Report: Salary cap $2M less than anticipated

Ashish Mathur

The NBA's salary cap will increase by $5 million this offseason, but most teams were expecting it to increase by about $7 million, according to report from ESPN.

Per the report:

The NBA notified teams in a memo on Wednesday that the projected salary cap will come in at $99 million, about $2 million less than estimates in April.

In addition, the luxury tax has been lowered from $121 million to a projection of $119 million.

This will squeeze some teams looking to create space to sign free agents when the negotiating period begins on July 1.

According to ESPN, the drop was caused by the number of playoff games being fewer than expected. Sources told Amico Hoops this directly impacted ticket and merchandise sales league-wide, resulting in a decrease in revenue.

Per ESPN: "The salary cap is still increasing by about $5 million from last season, but it isn't growing as much as previously expected. At one point, the NBA forecast this season's cap to go as high as $108 million."

While the network, a league partner, paints a strong picture of the league's health overall, sources told Amico Hoops a salary cap falling short of expectations is mostly a troubling sign.