Cap set at $57.7M; Seven to pay luxury tax

The NBA salary cap for the 2009-'10 season dropped to $57.7 million, and the luxury tax threshold to $69.2 million, the league told its teams Tuesday night.

The mid-level exception is set at $5.854 million.

In the private memo to teams, the NBA reported what the seven franchises paying luxury tax had to give up to the rest of the league. The list included: The New York Knicks ($23.7 million), Dallas Mavericks ($23.6 million), Cleveland Cavaliers ($13.7 million), Boston Celtics ($8.29 million), Los Angeles Lakers ($7.1 million), Portland Trail Blazers ($5.8 million) and Phoenix Suns ($4.9 million).

The 2008-’09 salary cap figure was $58.68 million, and the luxury tax level was $71.15 million. The salary cap and tax figures are reached through a formula based on league earnings.

Teams must pay an additional dollar for every dollar they are over the tax. The new figures go into effect Wednesday at 12:01 a.m. ET, when the moratorium on free-agent signings end.