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