Quote:
Originally Posted by Samonadreau
Whatch these numbers get floated, teams completely blow their wad on mortgaging the future and throwing money around and then it not go up to nearly those numbers in 2027/28.
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Leaguewide revenue would need to drop considerably for these numbers to not hold.
Using the formula that's currently in place, next year's cap should be over $111 million. The only reason it isn't is because they agreed to limit year-over-year growth to 5%.
Since the post-COVID extension of the CBA, the formula for calculating the cap is:
- Start with the final HRR for the season two years prior (i.e., for 2025-26, use HRR from 2023-24).
- Divide that in half to get the players' share.
- Divide that by the total number of teams in the league to get the per team average share.
- This is the "midpoint" of the salary range. The cap is set to 115% of the midpoint and the floor is 85% of the midpoint.
There are few small other variables that come into play, but those are the broad strokes that work for understanding how it works.
Using that formula, the cap for 2025-26 should be:
- 2023-24 HRR = $6.2 billion (roughly)
- Players' share = $3.1 billion
- Per team share = $96.875 million
- Cap = $111.4 million
- Floor = $82.3 million
This year's revenue is projected to be $6.6 billion, which would lead to a cap of $118.6 million for 2026-27.
If they hadn't agreed to limit growth of the cap, we'd be looking at these projected numbers for three years from now next season.