NBA Salary Cap is set…Now go sign!

NBA and money

The National Basketball Association announced that the Salary Cap for the 2013-14 season will have a slight increase from last year’s.  I rose from $58.044 million to $58.679 million and the Tax Level also rose from $70.307 million to $71.748 million.

Teams could not sign their “prized free agents” during the moratorium period because the cap was being calculated; as of Wednesday at 12:01 a.m. ET, the figures went into effect and teams had the green light to sign players and make trades.

The minimum team salary, which is set at 90 percent of the Salary Cap, an increase from the 85 percent from last season, is $52.811 million. Teams will have to spend that figure of the cap figure on player salaries starting this season.

Even though the tax level increased slightly, the penalties for exceeding it are harsher this season.  In the past, a team would pay $1 for every $1 they went over, now with the new Collective Bargaining Agreement, the payment has increased to $1.50 for up to $4.9 million over, with increases from there.

 

New Tax Rate Schedule

  • Portion of team salary $0-$4.99 million over tax level:          $1.50 for $1
  • Portion of team salary $5-$9.99 million over tax level:          $1.75 for $1
  • Portion of team salary $10-$14.99 million over tax level:      $2.50 for $1
  • Portion of team salary $15-$19.99 million over tax level:      $3.25 for $1
  • Rates increase by $0.50 for each additional $5 million of team salary above the tax level.

There’s three different mid-level exceptions provided by the new CBA.  The mid-level exception for non-taxpayers is $5.15M, it’s $3.2M for teams over the tax and there’s a mid-level worth $2.7M for teams with room under the salary cap.

In layman’s terms:

If  your team salary is over the cap space ($58.679 million),  your team cannot sign free agents easily like Dwight Howard going to Houston, only a sign and trade can be done.  Once your team salary is over $70.307 million,  that is when you will get hit with the taxes, this is when they start taxing you according to the rate.

As of right now, this is approximately how the NBA Cap Tracker looks:

Rank Team Estimated Total Cap Cap Space
1 Brooklyn Nets 97,714,185 -39,035,185
2 Miami Heat 86,464,629 -27,785,629
3 Los Angeles Lakers 81,448,028 -22,769,028
4 New York Knicks 79,546,978 -20,867,978
5 Chicago Bulls 78,872,929 -20,193,929
Luxury Tax Threshold — 71,748,000
6 Toronto Raptors 70,167,039 -11,488,039
7 Boston Celtics 68,161,918 -9,482,918
8 Oklahoma City Thunder 67,794,070 -9,115,070
9 Washington Wizards 67,377,810 -8,698,810
10 Memphis Grizzlies 62,587,153 -3,908,153
11 Los Angeles Clippers 60,268,592 -1,589,592
12 Houston Rockets 58,800,596 -121,596
Cap Maximum — 58,679,000
13 Portland Trail Blazers 56,837,629 1,841,371
14 Orlando Magic 55,755,597 2,923,403
Cap Minimum — 54,805,000
15 Utah Jazz 54,564,551 4,114,449
16 Phoenix Suns 54,315,563 4,363,437
17 Denver Nuggets 52,758,401 5,920,599
18 Golden State Warriors 52,023,460 6,655,540
19 Sacramento Kings 51,480,479 7,198,521
20 Indiana Pacers 51,174,707 7,504,293
21 New Orleans Pelicans 49,210,089 9,468,911
22 San Antonio Spurs 41,663,028 17,015,972
23 Minnesota Timberwolves 38,966,085 19,712,915
24 Dallas Mavericks 38,121,490 20,557,510
25 Philadelphia 76ers 37,837,609 20,841,391
26 Detroit Pistons 35,045,557 23,633,443
27 Charlotte Bobcats 32,383,091 26,295,909
28 Cleveland Cavaliers 31,604,098 27,074,902
29 Milwaukee Bucks 26,467,138 32,211,862
30 Atlanta Hawks 23,705,815 34,973,185
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