Michael Dixon
The NBA salary cap will increase over the next few seasons. But the latest projections say that the increase will be less than originally expected.
In July, it was projected by Eric Pincus of Basketball Insiders that the 2017-18 salary cap would be $102 million, while the 2018-19 number would be $108. The 2017-18 number has remained unchanged in a new report, but the 2018-19 number has decreased.
“In a January memo attained by Basketball Insiders, the league informed teams that the 2017-18 cap is expected to be $102 million with a luxury tax threshold of $122 million,” a new report from Pincus said. “For 2018-19, the NBA estimates a cap of $103 million with the tax line at $125 million.”
This will have its greatest impact on the way that players — notably stars — sign contracts.
In recent years, stars like LeBron James and Kevin Durant have signed 1+1 deals. In effect, those are one-year contracts. The contracts are a way for those players to be sure their teams are keeping them happy, but most importantly it’s a way to maximize earnings. Signing a new contract every season with an increased salary cap is good for the bank account.
But if the cap isn’t going to increase as much, those deals will be far less prevalent. As a result, the 1+1 deals could go away. That would be good news for commissioner Adam Silver.
