Report: NBA Salary Cap Will Be Lowered Due To Coronavirus Pandemic

SALT LAKE CITY, Utah – The NBA salary cap will reportedly be lowered prior to the start of the 2020-21 season due to the coronavirus pandemic.

On Saturday, May 9, Marc Berman of the New York Post reported that the league’s cap will be decreased from its current mark of $109.1 million before the start of next season.

“There is so much uncertainty with the coronavirus pandemic, but one thing is for sure: the salary cap will be lowered, according to league sources,” wrote Berman. “On the surface, that makes it advantageous to build around younger players on cheaper contracts.”

Joined the great @ESPNSteveLevy on @SportsCenter to go inside Adam Silver's call with the NBPA. pic.twitter.com/GXDwX0Y2Ze

— Adrian Wojnarowski (@wojespn) May 9, 2020

In January, ESPN reported that the league was preparing for a $115 million salary cap and $139 million luxury tax next season.

Berman highlighted that NBA teams could look to move players on large contracts due to the impact the luxury tax could play with a lowered cap.

“According to sources, with the pandemic creating an economic crisis for the NBA, teams might be eager to unload their giant contracts. Because the cap won’t be as high, the luxury tax looms larger,” continued Berman.

A lowered salary cap could potentially impact small market teams in addition to organizations that currently have player’s on payroll with expensive contracts.

In March, the league’s commissioner Adam Silver said the NBA was tracking the financial impact of the pandemic.

“It’s too soon to tell what the economic impact will be,” Silver said. “We’ve been analyzing multiple scenarios on a daily if not hourly basis and we’ll continue to review the financial implications. Obviously, it’s not a pretty picture but everyone, regardless of what industry they work in, is in the same boat.”

On Friday, March 8, Silver reportedly had a call with the membership of the NBA Players Association to provide an update on the league’s current status amid the pandemic.

ESPN’s Adrian Wojnarowski reported that Silver told players “This is going to be hard — and hard for a long time. We need to work together. Hard choices are coming. No one will agree on everything. There are some difficult days of collective bargaining coming with grim financial realities.”

Broader Adam Silver message on call to players: This is going to be hard — and hard for a long time. We need to work together. Hard choices are coming. No one will agree on everything. There are some difficult days of collective bargaining coming with grim financial realities.

— Adrian Wojnarowski (@wojespn) May 9, 2020

The salary cap has only dropped twice (2002 and 2009) since its creation prior to the 1984-85 NBA season, according to RealGM.

Wojnarowski also reported that the league is looking at the possibility of moving the start of the 2020-21 season from October to December to allow the current NBA season to play out during the summer.

The NBA halted play of the 2019-20 season on March 11 after Utah Jazz center Rudy Gobert tested positive for COVID-19.