NBA Salary Cap Changes

Hot Stove New YorkSenior Writer IJuly 8, 2009

NEW YORK - JUNE 25:  NBA Commissioner David Stern speaks prior to the start of the 2009 NBA Draft at the Wamu Theatre at Madison Square Garden June 25, 2009 in New York City. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and/or using this Photograph, User is consenting to the terms and conditions of the Getty Images License Agreement.  (Photo by Jim McIsaac/Getty Images)

The NBA salary cap is estimated to drop between $50.4 million and $53.6 million for the 2010-2011 season. The figures for this upcoming season have the cap at $57.7 million per team. This is down $1 million from $58.7 from the previous campaign. Commissioner David Stern notes the changes were based on the economic recession.

ESPN writes that the Knicks will be one of the teams most affected by the reduced cap. New York planned on luring Lebron James with the idea of pairing him with another marquee free agent in 2010. However, if this move goes through then the franchise can sign only one player to a maximum contract. The Knicks have to pay $23,736,207 in luxury tax for having a payroll over $71.15 million.

The NBA announced that the luxury tax would be set at $69.92 million next season. The league also announced that the mid-level exception (MLE), a salary option for teams over the cap, would be $5.854 million next season, up from $5.58 million.