Salary cap Rumors
After last season didn’t go the way he’d hoped, Deng could’ve hit the open market and surely would have commanded a lucrative multi-year contract, but instead exercised his $10.2 million option to stay in Miami. It was a big break for the Heat, who retained him at a reasonable price without compromising future salary cap space. From Deng’s vantage point, he believed in management’s overarching plan and Spoelstra’s determination to find the right way to use him. “I felt like we had a good team,” Deng said. “The guys were great teammates, the organization from top to bottom, the training staff, everybody — it’s really a positive vibe here. I wanted to give it time. I really believed that we were gonna win.”
According to an NBA memo, the league projects teams finished the season with a payroll shortfall of $93 million. By the rules of the Collective Bargaining Agreement (CBA), teams are obligated to collectively pay players in the range of 49-51 percent of the NBA’s basketball related income (BRI). Throughout the season, 10 percent of player salaries are held back in escrow, in case the players are overpaid based on their designated ratio of BRI. Because the league didn’t reach their mark, the players will get their withheld money back from escrow – plus the estimated $93 million.
The projected salary cap and luxury tax amounts for the 2016-17 NBA season will be $92 million and $111 million, according to a league memo sent to team executives, and those figures were relayed to USA TODAY Sports by multiple people. They requested anonymity because they were not authorized to share those figures until the league officially announces later this year the salary cap and luxury tax for next season.
On how much the expected huge boost in the salary cap will help: Tim Connelly: It’s a blessing and a curse, because while it goes up so much more teams have a lot of money to spend. If we had the same amount a couple of years ago, we’d be one of one. This summer you’ll see a free agent market frenzy that we’ve never seen before. We’re dealing with new salary cap realities. So, the best laid plans go out the window. So, it will be fascinating. We’re one of numerous teams that have money to spend. Hopefully, what’s unique to our situation is we have a fairly full roster as-is. So we’ll be very specific on where we’ll be aggressive, and we won’t spend just to spend.