The NBA’s salary cap and luxury-tax line are determined by the league’s Basketball Related Income. The more money the league makes, the higher the salary cap and luxury-tax line.
Early estimates indicate the NBA didn’t generate as much revenue as expected this season.
Hearing early projections given to GMs and owners in May have NBA salary cap rising to just $58.5 mil next season. This season: $58.044 mil
Expectation was $60M.
Most of all, this hurts any player who will be a free agent this summer, because teams will have less money to spend on those players.
A smaller-than-expected-bump also hurts teams with cap room this summer. Although every team must deal with the same restrictions, several teams are positioned only to use their cap exceptions are are relatively unaffected. That means the teams planning to use cap room won’t have quite as much room to maneuver.