 21, 2014 at 1:47 PM

        The cap projection was 62.8 a couple of months ago. Another 400K really shouldn’t come as some huge surprise and it really doesn’t make much difference to already cap strapped teams.

      • redbaronx - Apr 21, 2014 at 1:48 PM

        @therealhtj – Exactly. Thank you.

      • sportsfan18 - Apr 21, 2014 at 5:07 PM

        It still hasn’t been finalized yet…

        But it isn’t going to change much from what they’ve said either…

    • Kevin S. - Apr 21, 2014 at 1:22 PM

      That dastardly NBA, going out and making extra money just so the Heat can afford to keep their team together.

      • casualcommenter - Apr 21, 2014 at 4:01 PM

        Definitely not a Heat fan, but I agree that his comment is just stupid. The salary cap is defined in the current Collective Bargaining Agreement as a percentage of revenue. The salary cap increases automatically if revenue increases.

        What he’s alleging is that the NBA as a whole only worked to increase their profits this year specifically to help the Miami Heat by raising the luxury tax line, which as I said, is stupid.

        The NBA does its best to make more money because NBA owners, like most businessmen, enjoy making money…not because they’re colluding together to help the Miami Heat (which only 1 of 30 owners own).

    • azarkhan - Apr 21, 2014 at 1:40 PM

      As if the Spurs couldn’t use more cap space given the high priced veterans they have under contract. LOL.

      • sportsfan18 - Apr 21, 2014 at 5:08 PM

        Might wanna compare what Duncan is making to what Kobe is making…

    • miamatt - Apr 21, 2014 at 3:38 PM

      Yeah, it makes sense to create a CBA with the intent of breaking up the Heat and then undermining that by artificially inflating the cap a few years later.

      I’m pretty sure the cap and luxury tax thresholds are determined by a formula based on league revenue, not the whims of shadowy NBA forces anyway.

      • eventhorizon04 - Apr 21, 2014 at 4:21 PM

        The luxury tax line is calculated as a percentage of revenue, so by arguing the luxury tax line only went up to help the Heat, Spursareold is alleging that all 30 NBA teams, including the Spurs, worked to increase NBA revenue specifically to help the Miami Heat.

        It’s honestly incredible how stupid some people on this site can be – “The NBA works hard to increase revenue each year to help the Heat, not the other 29 other teams. It’s all a conspiracy to help the Heat! The owners of the other 29 NBA teams all are secretly Miami Heat fans!”

  2. cantonbound13 - Apr 21, 2014 at 12:56 PM

    It doesn’t matter, the Spurs are going to win it all this year anyway. They blew it last year.

    • alfiemonstaa - Apr 21, 2014 at 1:32 PM

      lol!! ok

    • leahcima1 - Apr 22, 2014 at 8:24 AM

      Still flopping around like a fish out of water. 10,000 predictions, 10,000 wrong. It looks like the law of averages was repealed for jerkoffcanton.

      • cantonbound13 - Apr 23, 2014 at 11:51 AM

        Loser. That’s based on your theory.

  3. cantonbound13 - Apr 21, 2014 at 12:58 PM

    The Heat could lose the self proclaimed top point guard in the league? How will they ever survive?

    • redbaronx - Apr 21, 2014 at 1:22 PM

      @cantonbound13 – Sarcasm aside, losing Chalmers would be a big loss for the Heat. They don’t have an adequate PG backup as it is. Some big boy decisions for Riley this summer.

      • leoimpr - Apr 21, 2014 at 5:10 PM

        we can find a guard for 1 million dollars better than Chalmers, he is mediocre at best

      • Kevin S. - Apr 21, 2014 at 6:22 PM

        If it’s so easy, why haven’t they done it yet?

      • leahcima1 - Apr 22, 2014 at 8:27 AM

        I think they haven’t replaced Rio because they keep getting to the finals and winning championships with him. Don’t fix what aint broken.

  4. rexgrossman8 - Apr 21, 2014 at 1:03 PM

    This helps the Lakers as well, right?

    • unxpexted1 - Apr 21, 2014 at 2:16 PM

      I was actually thinking that, almost gives them the room they would have had if Kobe took a paycut.

