The NBA has informed teams that projections for the 2023-24 salary cap are higher than initially expected, multiple sources reported on Wednesday.
Per The Athletic‘s Shams Charania, the salary cap is expected to increase to $136 million, which is $2 million more than the initial projection given to teams in September by the league. Meanwhile, the luxury tax level is expected to be $165 million, a $3-million increase from the prior projection. ESPN also reported details of the projections.
Those numbers fall just under the 10 per cent maximum increase allowed under the league’s new collective bargaining agreement with the National Basketball Players Association (NBPA), which goes into effect on July 1.
The 2022-23 salary cap was $123.655 million, so the maximum increase allowed for next season’s cap and tax would be $136.021 million and $165.294 million, respectively. The exact numbers for 2023-24 will not be set until the NBA’s annual financial audit is completed later this month.