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| Name | How does the NBA salary cap work? |
| Video Uploader | Video From whatslaps |
| Upload Date | This Video Uploaded At 26-06-2022 15:56:23 |
| Video Discription | Salary Cap - The Salary Cap is calculated by multiplying projected Basketball-Related Income (or “BRI”) by 44.74%, less projected player benefits (like health and welfare benefits), and then dividing the result by 30 (the current number of NBA teams; if the NBA expands, to Seattle for example, that number isn’t increased for the first two years the expansion team is part of the league). The Salary Cap for the 2019-20 season is $109.14 million. The minimum team salary for the 2019-20 season is $98.226 million. (For context, the Salary Cap and the minimum team salary for the 2018-19 season was $101.869 million and $91.682 million, respectively.) Because teams can structure a player’s compensation in a number of ways, the CBA includes extensive rules for determining when and what part of a player’s salary is included in a team’s Team Salary and therefore counts towards the Salary Cap for a particular salary cap year. Basketball-Related Income - Basketball-Related Income or “BRI” generally includes all income that teams receive from their basketball operations. The specific definition is mind-numbing, covers almost 35 pages, and will make you thankful you’re not an auditor (or, if you are an auditor, guarantee your employment for many years to come once you get your arms around it). Any item that is included in BRI under the CBA benefits players, as it will increase the Salary Cap. Increasing the Salary Cap has a cascading effect on the amount of compensation each player can make. The definition includes a truly wide range of basketball-related income — from “sales of jersey patch rights” (note, these patches were not even on jerseys at the time the CBA was signed), to arena signage that is displayed during regular season games and “at least 75% of non-NBA events,” to a portion of arena naming rights deals, to “gambling on NBA games or any aspect of NBA games” (note, this gambling-related income was included before the US Supreme Court paved the way for states to legalize gambling), and even to proceeds from a team’s NBA championship parade. Tax Threshold - The Tax Level is the monetary threshold that once a team’s Team Salary hits or exceeds it is required to pay a tax to the league. (For example, for the first $5 million that a team’s Team Salary exceeds the Tax Level, that team must pay $1.50 for every $1.00 they’re above the Tax Level.) The Tax Level is set each year by multiplying BRI by 53.51%. The Tax Level for the 2019-20 season is $132.627 million. Tax Apron - The Tax Apron is the amount above the Tax Level that cannot be exceed by any team that uses the non-taxpayer mid-level exception or the bi-annual exception, or by any team that acquires a free agent in a sign-and-trade. When the Tax Apron applies to a team, it serves as a “hard cap” that the team cannot exceed under any circumstances. The Tax Apron for the 2019-20 season is $138.928 million. (Because there were so many sign-and-trade transactions during the 2019-20 free agency period, along with a few teams that used the non-taxpayer mid-level and bi-annual exceptions, half of the league is hard-capped.) The Tax Apron amount increases (or decreases) each year at one-half the rate of increase (or decrease) in the Salary Cap. Stretch Provisions - When a team terminates a player’s contract (normally through the waiver procedure), the team may then “stretch” the terminated player’s compensation for Salary Cap purposes by allocating his remaining salary over more years than the actual contract’s length. This rule is the same as the automatic stretch provision that applies to the actual timing of when a team pays a waived player’s protected compensation. Unlike that rule (which is automatic), a team can choose whether or not it wants to stretch a player’s compensation for Salary Cap purposes. If a team elects to do so, the player’s remaining protected compensation is stretched over twice the number of years remaining on the contract plus one more year. If a team waives a player on or after September 1, then the current season’s salary cannot be stretched and only future seasons will be. |
| Category | Sports |
| Tags | nba salary cap | nba cap space | nba tax apron | nba luxury tax | nba tax | nba tax threshold | nba luxury tax threshold | nba dead cap | nba strech provision | NBA stretch provisions | salary cap | nba soft cap | nba tax exception | nba payroll | how does the soft cap work? | how does salary cap work? | nba | nba salary | salary cap nba exception | nba salary exception | nba cap | nba luxury tax apron | tax apron nba |
