The NBA has officially released its salary cap projection for the 2025/26 season, affirming a substantial 10% increase. The projection stays in line with the league's earlier estimates and is the highest permissible increase under the existing Collective Bargaining Agreement (CBA).
Consequently, the salary cap for the next season is projected to increase from $140.6 million to $154.6 million, giving teams a more accommodating financial environment.
Effect of the Salary Cap Increase
As reported by ESPN's Bobby Marks, the anticipated rise in the salary cap will not just impact player compensation but also have a bearing on luxury tax ceilings and apron thresholds.
With the increase in the salary cap, these financial milestones will also rise proportionately, providing teams with a bit more room to breathe. The new numbers are as follows:
- Luxury tax threshold: $187.9 million
- First apron: $195.9 million
- Second apron: $207.8 million
Why the Increased Salary Cap is Important to NBA Teams
The 2024/25 campaign was the first season in which all apron restrictions were fully in force. There was much stress for many clubs in coping with these restrictions, particularly in the aftermath of a low 3.4% salary cap rise this past offseason. An increase of 10% in 2025/26 and possibly a similar growth in the following years will give clubs greater leeway to operate within the cap and tax levels.
Media Rights Deal to Drive Further Growth
One key reason for the expected raise in the salary cap is the NBA's next highly paying media rights contract. With hopes of big revenue gain, the league is expecting sustained growth for the next several seasons. This rise will drive the apron figures upward, enabling teams to better strategize their rosters and control salaries with less restriction.
Which Teams Have the Most and Least Cap Space?
According to Spotrac, the Boston Celtics will be roughly $70 million above the cap. This suggests that the team has the least amount of flexibility. Meanwhile, the Brooklyn Nets will enjoy having the most cap space this summer. It still has $90 million available in salary cap.
The website also tells us that the New Orleans Pelicans and the Detroit Pistons are the only teams besides the Nets with over $20 million in space.
While a higher cap is a boon financially, it is also difficult for teams trying to remain competitive while keeping their payrolls under control. Teams that have operated on the apron in the past will have to change their approach as penalties and limitations under the apron intensify.
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