NBA To Set Salary Cap At $109M, Luxury Tax At $132M For 20-21 Season

The salary cap for the 20-21 season is expected to be $109 million with the luxury tax line at $132 million, multiple sources tell Shams Charania of The Athletic.

Michele Roberts revealed to The Athletic that the NBA and NBPA are close to agreement on the salary cap and tax.

If the league were to keep the salary cap as a percentage of basketball related income, it would likely be approximately $90 million. The NBA and NBPA are artificially smoothing the cap in order to protect teams from exorbitant luxury tax payments and also to help the 2020 free agency class sign deals with future earnings tied to a percentage of the cap more aligned to what the figure would have been if not for the COVID-19 pandemic.

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