The 2017-18 basketball salary cap has been set at $99 million by the NBA, lower than the earlier prediction of $101 million, as stated by multiple reports.
This cap jump still represents a 5% increase over the $94 million level set in 2016-17. However, considering that 2 years back the NBA had predicted the cap could increase to $108 million by this coming season, seeing it simply shy of $100 million is a shocker.
This new salary cap governs the amount of money teams can use for their payroll before contract exceptions become effective. The luxury tax threshold, maximum salaries of individual players, along with other items is likewise determined by this cap.
The NBA set the salary cap annually through complex strategies where the league tries to make sure players are jointly paid about what they permitted under the collective bargaining agreement. It means players take home approximately 50% of the income related to the basketball league.
Reports show that the luxury threshold is placed at $119 million.
A salary cap of $99 million implies that for the veteran free agents such as Kevin Durant, $34.65 million will be the minimum annual salary. Kevin, because of his Bird rights circumstances, is going to be entitled to a maximum contract of 4 years, amounting to $148 million. A player like Gordon Hayward, who did not activate the Designated Player rule, and has fewer years of service in the NBA, is going to be entitled to a 5-year contract of $170 million from the Jazz or a 4-year contract of $127 million from another team.
In 2016-17, the salary cap experienced a huge rise because of a new rights deal by national television broadcast becoming active. It resulted in most teams to experience substantial cap space. Since not all basketball teams exhausted their space in the offseason of 2016, some teams entered the free agency period on 1st July with substantial space at their disposal.