The NBA salary cap is the limit to the total amount of money that National Basketball Association teams are allowed to pay their players. Like many professional sports leagues, the NBA has a salary cap to control costs, defined by the league's collective bargaining agreement (CBA). This limit is subject to a complex system of rules and exceptions and as such is considered a "soft" cap.
The actual amount of the salary cap varies from year to year, and is calculated as a percentage of the league's revenue from the previous season; for instance, the cap for the 2007–08 season was approximately US $55.6million per team, and in 2008–09 it was $58.68million. Under the CBA ratified in December 2011, the cap will continue to vary in future seasons based on league revenues; for the 2014–15 season, the salary cap was $63.065 million and the luxury tax limit was $76.8 million.
History
The NBA had a salary cap in the mid-1940s, but it was abolished after only one season. The league continued to operate without such a cap until 1984–85, when one was instituted in an attempt to level the playing field among all of the NBA's teams and ensure competitive balance for the League in the future. Before the cap was reinstated, teams could spend whatever amount of money they wanted on players, but in the first season under the new cap, they were each limited to $3.6million in total payroll.
In professional sports, free agent is a player who is eligible to sign with any club or franchise, i.e. not under contract to any specific team. The term is also used in reference to a player who is under contract at present, but who is allowed to solicit offers from other teams. In some circumstances, the free agent's options are limited by league rules.
Types
Terms
Unrestricted free agent
Unrestricted free agents are players without a team. They have either been released from their club, had the term of their contract expire without a renewal, or were not chosen in a league's draft of amateur players. These people, generally speaking, are free to entertain offers from all other teams and to decide with whom to sign a contract.
Restricted free agent
The specific rules of restricted free agency vary among the major professional sports, but in principle it means that a player is free to solicit contract offers from other teams; however, this player cannot sign with the competing club if the current club matches (or in some leagues come within 10%) the terms of the offered contract. For a restricted free agent, some leagues require the competing team to offer up to the original team a draft pick(s) when an offer is not matched, as compensation for losing the player.
In business, a free agent refers to someone who works independently for oneself, rather than for a single employer. These include self-employed workers, freelancers, independent contractors and temporary workers, who altogether represent about 44 percent of the U.S. labor force. The term free agent is believed to have been coined by Daniel H. Pink, author of a 1997 cover story in Fast Company titled “Free Agent Nation.” In 2001 Pink published a book with the same name. The combination of several workplace trends – including shortened job cycles, the increase of project work, the acceptance of a new lifestyle and the emergence of the Internet and other technology – points to free agent workers becoming more of an employment norm in the coming years. In a 2011 survey sponsored by Kelly Services, a global workforce solutions company, free agency is on the rise across all generations, with mature workers making up two-thirds of the free agent population. The survey also revealed that 73% of free agents voluntarily choose this workstyle because they seek the freedom, flexibility and entrepreneurial benefits associated with an independent workstyle.
5 More Valuable NBA Players That Are Somehow STILL Available Free Agents...
In this video we discuss five more players in particular who are somehow still unsigned NBA Free Agents that can definitely impact the game at a high level. Markelle Fultz, Dennis Smith Jr. and more discussed
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published: 06 Aug 2024
A Dummy's Guide to NBA Free Agency
#nba #nbaoffseason #nbatrades
First up, we have unrestricted free agents. These players have reached the end of their contracts and are free to sign with any team they choose. No strings attached. However, there are two subcategories within unrestricted free agency: those with Bird rights and those without. Bird rights allow a player's current team to exceed the salary cap in order to re-sign them. If a player with Bird rights decides to join another team, that team must have enough cap space to accommodate their contract.
