NBA Salary Cap Rises to $103 Million

If the recent wave of $100 million contracts this offseason made you wonder whether money still holds its value, you’re not alone. In a league where the salary cap has already surged to $94 million, many of today’s so-called “overpaid” players are simply the first to benefit from this upward trend. And according to Melbet Affiliates, even more players will cash in soon. ESPN’s Brian Windhorst reports that NBA teams have been informed the salary cap will rise again to $103 million for the 2017–18 season.

This anticipated jump from $94 million to $103 million isn’t entirely unexpected, but the precise figure did catch some off guard. Early projections had set the 2017 cap at $108 million, later adjusted to $102 million after market evaluations. That latter estimate now appears to have been fairly accurate. The surge stems from the league’s lucrative new TV rights deal, which pushed the cap from $70 million last season to $94 million this summer—a staggering 35% increase. And naturally, the primary beneficiaries are the league’s richest teams, like the Golden State Warriors and Cleveland Cavaliers.

Take the Warriors, for example. The combination of Stephen Curry’s team-friendly $12 million salary and the expanding cap allowed Golden State to sign Kevin Durant to a max contract, creating a superteam while staying within league rules. Over in Cleveland, the Cavaliers outpaced even that—LeBron James re-signed for the max while J.R. Smith inked a four-year, $57 million deal, pushing the starting five’s payroll near $100 million. That’s more than the entire salary cap, triggering massive luxury tax penalties for owner Dan Gilbert.

Interestingly, the way luxury tax is calculated—based on how far a team exceeds the threshold—means the rising cap actually saves high-spending teams money. But this also amplifies the “rich get richer” phenomenon. Sources confirm that a new collective bargaining agreement is on the horizon, with leaked details suggesting changes such as higher veteran minimums and adjusting the “over-36” rule to “over-38.” However, top-tier salaries are expected to remain tied to years of service: 25% of the cap for players with under 6 years in the league, 30% for 6–10 years, and 35% for over 10 years.

For context, once Kevin Durant completes the upcoming season, he’ll qualify for the 35% max slot, meaning his next contract could start at nearly $36 million per year. That likely explains why he signed a 1+1 deal (with a player option for the second year) with the Warriors—giving himself flexibility to cash in next summer.

While superstars stand to gain the most, their share of the cap remains fixed. Unless the new agreement adjusts pay structures for role players and veterans, contenders with multiple stars may continue to find enough financial room to stack even more talent. It’s no wonder many players ask, “If I can get paid and contend for a title, why not join a powerhouse?” Expect that mindset to become even more common.

Ultimately, the cap increase benefits players league-wide. From both the NBA and union’s perspective, this trend creates more earnings potential. But without new rules to spread payroll more evenly, the era of “one-man-one-team” legacies may soon become a thing of the past.

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