HANG TIME HEADQUARTERS – The new numbers are out.
The NBA revealed its new Salary Cap figure for the 2013-14 season, which will be $58.679 million. The tax level for the season has been set at $71.748 million.
Those are slight increases from the 2012-13 numbers of 58.044 for the Salary Cap and 70.307 for the tax level, respectively. The new figures go into effect Wednesday at 12:01 a.m. ET. That is also when the league’s “moratorium period” ends and teams can begin signing free agents and making trades.
The minimum team salary, which is set at 90 percent of the Salary Cap, an increase from the 85 percent from last season, is $52.811 million. Teams will have to spend that figure of the cap figure on player salaries starting this season.
As expected there are new tax rates for the incremental spending above the tax level, with the league having done away with the previous $1 for $1 tax of the previous Collective Bargaining Agreement. The new tax rate schedule:
- Portion of team salary $0-$4.99 million over tax level: $1.50 for $1
- Portion of team salary $5-$9.99 million over tax level: $1.75 for $1
- Portion of team salary $10-$14.99 million over tax level: $2.50 for $1
- Portion of team salary $15-$19.99 million over tax level: $3.25 for $1
- Rates increase by $0.50 for each additional $5 million of team salary above the tax level.
The current Collective Bargaining Agreement provides for three different mid-level exceptions depending on a team’s salary level. The non-taxpayer mid-level for this season is $5.15 million, the taxpayer mid-level is $3.183 million and the mid-level for a team with room under the Salary Cap is $2.652 million.