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The result is that the majority of teams are over the cap at any given time. 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.
The NBA salary cap is the limit to the total amount of money that National Basketball Association teams are allowed to pay their players. Soft salary caps allow teams to go above the salary cap but will subject such teams to reduced privileges in free agency.
what happens if a team goes over the Salary Cap? Answer: The short answer is simply that NO team CAN go over the Salary Cap. Note that every contract must go through the NFL League Office before the deal can be made official. However, they may not sign any players until there is room to do so under the Salary Cap.
Teams found to have violated the cap face fines of up to US$5 million, cancellation of contracts, loss of draft picks, loss of points and/or forfeiture of game(s) determined to have been affected by the violation of the cap.
Unlike the NFL and NHL, the NBA features a so-called soft cap, meaning that there are several significant exceptions that allow teams to exceed the salary cap to sign players. This is done to allow teams to keep their own players, which, in theory, fosters fan support in each individual city.
The Salary Cap is calculated by multiplying projected Basketball-Related Income (or BRI) by 44.74%, less projected player benefits (like health and welfare benefits), and then dividing the result by 30 (the current number of NBA teams. If the NBA expands, to Seattle for example, that number isn't increased for the
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