Why The NBA Salary Floor Could Be The Hidden Key To Team Success This Season
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.
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Stepping into this week’s whirlwind of sports business buzz, Sporticast’s latest episode dives headfirst into the staggering evolution of the NBA’s financial landscape. The salary cap is leaping to a hefty 4.6 million next season—yes, that’s a cool 10% hike from this year, maxing out the limits set by the league’s collective bargaining agreement. This isn’t some surprise move; it’s a natural ripple effect from the NBA’s fresh 11-year media deals worth a mind-blowing billion. Already, players like Thunder guard Shai Gilgeous-Alexander are cashing in big with record-smashing “supermax” contracts that set new standards for player compensation. But it’s not just the NBA shaking things up—down in the NHL, the Florida Panthers are rewriting the playbook on retaining star power, locking in key players who apparently find warmth not only in the Florida sun but also in the team culture and favorable tax conditions. And if you thought that was the end, wait till you hear how Michael Jordan’s legal battles are nudging professional leagues to consider sharing their financial secrets—a move that could stir the pot in more ways than one. There’s a lot to unpack, and it’s as exhilarating as a buzzer-beater at the finals. LEARN MORE
That’s a 10% increase over this season (0.6 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 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, 5 million “supermax” contract extension, making him the highest paid player in NBA history on a per-year basis.
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 4.6 million next season.
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.
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.
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