The NBA season was concluded in Orlando, but that doesn’t mean the league will not experience loss of revenue due to the season hiatus and the global pandemic.
According to Connor Letourneau of the San Francisco Chronicle, the salary cap is expected to be reduced somewhere between $3 and $12 million next season.
“League sources have put the decline in the cap at anywhere between $3 million and $12 million. If the cap dropped $10 million, the Warriors could have to pay $15 million more in taxes than on an entire roster expected to be in the $180 million range.“
With that in mind, the teams will have to change their planning accordingly for the upcoming offseason, especially with the expectations of not having fans in the arenas for the new season, which is projected to start somewhere between December and January.
As a result, many teams will have to face burdensome bills, if the projected salary cap take a big dip. In that regard, many analysts expect to see a few teams make some cash-saving trades or other moves to get them below the tax line.