The NBA has informed teams that its projection for the 2026/27 salary cap has decreased from $166MM to $165MM because of a reduction in local media revenue, sources tell Shams Charania of ESPN (Twitter link).
When the league set a $154,647,000 cap for 2025/26, it reportedly told teams it was projecting a 7% increase for ’26/27. That would work out to $165,472,000.
In September, the NBA reportedly increased that projection to $166MM. But now the cap projection is back down to $165MM, according to Charania.
It’s unclear if the $165MM figure Charania cited is exact or rounded down. Either way, it’s not a significant change to the projection, but it could be an important one for teams who project be over the first and/or second tax aprons next season, since those thresholds may come in a little lower than anticipated. It could also impact teams who operate under the cap.
Sports Business Journal reported a few weeks ago that the NBA let its teams know that there’s a chance it will introduce a streaming hub for local broadcasts as soon as next season. Many clubs’ local broadcasts have been thrown into disarray due to the fact that Main Street Sports Group, which has regional TV agreements with 13 NBA teams, is likely headed for insolvency.
Due to its financial woes, Main Street has missed payments to its teams on January 1, February 1, and March 1, per Sports Business Journal. The NBA originally didn’t plan on launching this sort of streaming hub until down the road, but it has become a higher priority in order to help teams make up for those lost rights-fee payments.
Although the league has informed its teams that it’s trying to get something together for the 2026/27 season, there’s no guarantee that will happen, so Main Street clubs have been advised to explore lining up a bridge deal for their local broadcasts. Those teams are exploring both linear and streaming options, according to Sports Business Journal.
Under the current Collective Bargaining Agreement, annual cap increases are capped at 10% to avoid another huge single-year jump like the 34.5% increase that occurred in 2016, which allowed the 73-win Warriors to sign Kevin Durant in free agency.
A 10% bump for ’26/27 would result in a $170,112,000 cap. However, it sounds highly unlikely that the cap will rise that high this summer based on today’s update.
But I was told that the NBA starting their own RSN was purely out of greed! How has this ended up impacting teams/players?!? If only someone could step in and do something!!!
Hahaha the NBA does things out of greed though. What is the whole idea behind expansion if not for greed and the owners pocketing $500million. I get your point and think there’s validity in it and I know I’m varying from it, but we can’t disregard the greed that’s in the NBA
Maybe it has to do with teams tanking, Sitting out their stars, Spreading all the games onto 30 different TV products and all in all having a bunch of wimps for players who spend more time trying to figure out how to stay OFF the court than actually training to stay ON it. But people say I’m old and don’t know anything. Maybe people don’t want to pay for a streaming service that only airs a couple of games they want to see. Maybe rather than do that they’ve found out there are better things to watch on TV. Maybe……………….