2016 NBA Salary Cap

Understanding the spike in money across the league.

2016-17 Salary Cap: $94 million

2015-16 Salary Cap: $70 million

Why the Increase?

The NBA’s salary cap jumped from $70 million dollars per team to $94 million due to the TV money that is now currently kicking in. Due to their newly signed contracts with ESPN and TNT, the NBA will earn more than $2 billion per year as of the 2016-17 season. Next season, the cap is projected to rise above $100 million. This rise in the salary cap will result in much larger contracts, especially for seasoned stars.

However, it’s important to understand percentages. Although Timofey Mozgov is now earning $16 million per year (while Stephen Curry earns $12 million) sounds like a lot, it’s important to note what percentage of a team’s salary that represents. On its face, it seems like Mozgov is ridiculously overpaid. However, $16 million under the new cap is roughly 17% percent of a team’s salary. His new deal is the equivalent of a $11.9 million deal under the old cap. Below are comparisons to help you understand how these new deals look in comparison to the old cap.

  • Timofey Mozgov – Now: $16 million = Old: $11.9 million
  • Joakim Noah – Now: $18 million = Old: $13.3 million
  • Nic Batum – Now: $24 million = Old: $17.9 million
  • DeMar DeRozan – Now: $27.8 million = Old: $20.7 million
NOTE: The figures above are reported annual salaries being offered and my not be finalized or agreed upon. They are being used as examples to illustrate what a contract today would look like last season.

Max Contracts

Here is what a max contract looks like, courtesy of Basketball Insider‘s Steve Kyler:

via Steve Kyler

via Steve Kyler

For more information on the current CBA (Collective Bargaining Agreement), check out the guru, Larry Coon.

For the latest moves in the NBA, click here.

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