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, based on the updates we’ve gotten to this point, there’s no indication that sort of increase is in the cards for next season.
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
If that same greed exists in every other circle in this country, when does it stop becoming greed and start becoming standard? Even if you’re oppose to the NBA making money, it’s not unique to the NBA or more rampant to the NBA.
Also I’d start using the Europe project as a better example of greed over expansion. Much easier to argue.
Oof I don’t think we should look at greed being the standard, but just my opinion. But yeah you’re right about that, just capitalism in a nutshell.
I think the Euro expansion falls under that umbrella as well. I really don’t think Vegas needs a team, that ties in with the greed too. They’re both arguable for sure.
Will be interesting to see how this plays out considering local broadcasts are losing steam. As long as my leaguepass stays the same! Hahaha
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……………….
That time of year again Mike. The pain will be put on pause soon enough.
It definitely matters for teams with veteran contracts that already project to be around either apron. Most of the league’s existing long term contracts were signed by the player and a team with his Bird Rights, and thus include an 8% annual increase. While the 8% is not compounded, its still the case that whenever the cap increase is less than 8%, overall spending power doesn’t increase. Usually means that good teams can’t bring back at least one significant piece. It’s really the last thing the league needs right now. It’s better teams getting thinner.