How to Know NBA Salary Cap Rules

If you want to better understand the logic behind what your favorite NBA team is doing with regards to player movement, you need to know the NBA salary cap rules. Learning the NBA salary cap rules is easy to do by following a few steps. You can find all the information you need online.

Instructions

Difficulty: Moderate

1. Know that the NBA sets its salary cap number annually. That cap number is the dollar amount that is the ceiling for all players' contracts on the team. For example, if the salary cap number is $50 million, each NBA team can pay its players up to a sum of $50 million annually. However, the salary cap number isn't a hard cap, as there are exceptions to allow teams to go above that number in committed salaries.
2. Understand that NBA rookies are paid on a sliding scale as described in the CBA. Depending on where a player is selected in the draft, he will be paid a predetermined salary.
3. Learn about how NBA teams must match salaries when making a trade. For a trade to be valid, the salaries of the players that are being traded need to be reasonably close for the trade to be allowed by the NBA. Teams can also trade future draft picks and cash up to $3 million as part of a trade.
4. Read the frequently asked questions that can be found at the CBAFAQ website. At the CBAFAQ website, there is a list of frequently asked questions that explains all you need to know about the salary cap rules of the NBA. It covers all aspects of the NBA's collective bargaining agreement and is a fantastic reference tool.