REPORT: NBA Discussing Creating An ‘upper Spending Limit’

REPORT: NBA Discussing Creating An ‘upper Spending Limit’

With big market contenders significantly going over the luxury tax and offering gigantic payrolls, NBA owners are trying to create an “upper spending limit” that can bring in more revenue for the League, according to NBA insider Adrian Wojnarowski of ESPN.

The revenue is expected to come from the League becoming more competitive upon the rule going into full effect. This will give each team a hard cap that they can not exceed. Contenders like the Warriors, Clippers, and Nets, who have more than half a billion dollars due in luxury tax, will be directly impacted. Owners believe the spending gap between the smallest and largest markets in the League is unsustainable long-term. 

According to Woj, the National Basketball Players Association is expected to oppose the owner’s proposal of having an “upper spending limit.” 

The CBA currently in place expires after the 2024-25 season. The owners and the players association will make a final decision on Dec. 15, where they can decide to opt-out of CBA in December ’23.

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