To illustrate this, let's consider the case of Kyrie Irving, who is currently an unrestricted free agent. The Dallas Mavericks hold his Bird rights, meaning they can re-sign him while going over the salary cap. But let's say Kyrie prefers to play for the Los Angeles C...
published: 19 Jun 2023
5 Valuable NBA Players That Are Somehow STILL Available Free Agents...
In this video we discuss six players in particular who are somehow still unsigned NBA Free Agents that can definitely impact the game at a high level. Gary Trent Jr., Tyus Jones and more discussed
BUSINESS - [email protected]
Degeneracy Picks - https://www.youtube.com/channel/UCOGG7EgfTXJiRz5QnO59wPg
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Welcome to the Hoops Reference YouTube Channel! Subscribe for all things NBA content! Multiple new video every week. Leave a like if you enjoyed what you saw! Thanks for watching!
#nba #basketball
published: 12 Jul 2024
The Winners And Losers Of 2024 NBA Free Agency
2024 NBA free agency was certainly interesting... so lets talk about The Winners And Losers Of 2024 NBA Free Agency featuring Klay Thompson, Paul George, KCP, and more!
#nba #nbafreeagency #2024nba
published: 04 Jul 2024
3 BEST And WORST Signings From Day 1 Of NBA Free Agency...
In this video we identify and discuss the three best and three worst signings from the first day of NBA Free Agency 2024! James Harden, Klay Thompson and more discussed
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published: 02 Jul 2024
Chris Paul Becomes Free Agent & Looks For A New Team 😂 #nbanews #nba
published: 30 Jun 2024
NBA Fans During Free Agency 2019
How Fans Reacted to NBA Free Agency 2019
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NBA Fans During Free Agency 2019:
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published: 06 Jul 2019
2024 NBA FREE AGENCY | LATEST NEWS AND REACTION ⏰
Who switches teams? Any blockbuster trades? Reacting to the latest rumors and news before and after free agency opens at 6pm ET.
published: 01 Jul 2024
2024-2025 NBA Free Agency Beginning - Who had the BEST start?! - Get A Bucket Show
TUNE IN! Today on the Get A Bucket Show, Chris and Tré discuss their takes on the start of the 2024-2025 NBA Free Agency period! With the initial period being this active, it's only fair that we talk about a few NBA signings!!!
Did the Mavs REALLY make a contending signing with Klay Thompson? Should Paul George ease the city of Philadelphia's mind? Have teams like the Pistons and Pacers made under the radar signings? Or will teams like OKC and the Spurs surprise teams next season?! How about the Celtics and Cavs resigning their stars, who has more PRESSURE?
Tune in to listen to your favorite show's favorite show's bold prediction and entertaining commentary. You don't want to miss it!!!
published: 10 Aug 2024
I Ranked EVERY NBA Free Agent... [2024]
I ranked EVERY 2024 NBA free agent from 94 all the way to 1... including Bol Bol, LeBron James, Paul George, and more!
#nba #nbaranked #nbafreeagent
In this video we discuss five more players in particular who are somehow still unsigned NBA Free Agents that can definitely impact the game at a high level. Mar...
In this video we discuss five more players in particular who are somehow still unsigned NBA Free Agents that can definitely impact the game at a high level. Markelle Fultz, Dennis Smith Jr. and more discussed
BUSINESS - [email protected]
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Welcome to the Hoops Reference YouTube Channel! Subscribe for all things NBA content! Multiple new video every week. Leave a like if you enjoyed what you saw! Thanks for watching!
#nba #basketball
In this video we discuss five more players in particular who are somehow still unsigned NBA Free Agents that can definitely impact the game at a high level. Markelle Fultz, Dennis Smith Jr. and more discussed
BUSINESS - [email protected]
Degeneracy Picks - https://www.youtube.com/channel/UCOGG7EgfTXJiRz5QnO59wPg
SUPPORT ON PATREON - https://www.patreon.com/hoopsreference
SEATGEEK CODE: hoopsreference ($20 off your first purchase at seatgeek.com)
FOLLOW ON TWITTER - https://twitter.com/HoopsReference
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Welcome to the Hoops Reference YouTube Channel! Subscribe for all things NBA content! Multiple new video every week. Leave a like if you enjoyed what you saw! Thanks for watching!
#nba #basketball
#nba #nbaoffseason #nbatrades
First up, we have unrestricted free agents. These players have reached the end of their contracts and are free to sign with any ...