      • bkbell3 - Apr 22, 2014 at 1:48 AM

        I think they gave koby to much but you do understand that koby took a cut in pay down from 30mil to 23mil.

  5. bendover09 - Apr 21, 2014 at 1:03 PM

    Big news for Dallas fans !

    • alfiemonstaa - Apr 21, 2014 at 1:30 PM

      why? mffl!!

  6. azarkhan - Apr 21, 2014 at 1:32 PM

    If the Bulls amnesty Carlos Boozer, my understanding is that they will still have to pay him $16.8 million dollars (his salary for 2014-2015). What is there in owner Jerry Reinsdorf’s history that makes you think he will pay Boozer $16.8 million dollars to simply go away?

    • redbaronx - Apr 21, 2014 at 1:40 PM

      @azarkhan – I agree. The amnesty is just for the cap number, but the Bulls would still be obligated to pay Boozer his contract. Jerry is notoriously stingy and I can imagine him keeping Boozer just so he’s not paying 16.8 mil for nothing.

      Good call!

      • chicitybulls - Apr 21, 2014 at 8:27 PM

        Jerry will have to pay Boozer the balance between what his new team is paying him and his salary. Jerry will only be held to the whole 16.8 if no team picks Boozer up and I dont think anyone thinks that no one will pick him up, right? People get stuck on that “Jerry is cheap/stingy/etc” from 20+ years ago. He’s a smart business man and if there’s a chance that the team has a real legit chance to win he will pay the tax. It’s not like he’s never paid the tax before. Jerry also owns the White Sox and in previous years ran a payroll in the top 5 in the league before recently dropping that down. I guess people want every owner to be like Prokorov and just spend, spend, spend. The Bulls are the 3rd most valuable franchise in the NBA. As a Bulls fan, I’m ok with what he’s doing. Wait til the team has a legit chance to win then pay into the tax for years after that while you’re in contention.

      • redbaronx - Apr 22, 2014 at 8:58 AM

        chicitybulls – I have no problem with him saving a buck, but they had no business spending that much on Boozer in the first place. I thought it was a bad signing then, and more so now. After all, who leaves the Cavs with LeBron to go and play in Utah?

  7. shuttaman1990 - Apr 21, 2014 at 2:40 PM

    Lol sooooooooo Lakers are good?
    I mean this helps things with the kobe contract right?
    This is only the start.
    come draft day, you peons will be yelling murder and accusing us of highway robbery.
    But those are things that need to happen, the payback for Stern’s dreadful basketball reasons is nigh. NIGH IS SAY!
    Lakers all day

    • bucrightoff - Apr 21, 2014 at 3:12 PM

      Ummm, David Stern hates the Lakers? The 2002 Western Conference Finals strongly indicates otherwise.

      • mackcarrington - Apr 21, 2014 at 3:23 PM

        @bucrightoff:
        What does the rescinding of the Chris Paul trade indicate ?

      • bucrightoff - Apr 21, 2014 at 3:29 PM

        That if you look at one action you can make a conclusion. That if you look at the body of work, namely the Lakers during the Stern era, you’d be crazy, absolutely insane, to suggest he doesn’t love them.

        I mean David Stern literally said this: “If it were up to me the Finals every year would be the Lakers vs. the Lakers.”. So trying to help New Orleans, the franchise the NBA owned at the time (perhaps a bigger influence than “screwing” the Lakers?), is not the same as hating the Lakers. Sorry but Stern loved the Lakers (and Miami and New York and Boston and every non-small market team). Again, he’d literally have Lakers vs. Lakers if he could.

      • ranfan12 - Apr 21, 2014 at 3:55 PM

        Stern didn’t make Shaq shoot 12-16 from the free throw line and he didn’t make kobe get hot from 3 either lol. That’s all I gotta say

      • sportsfan18 - Apr 21, 2014 at 5:12 PM

        Uh, I wouldn’t be too sure of that…

        Stern had the Laker basket switched out at halftime and the new rim/basket that went up was another 6 inches across in diameter than the standard rim size…

        Stern couldn’t believe Shaq STILL missed 4 free throws…

      • mackcarrington - Apr 21, 2014 at 8:02 PM

        @bucrightoff:
        OK. Say that I buy your logic.
        Can you list the items in Stern’s “body of work” that indicate he gave advantages to the Lakers?
        And please be realistic.

