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2020-21 Salary cap and luxury tax

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  • 2020-21 Salary cap and luxury tax$109M-Luxury-Tax-At-$132M-For-20-21-Season

    This isn't 100% set yet, but the sides are close to an agreement. The salary cap for the 20-21 season is expected to be $109 million with the luxury tax line at $132 million. Previous projections were $115 million for the salary cap and $139 million for the luxury tax.

    If the league were to keep the salary cap as a percentage of basketball related income, it would likely be approximately $90 million. The NBA and NBPA are artificially smoothing the cap in order to protect teams from exorbitant luxury tax payments and also to help the 2020 free agency class sign deals with future earnings tied to a percentage of the cap more aligned to what the figure would have been if not for the COVID-19 pandemic.

    Assuming all options and non-guarantees stay in place, Teams under the $109M salary cap:
    Atlanta Hawks $59.4 M
    Detroit Pistons $70.4 M
    Charlotte Hornets $81 M
    Miami Heat $82.4 M
    New Orleans Pelicans $83.2 M
    Toronto Raptors $86.1 M
    Phoenix Suns $91.7 M
    Minnesota Timberwolves $96 M
    Sacramento Kings $96.5 M
    New York Knicks $99.7 M
    Washington Wizards $101.2 M
    Chicago Bulls $106.1 M
    Oklahoma City Thunder $107 M
    Denver Nuggets $108 M
    Dallas Mavericks $108.2 M

    Teams between $109 M salary cap and $132 M luxury tax line:
    Cleveland Cavaliers $109.2 M
    Portland Trail Blazers $110 M
    Memphis Grizzlies $113.1 M
    Los Angeles Clippers $115.6 M
    Utah Jazz $117.9 M
    San Antonio Spurs $117.9 M
    Los Angeles Lakers $119.5 M
    Orlando Magic $122.3 M
    Indiana Pacers $124 M
    Houston Rockets $130.7 M

    Teams over the $132 M luxury tax line:
    Milwaukee Bucks $132.3 M
    Brooklyn Nets $140.3 M
    Boston Celtics $140.6 M
    Philadelphia 76ers $ 147.1 M
    Golden State Warriors $147.4 M

  • #2

    Agreement between NBA PA and the NBA on terms for this season:
    - salary cap will be set at $109.1 million, with the luxury tax at $132.7 million - which are the same numbers as the 2019-20 season
    - The salary cap is expected to increase between 3% and 10% per year for the remainder of the CBA.
    - The two sides also reportedly agreed that players can never have more than 20% of their salary withheld in escrow during a single season.
    - Reduce the luxury tax at the end of the 2021 season by the percentage that the league's Basketball Related Income decreases from its initial projections.

    Transaction window will open 2-3 days prior to the draft.
    NBA Draft will be held on Wednesday, November 18th.
    Free Agency will begin on Friday, November 20th.


    • #3
      Thanks for the info, f1do.

      I think you enjoy the game more if you don't know the rules. Anyway you're on the same wavelength as the referees. ~Jonathan Davies, 1995