Restudying salary caps
In the NBA, there are soft salary caps where teams may avail of exceptions to exceed limits but a luxury tax is imposed if so-called aprons are breached. The formulas of exceptions are complicated and the computation of a luxury tax is just as complex. A player may negotiate a contract with no individual cap but the restriction is the team’s salary limit of $136 million this season. Among the NBA’s 30 teams, only three are paying under the cap – Charlotte, Orlando and Indiana, meaning 27 franchises are exercising exceptions or paying the luxury tax to the league.