#nba #nbaoffseason #nbatrades
First up, we have unrestricted free agents. These players have reached the end of their contracts and are free to sign with any team they choose. No strings attached. However, there are two subcategories within unrestricted free agency: those with Bird rights and those without. Bird rights allow a player's current team to exceed the salary cap in order to re-sign them. If a player with Bird rights decides to join another team, that team must have enough cap space to accommodate their contract.
To illustrate this, let's consider the case of Kyrie Irving, who is currently an unrestricted free agent. The Dallas Mavericks hold his Bird rights, meaning they can re-sign him while going over the salary cap. But let's say Kyrie prefers to play for the Los Angeles Clippers, who are over the salary cap and cannot sign him as a free agent. Here's where a loophole called a sign and trade comes into play. The Mavericks would sign Kyrie to a new deal and immediately trade him to the Clippers, utilizing their Bird rights in the process. In return, the Clippers would compensate the Mavericks with players and possibly draft picks. This mutually beneficial arrangement allows both teams to circumvent the salary cap and acquire what they need.
Moving on, let's discuss restricted free agents. These players have just completed their rookie scale contracts and are now free agents, but with some limitations. The team that drafted them can make an offer to retain them, and if another team makes an offer, the original team has the option to match it. This ensures that teams have a fair chance to keep talented players they have nurtured while also ensuring the player receives market value.
For instance, let's take the example of Rui Hachimura, who recently finished his rookie contract with the Lakers. Any team can offer Rui a contract, but the Lakers have the right to match it and retain him. The other team's offer effectively sets the price for the Lakers, and they decide whether to keep Rui or let him go.
The third type of free agent is a player with a player option. This means they have the choice to either play one more year on their current contract or decline it and sign a new deal with their current team or another team. James Harden, for example, currently has a player option with the 76ers. He can either opt-in for another year with the team or explore other options in free agency. The decision will likely depend on the highest bidder and the best opportunity for him.
Lastly, we have team options. Unfortunately for players, this type of option gives their team the power to decide whether to exercise the final year of their contract or not. It can be a double-edged sword. If a player has been performing exceptionally well, their team may decline the option and let them become a free agent. On the other hand, if the player exceeds expectations, the team may choose to exercise the option and retain them for another year.
In conclusion, NBA free agency is a complex and dynamic process. Understanding the different types of free agents and the implications of their contract situations provides crucial insights into the player movement and team strategies. So the next time you hear about free agency rumors or deals, you'll be equipped with the knowledge to make sense of it all.
Thank you for watching today's video, and if you want more in-depth information, be sure to check out our previous video on this subject. Don't forget to like, comment, and subscribe for more exciting NBA content. See you in the next one!
#nba #nbaoffseason #nbatrades
First up, we have unrestricted free agents. These players have reached the end of their contracts and are free to sign with any team they choose. No strings attached. However, there are two subcategories within unrestricted free agency: those with Bird rights and those without. Bird rights allow a player's current team to exceed the salary cap in order to re-sign them. If a player with Bird rights decides to join another team, that team must have enough cap space to accommodate their contract.
To illustrate this, let's consider the case of Kyrie Irving, who is currently an unrestricted free agent. The Dallas Mavericks hold his Bird rights, meaning they can re-sign him while going over the salary cap. But let's say Kyrie prefers to play for the Los Angeles Clippers, who are over the salary cap and cannot sign him as a free agent. Here's where a loophole called a sign and trade comes into play. The Mavericks would sign Kyrie to a new deal and immediately trade him to the Clippers, utilizing their Bird rights in the process. In return, the Clippers would compensate the Mavericks with players and possibly draft picks. This mutually beneficial arrangement allows both teams to circumvent the salary cap and acquire what they need.
Moving on, let's discuss restricted free agents. These players have just completed their rookie scale contracts and are now free agents, but with some limitations. The team that drafted them can make an offer to retain them, and if another team makes an offer, the original team has the option to match it. This ensures that teams have a fair chance to keep talented players they have nurtured while also ensuring the player receives market value.
