NBA Salary Cap 2021 Explained

NBA Salary Cap 2021: How much each NBA team can spend on players salaries for the next 3 NBA seasons

The governing body of the most famous basketball tournament globally, the NBA, has announced salary caps for the next three seasons. According to reports, the NBA salary cap projections will be introduced from the upcoming 2021-22 NBA season and will stay until the 2023/24 season.

NBA has cited financial losses incurred during the pandemic as the main reason for implementing the salary cap. The tournament had to suffer heavy losses during the pandemic as the number of games were cut short for the 2020-21 season, and no spectators were allowed. The NBA salary cap for the 2020-21 season was $109 Million, while the luxury tax was $132.6 Million.

NBA Salary Cap and Luxury Tax Projections

SeasonSalary CapLuxury Tax
2021-22$112 Million$136.6 Million
2022-23$115.7 Million$140 Million
2023-24$119.2 Million$144.9 million

The NBA is trying to compensate for the incurred losses over a longer time instead of one or two seasons. The league will decrease the losses faced by the players in the upcoming season.

 At least 10 per cent of players’ salaries will be put into an escrow account, and they are set to lose around 20% of their salaries. Losses exceeding 10 % will be distributed over three seasons.

When is the 2021-22 NBA season?

After a pandemic hit season, NBA will return to complete normalcy from the 2021-22 season. The new season of the NBA is set to commence on 19 October 2021. Check NBA Schedule 2021-22

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