With the NBA’s new massive nine-year, $24 billion TV deal being signed and official, the leagues salary cap is expected to increase with it. Higher profits for the league and the owners will come, so it is only fair the players see an increase as well.
The increases are absolutely massive. The current salary cap is approximately $63 million with the tax level at $76 million. The Knicks have $32 million on the books for next season. Here is how high teams could be able to spend in the coming seasons.
The cap increase will benefit every NBA team as they can spend more, but the Knicks may have an even bigger advantage with this monstrous cap though.
The Knicks are one of the wealthiest sports franchises in the entire world, valued at 1.4 billion (13th highest worldwide). James Dolan has shown that he is more than willing to spend whatever it takes to win. Smaller market teams such as the Milwaukee Bucks or Memphis Grizzlies have often looked to save money on player salaries, so they could be hesitant to give out massive contracts that are surely to come under the new influx of cash. This would favor the hefty spending Knicks when it comes to recruiting available players.
It also will give the Knicks the chance to do whatever they want this offseason. Justifying giving out massive offers to lure away guys such as Greg Monroe, Goran Dragic, Khris Middleton or DeMarre Carroll was difficult. Giving them such big contracts to them would cripple them cap-wise for years to come. With the new projected exponential growth on the cap, something like four-years for $65 million for Monroe will not be all that expensive for a player of his caliber two years down the road.
Carmelo Anthony’s albatross of a contract will also have less of a negative impact on the cap as well. Max deals could be as much as $32 million, while Anthony is currently earning the max for $24 million. His salary will stay the same, so it will not be very high in comparison to other stars around the league.
So with the increase in cap, the Knicks will be able to be more active in spending this summer in anticipation of the increase to come soon after. They also will be able to continue to spend for years to follow.