Sporticast 463: The NBA Salary Floor Is As Important As The Cap

On the latest Sporticast episode, hosts Scott Soshnick and Eben Novy-Williams discuss some of the biggest sports business stories of the week, including the NBA salary cap, which is jumping to $154.6 million next season.

That’s a 10% increase over this season ($140.6 million) and the maximum allowable increase according to the league’s collective bargaining agreement. The boost was expected now that the league is entering new 11-year, media and broadcast agreements worth $77 billion. Teams have been quick to execute deals under the new reality. Thunder guard Shai Gilgeous-Alexander, the MVP of both the regular season and finals, agreed this week to a four-year, $285 million “supermax” contract extension, making him the highest paid player in NBA history on a per-year basis.

The hosts talk about the economics of the salary cap increase. They also talk about the role that the salary floor plays in keeping player pay elevated across the league. Unlike in MLB, where there is no payroll minimum, NBA teams must spend to a floor of 90% of the salary cap or face financial penalty.

Next up— the NHL‘s Florida Panthers. The two-time defending Stanley Cup champions were expected to lose at least one of their stars to free agency this offseason. Instead, they re-signed Brad Marchand, Aaron Ekblad and Sam Bennett to long-term deals. Each player likely took a hometown discount to return. The Panthers are the favorite to win again next season, and the mix of weather, team culture, and no income tax could break the mold of what it costs to keep a championship roster together in the modern NHL.

They close by talking about Michael Jordan. As part of his anti-trust lawsuit against NASCAR, Jordan’s legal team was looking to compel NFL, NBA and NHL teams to share their financial information. It’s something the league obviously want to keep private, and likely something Jordan would not have sought if he were still an NBA owner.

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