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The NBA salary cap is the limit to the total amount of money that National Basketball Association teams are allowed to pay their players. Like the other major professional sports leagues in North America, the NBA has a salary cap to control costs and benefit parity, defined by the league's collective bargaining agreement (CBA).
The NBA salary cap is the maximum dollar amount each NBA team can spend on its players for the season. However, the NBA uses a "soft" salary cap, which allow NBA teams to exceed their allotted amount in order to sign players through significant "salary exceptions". The salary cap is determined during the offseason, but is liable to change. [2]
In addition to the soft cap, the NBA utilizes a luxury tax system that is applied if the team payroll exceeds a separate threshold higher than the salary cap. These teams pay a penalty for each dollar their team salary exceeds the tax level. From 2002 to 2013, if a team exceeded the luxury tax threshold, they must pay one dollar to the league ...
Other teams, however, are overleveraged and butting up against not just payroll issues but also the NBA’s complicated luxury tax system and their owners’ individual financial woes as yet ...
Given the state of the NBA in 2025, a Thunder-Cavaliers series is realistic, and the teams with the best records in the league play each other Wednesday in Cleveland (7 p.m. ET, ESPN).
Per recent NBA rules implemented as of the 2024–25 season, teams are permitted to have three two-way players on their roster at any given time, in addition to their 15-man regular season roster. A two-way player will provide services primarily to the team's G League affiliate, but can spend up to 50 days with the parent NBA team.
The collective bargaining agreement (CBA) of the National Basketball Association (NBA) is a contract between the league (the commissioner and the 30 team owners) and the National Basketball Players Association (NBPA), the players' union, that dictates the rules of player contracts, trades, revenue distribution, the NBA draft, and the salary cap, among other things.
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