The NBA teams will see a major increase in the league’s salary cap for the 2027-2028 season.
According to Fred Katz of The Athletic, the league has informed all teams about the new salary cap projections for the 2027 season, which is expected to be at $176 million.
Meanwhile, the salary tax line is projected to be at $213 million.
• $176 million salary cap • $213 million luxury tax line
The new projection comes in $2 million higher than the league’s last one.
Salary Cap Update Goes Against an NBA Trend
This reverses a recent trend of adjustments and gives teams extra flexibility. The official numbers will not be finalized by the league until June 2027.
The projection is a $2 million increase from the previous estimates. According to multiple reports, this signals that league revenues are growing at a healthier 6.7 percent annual rate rather than lagging further behind.
For team front offices, the increase offers welcome breathing room against rigid roster-building constraints and luxury tax thresholds.
At the same time, it directly increases the maximum salary values and exception slots for players, elevating projected max extensions for superstars.
Basically, this gives teams more financial flexibility.
Currently, the NBA’s salary cap is set at $164.961 million for the 2026-2027 season, which means that teams can exceed the limit to retain their own players or use specific exceptions, provided they stay above a mandatory salary floor of $148.465 million.
Cross the luxury tax line at $200.428 million, and franchises pay incremental fines. Moving higher triggers the first apron at $209.015 million and the strict second apron at $221.686 million, which restrict trades, ban the use of mid-level exceptions, and freeze future draft assets.
Teams now rely on tools like Bird rights to re-sign veteran players or utilize the Mid-Level Exception to add players.
Draymond Green Questions NBA’s Salary Cap
Some NBA players are not fans of the NBA’s salary cap, including four-time champion Draymond Green, who questioned it during his podcast.
According to Green, the cap is restricting NBA player to make money on their own.
“Why is there a salary cap?” Green said. “Why are guys being prevented from making money from team sponsors or league sponsors, or whoever else?”
“Why is there a salary cap? Why are guys being prevented from making money from team sponsors or league sponsors, or whoever else?”
(h/t @ThePaintNBA )
Green sentiments stemmed from the Kawhi Leonard ordeal with the LA Clippers, where he was fined $700,000 for restitution on the salary cap circumvention scandal.
“We talk about how we’re in a league that is player-centric, that is player-focused, that is player-driven, that, you know, has the best benefit, best interests for the players. You know, and here’s a situation where a guy can make 20 to 30 extra million dollars and we’re like, oh yeah, you’re in trouble,” Green said.
Aside from salaries with teams, NBA players can earn outside income through off-court marketing, endorsements, business investments, and brand deals.
Brands pay players millions to wear shoes, drink beverages, or promote products. They also receive a cut of sales from jerseys, apparel, and signature shoes carrying their name or logo.
Players also get paid for sponsored social media posts, public appearances, and speaking engagements.
NBA Gets Good News About Salary Cap