      • ranfan12 - Apr 22, 2014 at 4:21 PM

        Must’ve been some tough love then when he vetoed that CP3 trade. Must’ve had a grudge to not let one of the best PGs in the league team up with Kobe lol

  8. mackcarrington - Apr 21, 2014 at 2:43 PM

    What do you think about the sales of those T-shirt jerseys now?
    Some marketing people know what they are doing.

    • asimonetti88 - Apr 21, 2014 at 3:32 PM

      Majority of sports money comes from advertising and television broadcast deals. The amount of money brought in by merchandise pales in comparison to that.

      • mackcarrington - Apr 21, 2014 at 8:05 PM

        I’m not comparing merchandise money to TV and ad money but it all goes into the same pot and contributes to the overall bottom line. And I wouldn’t imagine that merchandising money is exactly peanuts, either.

  9. johnheisman - Apr 21, 2014 at 2:45 PM

    Could someone explain to me the relevance of the salary cap? It seems to me the important number is the luxury tax limit and the penalties for repeat offenders.

    John

    • Kevin S. - Apr 21, 2014 at 3:46 PM

      While there are various machinations for getting around the cap, having the space to sign top free agents still matters. If they had lacked the space to sign Dwight Howard outright last year, Houston’s only option would have been a sign-and-trade, which requires the Lakers to play ball and gives them a lot of leverage if they do.

    • casualcommenter - Apr 21, 2014 at 4:10 PM

      The CBA restricts what types of contracts teams can offer and the types of trades they can make depending on whether they’re under the salary cap, above the cap but under the luxury tax, or over the luxury tax line.

      That’s why it’s called a “soft cap.” Unlike a “hard cap,” which is a firm spending limit, teams can spend over the “soft cap,” but there are restrictions to what contracts they can offer.

  10. money2long - Apr 21, 2014 at 3:13 PM

    How do teams in the east help Chicago clear cap room knowing they are trying to build a three headed monster ?
    I also hear some teams are jealous of the contract Phil Jackson got and it will be hard for him to hold a good team in NY because some of the team gm’s won’t help him out of spite.

    • money2long - Apr 21, 2014 at 3:16 PM

      Build * not hold. But I guess it still makes sense either way

    • Kevin S. - Apr 21, 2014 at 3:48 PM

      It depends on the sweeteners. Ultimately, you have to look out for your own team’s best interests. And if you’re Boston or Philly or anybody in a long-term rebuild, what do you care about how good Chicago gets right now?

    • casualcommenter - Apr 21, 2014 at 4:14 PM

      The Cavaliers and Raptors quietly helped the Heat form the Big-3 by agreeing to sign-and-trades of their star players, despite both being in the East and therefore competitors to the East.

      The teams hated doing it, but those franchises agreed because the alternative was losing their former franchise players for nothing.

      The Heat had to give away multiple first and second round picks to make the trades work, but logic and reason prevailed over emotion.

      • casualcommenter - Apr 21, 2014 at 4:14 PM

        *therefore competitors to the Heat

      • money2long - Apr 21, 2014 at 5:20 PM

        Lol. Great job casual. That’s my point. Thx for elaborating on teams helping other teams build these strong teams. Your comment did nothing. Kevin’s response is more of what I was looking to hear

  11. irvfin3 - Apr 21, 2014 at 8:00 PM

    I don’t think should trade Gibson at all let Anthony take the money from amnestying Boozer and trading Dunleavy. Gibson helps better the defense and starting lineup surrounding Melo if he goes to Chicago.

  12. marcusfitzhugh - Apr 21, 2014 at 11:13 PM

    I wonder what the fans reaction would be if the Rockets and Bulls both strip their clubs down to nothing and amnesty everyone they can, only to find that Melo re-signs with the Knicks and those amnestied players sign veterans minimum contracts to play in NYC. Being out of the playoffs, don’t the Knicks qualify as one of the first in line for players that have been released?

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