We knew there was going to be a big increase in money available in the NBA this summer. The salary cap was originally expected to jump from $70 million this season to $92 million this summer, but it's going to be even more than that. According to Shams Charania of The Vertical, the salary cap for this summer will be $94 million.
That puts the salary floor at $85 million and the luxury tax threshold at $113 million. Max contracts will begin at either $22 million, $26.4 million, or $30.8 million for next season depending on how long the player has been in the NBA. From The Vertical:
The NBA's projected salary cap and tax level of $94 million and $113 million, respectively, have increased since the previous estimates done by the league and its players' union.
The maximum player salaries are now expected to be $22 million for tier 1, $26.4 million for tier 2 and $30.8 million for tier 3.
It's not a dramatic increase but it shows the league is in a healthier financial situation than previously projected. With the new television deal kicking in, the league's revenue is at an all-time high and the impact on free agency could be unprecedented. In 2010, the league's salary cap was $57.7 million. That means in six years, we've seen a 162% increase.
It's estimated that roughly 25 teams will have enough cap room to offer at least one max contract this summer. With a weak free agent class and all of this money available, expect some head-scratching contracts to be passed around.