NBA Sets Salary Cap and Luxury Tax Level for 2012-2013 Season

Sam R. Quinn@SamQuinn_Senior Analyst IIIJuly 11, 2012

NEWARK, NJ - JUNE 28: NBA Commissioner David Stern poses prior to the first round of the 2012 NBA Draft at Prudential Center on June 28, 2012 in Newark, New Jersey. 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 Elsa/Getty Images)
Elsa/Getty Images

The NBA has announced the salary cap and luxury tax level for the 2012-2013 season.

According to Yahoo! Sports' Marc Spears via Twitter, the figures will remain exactly the same as last season:

NBA salary cap set for $58.044 million next season. Tax level is $70.3 million, and teams exceeding it pay $1 tax of every $1 over.

— Marc J. Spears (@SpearsNBAYahoo) July 10, 2012

As expected, the figures didn't change, meaning that teams are free to do as planned this offseason.

It may seem a bit harsh to have a $1 tax for every $1 over, but there's no other way to deter big-spending teams from blatantly ignoring the luxury tax and doing as they please.

Per NBA.com, the minimum a team must spend on their players' collective salaries has been set at $49.337 million, which is 85 percent of the maximum cap.

Teams should take advantage of this dollar-for-dollar luxury tax penalty while they can, because there will be a much higher penalty instituted prior to the 2013-2014 season.

Next season's taxpayer "mini" mid-level exception will be $3.09 million. The mid-level exception will stay at the 2011-2012 level of $5 million.

Every year, the players' association and the league have a meeting of the minds to determine what the salary cap will be for the upcoming season. Their decision stems from the projected Basketball Related Income, as well as other factors. 

There's little doubt that both the salary cap and the luxury tax level will rise as the revenue of the NBA as a whole does. The NBA is making more money than ever before, so there's no reason to think that the numbers for the coming seasons won't be striking.

This is what teams have been waiting for. Now that front offices know the salary cap and luxury tax level for sure, they will be able to sign various free agents with the July moratorium period coming to an end Wednesday morning, July 11, at 12:01 AM ET.

Related

    LeBron on Lakers Signing Melo: 'I Have No Idea'

    NBA logo
    NBA

    LeBron on Lakers Signing Melo: 'I Have No Idea'

    Joseph Zucker
    via Bleacher Report

    Report: Kings Could Make HC Change

    NBA logo
    NBA

    Report: Kings Could Make HC Change

    Mike Chiari
    via Bleacher Report

    Hottest Kicks from the NBA Night 🔥

    NBA logo
    NBA

    Hottest Kicks from the NBA Night 🔥

    Alec Nathan
    via Bleacher Report

    Dray (Toe) Getting Extra Time Off

    NBA logo
    NBA

    Dray (Toe) Getting Extra Time Off

    Joseph Zucker
    via Bleacher Report