For instance, let's take the example of Rui Hachimura, who recently finished his rookie contract with the Lakers. Any team can offer Rui a contract, but the Lakers have the right to match it and retain him. The other team's offer effectively sets the price for the Lakers, and they decide whether to keep Rui or let him go.
The third type of free agent is a player with a player option. This means they have the choice to either play one more year on their current contract or decline it and sign a new deal with their current team or another team. James Harden, for example, currently has a player option with the 76ers. He can either opt-in for another year with the team or explore other options in free agency. The decision will likely depend on the highest bidder and the best opportunity for him.
Lastly, we have team options. Unfortunately for players, this type of option gives their team the power to decide whether to exercise the final year of their contract or not. It can be a double-edged sword. If a player has been performing exceptionally well, their team may decline the option and let them become a free agent. On the other hand, if the player exceeds expectations, the team may choose to exercise the option and retain them for another year.
In conclusion, NBA free agency is a complex and dynamic process. Understanding the different types of free agents and the implications of their contract situations provides crucial insights into the player movement and team strategies. So the next time you hear about free agency rumors or deals, you'll be equipped with the knowledge to make sense of it all.
Thank you for watching today's video, and if you want more in-depth information, be sure to check out our previous video on this subject. Don't forget to like, comment, and subscribe for more exciting NBA content. See you in the next one!
In this video we discuss six players in particular who are somehow still unsigned NBA Free Agents that can definitely impact the game at a high level. Gary Tren...
In this video we discuss six players in particular who are somehow still unsigned NBA Free Agents that can definitely impact the game at a high level. Gary Trent Jr., Tyus Jones and more discussed
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Welcome to the Hoops Reference YouTube Channel! Subscribe for all things NBA content! Multiple new video every week. Leave a like if you enjoyed what you saw! Thanks for watching!
#nba #basketball
In this video we discuss six players in particular who are somehow still unsigned NBA Free Agents that can definitely impact the game at a high level. Gary Trent Jr., Tyus Jones and more discussed
BUSINESS - [email protected]
Degeneracy Picks - https://www.youtube.com/channel/UCOGG7EgfTXJiRz5QnO59wPg
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Welcome to the Hoops Reference YouTube Channel! Subscribe for all things NBA content! Multiple new video every week. Leave a like if you enjoyed what you saw! Thanks for watching!
#nba #basketball
2024 NBA free agency was certainly interesting... so lets talk about The Winners And Losers Of 2024 NBA Free Agency featuring Klay Thompson, Paul George, KCP, a...
2024 NBA free agency was certainly interesting... so lets talk about The Winners And Losers Of 2024 NBA Free Agency featuring Klay Thompson, Paul George, KCP, and more!
#nba #nbafreeagency #2024nba
2024 NBA free agency was certainly interesting... so lets talk about The Winners And Losers Of 2024 NBA Free Agency featuring Klay Thompson, Paul George, KCP, and more!
#nba #nbafreeagency #2024nba
In this video we identify and discuss the three best and three worst signings from the first day of NBA Free Agency 2024! James Harden, Klay Thompson and more d...
In this video we identify and discuss the three best and three worst signings from the first day of NBA Free Agency 2024! James Harden, Klay Thompson and more discussed
BUSINESS - [email protected]
Degeneracy Picks - https://www.youtube.com/channel/UCOGG7EgfTXJiRz5QnO59wPg
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Welcome to the Hoops Reference YouTube Channel! Subscribe for all things NBA content! Multiple new video every week. Leave a like if you enjoyed what you saw! Thanks for watching!
#nba #basketball
In this video we identify and discuss the three best and three worst signings from the first day of NBA Free Agency 2024! James Harden, Klay Thompson and more discussed
BUSINESS - [email protected]
Degeneracy Picks - https://www.youtube.com/channel/UCOGG7EgfTXJiRz5QnO59wPg
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Welcome to the Hoops Reference YouTube Channel! Subscribe for all things NBA content! Multiple new video every week. Leave a like if you enjoyed what you saw! Thanks for watching!
