At the end of 2020, the NBA announced to franchises that, despite the crisis, the « salary cap » would be preserved from a possible decline in the years to come. The league has kept its word according to information from The Athletic.
Our colleagues announce that the NBA has given its projections for the salary cap and the « luxury tax » for the 2022/23 season. The authorized payroll next season should be 121 million dollars and the “luxury tax” would be set at 147 million.
We are therefore two million dollars more than what was previously announced and, for comparison this season, the salary cap is at 112.4 million dollars and the luxury tax at 136.6 million.
Sources: The NBA has informed teams of projected salary cap and tax level in 2022-23 — $121M and $147M, both are $2M higher than previous estimates.
— Shams Charania (@ShamsCharania) February 4, 2022
– Salary cap : this is the payroll defined by the NBA. For the next season, it was announced at 115 million dollars, but could therefore drop to 95 or even 85 million. NBA franchises have the ability to override it when extending their own players or through “exceptions.”
– Luxury tax : in the NBA, the salary cap is not strict, and the NBA allows the richest franchises to exceed the threshold set with a tolerance margin of about 20%. In this case, next year, the franchises would normally have been able to spend up to $139 million. Then, for every dollar spent above this cap, franchises must pay the “luxury tax” to the NBA. A kind of tax that can be very expensive, and candidates for the title usually pay tens of millions of dollars each year. A sum then paid back to the franchises, good students, who did not pay the “luxury tax”.
