The National Basketball Players Association informed player agents that the salary cap is projected to rise to $120 million in 2020, which would be a jump from $94.1 million in 2016 and its projection of $103 million in 2017, sources told The Vertical.
In the NBA’s latest evaluation of the 2020 salary cap, it was projected to rise to $118 million, sources said.
The NBA and the NBPA finalized a new collective bargaining agreement last week, and the deal is on course to be ratified in January. The salary cap projection of $118 million to $120 million – with a projected $143 million luxury tax threshold – is a significant rise in a growing economy for the league.
With the $120 million cap figure, max salaries would be $42 million annually for Tier 1, $36 million for Tier 2 and $30 million for Tier 3.
The NBA and the NBPA have been proactive in recent days to explain the new changes to all respective parties. The NBA and its players have seen immense raises in the salary cap because of the league’s nine-year, $24 billion television deal that began this season and various branding deals.
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