#nba #basketball
TUNE IN! Today on the Get A Bucket Show, Chris and Tré discuss their takes on the start of the 2024-2025 NBA Free Agency period! With the initial period being t...
TUNE IN! Today on the Get A Bucket Show, Chris and Tré discuss their takes on the start of the 2024-2025 NBA Free Agency period! With the initial period being this active, it's only fair that we talk about a few NBA signings!!!
Did the Mavs REALLY make a contending signing with Klay Thompson? Should Paul George ease the city of Philadelphia's mind? Have teams like the Pistons and Pacers made under the radar signings? Or will teams like OKC and the Spurs surprise teams next season?! How about the Celtics and Cavs resigning their stars, who has more PRESSURE?
Tune in to listen to your favorite show's favorite show's bold prediction and entertaining commentary. You don't want to miss it!!!
TUNE IN! Today on the Get A Bucket Show, Chris and Tré discuss their takes on the start of the 2024-2025 NBA Free Agency period! With the initial period being this active, it's only fair that we talk about a few NBA signings!!!
Did the Mavs REALLY make a contending signing with Klay Thompson? Should Paul George ease the city of Philadelphia's mind? Have teams like the Pistons and Pacers made under the radar signings? Or will teams like OKC and the Spurs surprise teams next season?! How about the Celtics and Cavs resigning their stars, who has more PRESSURE?
Tune in to listen to your favorite show's favorite show's bold prediction and entertaining commentary. You don't want to miss it!!!
In this video we discuss five more players in particular who are somehow still unsigned NBA Free Agents that can definitely impact the game at a high level. Markelle Fultz, Dennis Smith Jr. and more discussed
BUSINESS - [email protected]
Degeneracy Picks - https://www.youtube.com/channel/UCOGG7EgfTXJiRz5QnO59wPg
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Welcome to the Hoops Reference YouTube Channel! Subscribe for all things NBA content! Multiple new video every week. Leave a like if you enjoyed what you saw! Thanks for watching!
#nba #basketball
#nba #nbaoffseason #nbatrades
First up, we have unrestricted free agents. These players have reached the end of their contracts and are free to sign with any team they choose. No strings attached. However, there are two subcategories within unrestricted free agency: those with Bird rights and those without. Bird rights allow a player's current team to exceed the salary cap in order to re-sign them. If a player with Bird rights decides to join another team, that team must have enough cap space to accommodate their contract.
To illustrate this, let's consider the case of Kyrie Irving, who is currently an unrestricted free agent. The Dallas Mavericks hold his Bird rights, meaning they can re-sign him while going over the salary cap. But let's say Kyrie prefers to play for the Los Angeles Clippers, who are over the salary cap and cannot sign him as a free agent. Here's where a loophole called a sign and trade comes into play. The Mavericks would sign Kyrie to a new deal and immediately trade him to the Clippers, utilizing their Bird rights in the process. In return, the Clippers would compensate the Mavericks with players and possibly draft picks. This mutually beneficial arrangement allows both teams to circumvent the salary cap and acquire what they need.
Moving on, let's discuss restricted free agents. These players have just completed their rookie scale contracts and are now free agents, but with some limitations. The team that drafted them can make an offer to retain them, and if another team makes an offer, the original team has the option to match it. This ensures that teams have a fair chance to keep talented players they have nurtured while also ensuring the player receives market value.
For instance, let's take the example of Rui Hachimura, who recently finished his rookie contract with the Lakers. Any team can offer Rui a contract, but the Lakers have the right to match it and retain him. The other team's offer effectively sets the price for the Lakers, and they decide whether to keep Rui or let him go.
The third type of free agent is a player with a player option. This means they have the choice to either play one more year on their current contract or decline it and sign a new deal with their current team or another team. James Harden, for example, currently has a player option with the 76ers. He can either opt-in for another year with the team or explore other options in free agency. The decision will likely depend on the highest bidder and the best opportunity for him.
