Introducing the New, Lower Salary Cap

by July 08, 2009

by Marcel Mutoni

As expected, with the world economy being what it is, the NBA’s salary cap was reduced for the ’09-’10 season.

Here’s the official press release from the L:

The National Basketball Association today announced that the Salary Cap for the 2009-10 season will be $57.7 million. The tax level for the 2009-10 season has been set at $69.92 million. Any team whose team salary exceeds that figure will pay a $1 tax for each $1 by which it exceeds $69.92 million.

The 2008-09 Salary Cap was $58.68 million and the tax level was $71.15 million. Although league-wide revenue increased 2.5% this past season, the decrease in the Salary Cap and tax level for the 2009-10 season is the result of the formula used to set the Cap and tax under the terms of the collective bargaining agreement,

The mid-level exception, a friend to GMs everywhere, is now set at $5.85 million.

All in all, it’s not entirely bad news for NBA teams. A difference of about $1 million in cap space between this year and last year won’t change a whole lot League wide.

It will likely be the marginal players – many of whom are sweating it out in the Summer Leagues – who will feel the financial pinch the most, since there will be less jobs to go around.