The NBA is caught up in the decline of cable television regional sports networks and it’s hitting the league’s bottom line.
The NBA sent a memo to teams this week stating that next year’s salary cap would be $165 million, which is $1 million lower than previously projected, reports Shams Charania of ESPN. Last September, the league told teams to expect a $166 million cap, but that number is now slightly lower due to a reduction in local media revenue.
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That $165 million salary cap also means:
• The salary floor: $149 million
• The luxury tax line: $201 million
• The first tax apron: $209 million
• The second tax apron: $222 million
• The non-taxpayer midlevel exception: $15.1 million
• The taxpayer midlevel exception: $6.1 million
Due to Main Street Sports’ financial struggles — which runs the FanDuel Sports Network, the local broadcast partner of 13 NBA teams — the NBA is considering introducing a streaming hub for local broadcasts as soon as next season, the Sports Business Journal reported recently.
The salary cap for the current season (2025-26) is $154.7 million. While the salary cap is still increasing next season, it’s not going up the full 10% allowed under the CBA, despite it being the second year of the league’s new national television deal.
