2013-14 NBA Salary Cap Figure Set at $58.679 Million

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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.

30 Comments

  1. jake says:

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  2. […] the guessing game is over for many of the players who have been waiting on this day. The salary cap figures for the 2013-14 season are set. And we’ll make sure you are updated on the latest, as these deals — which also includes that […]

    • Joshua Greenfarb says:

      I clicked your “2013 FREE AGENT TRACKER” link.

      Thanks for nothing.

      I love how people talk about the Lakers like they had the choice to re-sign Howard while ignoring the fact that doing so would have put their payroll over 100 Million.

      The Lakers are immune to CBA rules or salary cap figures. Why? They cheat so badly. Apparently, rules don’t apply to the Lakers.

  3. Erlo says:

    Wait, we are paying people to play a game?

  4. TimberPuppy says:

    I would like to know what the nets are paying in salary tax…? Doesn’t Joe Johnson and Deron Williams eat up about $40 of that $71.748 mill tax level just by themselves, and they just took on the remaining portions of Pierce, Garnett and Terry’s contracts. I think they’re $15, $11+, and $6 a year..? Thats creeping above the tax level with just those 5 guys alone this next year. I would like to break down the numbers of that total bill for this upcoming season.

    • Joshua Greenfarb says:

      I would like to know how the Lakers can have over 100 Million payroll?????????????????

  5. Rajiv Radia says:

    I wrote up an article explaining why teams will be unwilling to exceed the cap with the new rules in place: http://wp.me/p2wecE-a2

    • Joshua Greenfarb says:

      I looked at your article, and it clarifies NOTHING.

      No one seemingly has the guts to call out the Lakers for being able to go over 100 Million payroll anytime they feel like it.

      HOW CAN THEY AFFORD TO DO THAT?

  6. J says:

    I don’t care about this sort of stuff bye ha ha ha

  7. boydevon says:

    that’s why nba is protecting other teams that have small cap. in case no cap, lakers or knicks will have all the stars in the nba because they can afford to sign high caliber player, while those with not so enough money to spend, they have to contend on second fiddle players.

    but with the cap, everybody is on the same page and franchise players will be distributed evenly to the league.

    thanks to david stern, because of the cap, nba became an exciting sports around the globe.

    • Joshua Greenfarb says:

      It isn’t working!

      The Lakers had a 100 Million payroll last season. If you don’t believe me, I can refer you to the URL.

      The CBA is still not working!

      Lakers tried to sign “all the stars in the nba” while being somehow able to pay Kobe Bryant 30 Million a year.

      Are they cooking the books?

      IT’S A CONSPIRACY!! HAHAHA!!

    • Joshua Greenfarb says:

      If everyone was on the same page, imagine if the Thunder could/would have a 90 million or even only 80 million payroll instead of their current 55 million payroll.

      They would build a dream team that would go down in history as one of the greatest teams in NBA history. But they aren’t on the same page as teams like the Lakers.

      LAME!!

      Smaller-market teams suffer more than ever under the CBA. While teams like the Lakers get to do whatever they want and break all the CBA rules. How? Are they cooking the books? :-)

  8. Anon says:

    So if this is correct, Miami is going to have to drop ~$35 million just in luxury tax this coming season?

  9. thisamateurguy says:

    ok so new owners has to be heavy criminals, and dirty money will pay all of that (and the title)
    welcome to the football world ;)) (the real one, not the american FOOTball, played with the HANDS, without foots. lol.
    well, flops and taxes, it will be AMAZING, it will happens :)

  10. Scottie Fox says:

    Do the extra taxes go to the NBA or the IRS?

    • superlolo says:

      Not sure but Sterns POCKET IS SO BIG, NOW WE KNOW WHY!

    • xeno75 says:

      They go to the league and are split among Teams not paying taxes i think.

      • Joshua Greenfarb says:

        @xeno75

        OKC Thunder looks like they’re going to be a non-tax-paying team. Thanks, Lakers. Some of that money now goes to the Thunder.

        Plus, the Thunder are going to win the 2014 NBA Championship (even without the great Kevin Martin), and they’re going to do it while being under this so-called Salary Cap Figure Set.

  11. lakersfan4life says:

    I don’t know but it Looks Like is very steep,

    • Joshua Greenfarb says:

      Hey Laker fan,

      How did the LA LAKERS have a 100 Million payroll last season???? That’s almost double the salary cap.

      Especially since Fox Sports no longer hosts the Lakers’ games. So some second-rate channel now hosts Laker games.

      How could/can the Lakers afford all this?????????????????????????????????????????????

      How could they even afford trying to re-sign Howard at 20 Million a year?????????

      Are they cooking the books?

      You go to prison for that.
      :-)

  12. Ro says:

    so if the teams have a total salary of 58.679 M and the tax is 71 M (this for every team).. say a team, for argument sake, the Magic spend 77 M. This is 6 M over the tax. Therefore they are charged $1.75 per $1 over the tax.

    Simple math: $ 6 M x 1.75 = $10.5 M

    Therefore the Magic, theoretically would have to pay $10.5 M in taxes to the league.

    NOTE: M = million (1 x 10^6)

    hope that helps

    • Jorge says:

      Actually, the first $5M are taxed at $1.5/$1, so that gives $7.5M
      The remaining $1M is taxed at $1.75/$1, so that gives $1.75M
      The total tax for your example of being $6M over tax limit is $9.25M.

      I hope that clears it out.

  13. Sam says:

    Complicated
    if some-1 can give me example…

    • Example says:

      The cap is 58.679.

      If a team’s total salaried paid is over that, they owe money.

      If a team is at 62 million (they pay their players a combined 62 mill) , then they are 3.321 (62 – 58.679 = 3.321) over the cap.
      Therefore, they fall into this category : Portion of team salary $0-$4.99 million over tax level: $1.50 for $1

      So, that 3.321 mill will be taxed at “1.50 for 1″ .. or 1.50 x 3.321 = 4.9815 mill

      In summary, a team at 62 mill salary will owe an additional 4.9815mill in taxes (baring any exceptions), bringing their grand total in salary to 66.9815mill

      I hope ur not trolling – correct me if this is wrong

    • Hamish says:

      So say your team is 15 million over the tax cap.
      they will pay luxury tax of 28.75 million (5mil x $1.50 + 5 mil x $1.75 + 5 mil x $2.50)

    • jpman says:

      It is the budget for signing a player. It means that NBA teams are limited to sign whoever they want. It’s not going to be like an All-star team.