NBA will artificially keep salary cap at $109 million

[bstein14]

Cap is set at $109 million this season with a $132 million luxury tax level and it will likely be set at the same # next year as well.

It would have dropped down to about $90 million if they didn't decide to keep it higher. What does this mean for Detroit? Less teams will be desperate to get under a luxury tax level and more teams will have cap room than just a few. There still won't be as much as the originally projected $115 million cap space this season if it wasn't for Covid.

Right now, 10 teams could have cap space above the MLE ($9.7 million) but its most likely only 6.

1. Atlanta $49 million (Teague could eat some up, but they will still have plenty to spend)
2. New York $48 million (have a bunch of non guaranteed contracts they could let go to get cap space now)
3. Detroit $37 million (Wood could eat some of this space up)
4. Sacramento $30 million (Bazemore and Bagdonovic are their FAs to decide on)
5. New Orleans $29 million (Brandon Ingram and Favors could eat this up)
6. Charlotte $26 million (They should be able to keep most of this)
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7. Miami $24 million - Would have to let Dragic and Crowder go, wants to preserve max for 2021. Only MLE if they keep Dragic.
8. Phoenix $20 million - Have to make decision on Baynes. Might only have MLE.
9. Toronto $19 million - Would have to let FVV and Ibaka go, wants to preserve max for 2021. Likely only to have MLE unless both leave.
10. Minnesota $14 million - Most likely to keep some FAs and only have MLE money to spend.

[thesack12]

I read that they are "artifically" keeping the cap at $109 so that they don't have a sudden drastic drop, thus screwing over this year's crop of free agents. Article also said they cap is still going to drop, it will just have a smoothing effect of around $20 mil drop over a handful of years. Like a lot of things its TBD what actually transpires...

Also we need to factor in draft picks into the OP's equation:

Atlanta will use around $6 mil on their draft pick
Knicks will use around $5 mil on their draft pick
Detroit will use around $5 mil on their draft pick
Charlotte will use around $8 mil on their draft pick
Phoenix will use around $4 mil on their draft pick
Minnesota will use around $10 mil on their draft pick

Sure there will likely be draft night trades that effect the above #'s, but those trades will likely include some veterans being moved as well which will obviously have further effect on those trading teams' cap figures. So for now, slotting them into the rookie scale is the best determinent.

[Billl]

Well, that is today's current leak, but it hasn't actually be agreed upon yet.

I'm not sure that makes a huge difference either way. More cap space + less desperate tax payers vs less cap space and more desperate tax payers.

I think the teams that are really going to make out this year are the top contenders. I imagine lots of guys are going to sign 1 year deals and just hope for a better environment next year.

[bstein14]

Well, that is today's current leak, but it hasn't actually be agreed upon yet.

I'm not sure that makes a huge difference either way. More cap space + less desperate tax payers vs less cap space and more desperate tax payers.

I think the teams that are really going to make out this year are the top contenders. I imagine lots of guys are going to sign 1 year deals and just hope for a better environment next year.

The reality is, a lot of stadiums will be at 25% to 50% capacity this season plus 10 fewer regular season games and likely no all-star weekend so a lot less money coming in they will likely have to artificially inflate it to $109 million again next year.

That said, I think some teams are going to wait to avoid long term contracts because the future revenue of the league is really uncertain right now. So I do think we could see a bunch of 1 year deals as well.

[Uncle Mxy]

I honestly don't know if keeping the cap "artificially" high helps or hurts us.