NBA announces 2014-15 salary cap, rises to all-time high
The NBA salary cap is making a jump to an all-time high this year. The league announced this afternoon that the salary cap has increased to $63.065 million, which is a 7.5 percent increase from last season. The minimum team salary, meanwhile, is set at $56.759 million for the upcoming season.
In addition to an increase in the salary cap, the tax level for this year has risen as well. The league announced that the luxury tax threshold for the 2014-15 season is set at $76.829 million, which is about a 7.1 percent increase from last year.
The NBA’s collective bargaining agreement also allows three types of mid-level exceptions depending on a team’s salary level. The non-taxpayer mid-level is set at $5.305 million, the taxpayer mid-level is $3.278 million and the mid-level for teams under the salary cap is $2.732 million. The Kings are expected to sign point guard Darren Collison to a three-year contract with the full non-taxpayer mid-level.
Rookie Nik Stauskas is expected to make $2.3 million in the first season of a four-year contract. With Collison and Stauskas on the books, the Kings’ current team salary stands at $73.5 million, which puts them $3.3 million under the tax line. They can create more room under the tax threshold by waiving a player using the NBA’s stretch provision.
The new salary cap and luxury tax go into effect later tonight at 9 pm PT when the league’s moratorium period ends. Teams will be allowed to start signing free agents and making trades at that point.