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|
|3||Los Angeles Lakers||81,448,028||-22,769,028|
|4||New York Knicks||79,546,978||-20,867,978|
|Luxury Tax Threshold — 71,748,000|
|8||Oklahoma City Thunder||67,794,070||-9,115,070|
|11||Los Angeles Clippers||60,268,592||-1,589,592|
|Cap Maximum — 58,679,000|
|13||Portland Trail Blazers||56,837,629||1,841,371|
|Cap Minimum — 54,805,000|
|18||Golden State Warriors||52,023,460||6,655,540|
|21||New Orleans Pelicans||49,210,089||9,468,911|
|22||San Antonio Spurs||41,663,028||17,015,972|