The NBA has informed its teams of a new salary cap projection for the 2020/21 season, reports Shams Charania of The Athletic (Twitter link). As Charania details, the updated projection calls for a $116MM cap and a $141MM luxury tax line for the ’20/21 campaign.
Previously, the NBA projected a $117MM cap with a $142MM tax line for 2020/21, so the new figures come in slightly below those marks. However, they’d still represent a substantial jump up from the cap figures for 2019/20, which are $109.14MM (cap) and $132.627MM (tax).
According to Charania, the league’s projections for 2021/22 remain unchanged, with the NBA still estimating a $125MM cap and a $151MM tax line for that season.
The updated figures won’t have a massive impact on teams’ plans for next summer, but every dollar counts when it comes to creating cap flexibility. Players who have signed maximum-salary contract extensions that take effect during the 2020/21 season will also take note of the league’s new cap estimates, since it will have a small impact on their projected earnings.
Sixers All-Star Ben Simmons and Nuggets guard Jamal Murray, for instance, signed maximum-salary extensions that will start at 25% of the cap next season, assuming neither player earns an All-NBA spot in 2019/20.
Under the previous $117MM projection, Simmons’ and Murray’s deals were expected to be worth $169.65MM over five years. A $116MM cap would reduce the projected value of those five-year contracts to $168.2MM.
Several other figures, including the rookie scale, mid-level exceptions, minimum salaries, and cash available in trades, are also linked to the percentage the salary cap increases from year to year and would be affected by the adjusted 2020/21 projection.
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