Lastly, we have team options. Unfortunately for players, this type of option gives their team the power to decide whether to exercise the final year of their contract or not. It can be a double-edged sword. If a player has been performing exceptionally well, their team may decline the option and let them become a free agent. On the other hand, if the player exceeds expectations, the team may choose to exercise the option and retain them for another year.
In conclusion, NBA free agency is a complex and dynamic process. Understanding the different types of free agents and the implications of their contract situations provides crucial insights into the player movement and team strategies. So the next time you hear about free agency rumors or deals, you'll be equipped with the knowledge to make sense of it all.
Thank you for watching today's video, and if you want more in-depth information, be sure to check out our previous video on this subject. Don't forget to like, comment, and subscribe for more exciting NBA content. See you in the next one!
In this video we discuss six players in particular who are somehow still unsigned NBA Free Agents that can definitely impact the game at a high level. Gary Trent Jr., Tyus Jones and more discussed
BUSINESS - [email protected]
Degeneracy Picks - https://www.youtube.com/channel/UCOGG7EgfTXJiRz5QnO59wPg
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FOLLOW ON TWITTER - https://twitter.com/HoopsReference
FOLLOW ON INSTAGRAM - https://www.instagram.com/jdhoopsrefererence
Welcome to the Hoops Reference YouTube Channel! Subscribe for all things NBA content! Multiple new video every week. Leave a like if you enjoyed what you saw! Thanks for watching!
#nba #basketball
2024 NBA free agency was certainly interesting... so lets talk about The Winners And Losers Of 2024 NBA Free Agency featuring Klay Thompson, Paul George, KCP, and more!
#nba #nbafreeagency #2024nba
In this video we identify and discuss the three best and three worst signings from the first day of NBA Free Agency 2024! James Harden, Klay Thompson and more discussed
BUSINESS - [email protected]
Degeneracy Picks - https://www.youtube.com/channel/UCOGG7EgfTXJiRz5QnO59wPg
SUPPORT ON PATREON - https://www.patreon.com/hoopsreference
SEATGEEK CODE: hoopsreference ($20 off your first purchase at seatgeek.com)
FOLLOW ON TWITTER - https://twitter.com/HoopsReference
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Welcome to the Hoops Reference YouTube Channel! Subscribe for all things NBA content! Multiple new video every week. Leave a like if you enjoyed what you saw! Thanks for watching!
#nba #basketball
TUNE IN! Today on the Get A Bucket Show, Chris and Tré discuss their takes on the start of the 2024-2025 NBA Free Agency period! With the initial period being this active, it's only fair that we talk about a few NBA signings!!!
Did the Mavs REALLY make a contending signing with Klay Thompson? Should Paul George ease the city of Philadelphia's mind? Have teams like the Pistons and Pacers made under the radar signings? Or will teams like OKC and the Spurs surprise teams next season?! How about the Celtics and Cavs resigning their stars, who has more PRESSURE?
Tune in to listen to your favorite show's favorite show's bold prediction and entertaining commentary. You don't want to miss it!!!
The NBA salary cap is the limit to the total amount of money that National Basketball Association teams are allowed to pay their players. Like many professional sports leagues, the NBA has a salary cap to control costs, defined by the league's collective bargaining agreement (CBA). This limit is subject to a complex system of rules and exceptions and as such is considered a "soft" cap.
The actual amount of the salary cap varies from year to year, and is calculated as a percentage of the league's revenue from the previous season; for instance, the cap for the 2007–08 season was approximately US $55.6million per team, and in 2008–09 it was $58.68million. Under the CBA ratified in December 2011, the cap will continue to vary in future seasons based on league revenues; for the 2014–15 season, the salary cap was $63.065 million and the luxury tax limit was $76.8 million.
History
The NBA had a salary cap in the mid-1940s, but it was abolished after only one season. The league continued to operate without such a cap until 1984–85, when one was instituted in an attempt to level the playing field among all of the NBA's teams and ensure competitive balance for the League in the future. Before the cap was reinstated, teams could spend whatever amount of money they wanted on players, but in the first season under the new cap, they were each limited to $3.6million in total payroll.