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SBD/Issue 201/Leagues & Governing Bodies
NBA Warns Salary Cap Could See Significant Drop For '10-11 Season
Published July 8, 2009
POTENTIAL IMPACT ON FREE AGENCY: ESPN's Chris Broussard said the new salary cap and luxury tax could have "huge repercussions, and the summer of 2010 may not have nearly as much movement as we all have thought." Broussard: "For the past two years, all we've heard about is the summer of 2010, not only different players moving around but teams actually setting their agendas for that summer to sign one superstar free agent or maybe even two. But when teams did that, they were thinking the salary cap would be around $62-63(M). Now you're talking about it being between $50-53(M). ... That's a top-flight player that teams will now not be able to add." He notes the news is "good news" for teams like the Heat and Raptors, who have impending free agents in Dwyane Wade and Chris Bosh, respectively. Broussard: "Maybe the chances Chris Bosh staying (in Toronto) improve because Cleveland felt like they might have enough cap room to sign a Chris Bosh. Now that's unlikely" ("SportsCenter," ESPN, 7/8).
RARE DROP FOR SALARY CAP: In N.Y., Howard Beck notes the salary cap will decrease next season "for only the second time in its 26-year history -- a reflection of the economic recession." The last drop was between the '01-02 and '02-03 seasons, when it fell from $42.5M to $40.27M. The cap then increased for six consecutive seasons, reaching an all-time high last year (N.Y. TIMES, 7/8).