NBA 101 Wednesday: The Salary Cap

I recently posted an article regarding the NBA’s announcement of the 2007-2008 salary cap at 55.630 million.  To piggy-back on that article, we will discuss the NBA’s salary cap.

In the NBA, the salary cap is the maximum amount that teams are allowed to pay their players.  That amount changes each year, and is determined by a percentage of the league’s revenue from the previous season. 

The NBA sets a yearly cap across the board for each team.  This tactic keeps the league competitive by prohibiting teams that make more revenue from monopolizing the best players.

Now, unlike the NFL, the NBA has what is known as a “soft” cap.  This means that teams have several exceptions that allow them to exceed the salary cap to obtain players. 

In the following weeks, we will discuss each of those exceptions.


Review the Series:
Introduction:  NBA 101 Wednesday: The Salary Cap
NBA 101 Wednesday: Salary Cap Exceptions (Part 1/2)
NBA 101 Wednesday: Salary Cap Exceptions (Part 2/2)

2 Comments

  1. [...] Part 1 of our series on Salary Cap Exceptions.  These exceptions are used by teams to exceed the salary cap, and thus maintain the NBA’s ”soft” [...]

  2. [...] Review the Series: Introduction:  NBA 101 Wednesday: The Salary Cap NBA 101 Wednesday: Salary Cap Exceptions (Part 1/2… NBA 101 Wednesday: Salary Cap Exceptions (Part 2/2) – Final Thoughts: I hope you [...]


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