Report: NBA salary cap expected to increase to $63.2 million, luxury tax to $77 million

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The NBA won’t officially compute next season’s salary cap and luxury-tax line until July, but estimates are always helpful in projecting what options teams will have this offseason.

Marc Stein of ESPN:

Sources told ESPN.com that all 30 teams were informed this week via league memorandum that an increase in the cap from this season’s $58.6 million to $63.2 million in 2014-15 — thanks to increased revenues — is now expected. A corresponding rise in the luxury-tax threshold from $71.7 million to $77 million is also projected, sources said.

This will affect every NBA team, but any with cap space this offseason will be happy with the large rise, as will any facing a luxury-tax bill. Here are few examples of how this projection affect teams:

  • If the Bulls amnesty Carlos Boozer, they’d have $13,193,727 in cap room. If they further traded Taj Gibson and Mike Dunleavy with no salary returning, the Bulls would have enough cap room to sign Carmelo Anthony outright to his full max contract. That would leave them Derrick Rose, Joakim Noah, Tony Snell and Jimmy Butler under contract while keeping the No. 19 pick.
  • The Rockets could still strip their roster to only Dwight Howard and James Harden and not have room to offer Carmelo Anthony his full max. Though they’d be just $496,877 shy of his potential first-year salary in cap room, that would mean losing valuable players like Chandler Parsons, Terrence Jones and Patrick Beverley. As with previous projections, Houston would almost certainly need a sign-and-trade to land Melo.
  • The Heat might avoid the luxury tax now. Assuming they keep all five players with guaranteed contracts next season – LeBron James, Dwyane Wade, Chris Bosh,Udonis Haslem (player option),Chris Andersen (player option) andNorris Cole – sign their No. 26 pick to a standard 120 percent contract, sign their second-round pick to a minimum contract and fill their roster with five minimum-salary players on one-year contracts, they’d be below the tax line with $1,316,033 in wiggle room. That would probably mean losing Mario Chalmers, though. But with LeBron, Wade and Bosh each holding early termination options, a lot can change.