The NBA is increasing the salary cap from $112.4 million to $123.655 million ahead of the 2022-2023 season, the league announced in a press release Thursday. The tax level has also increased from $136.6 million to $150.267 million.
The NBA's soft-cap, which limits how much a team is permitted to spend on players, was established in the mid-1980s to even the playing field and foster adequate competition for all teams in the league. With the new changes to the cap, the minimum team salary is now $111.290 million.
The salary cap change goes into effect at 12:01 a.m ET on July 1.