Source
This leads us to the present, where the NBA is looking into signing a new broadcasting contract, taking effect in 2025. Only, this time the amount is projected to be substantially larger than what they fetched in 2014.
According to a report from Jabari Young of CNBC back in March, the NBA is looking at almost tripling the number of the current deal, aiming for over $75 billion that will compensate the league with $8.3 billion annually.
For the sake of reference, the NFL recently signed a new TV-contract worth $113 billion over a period of 11 years.
Needless to say, jumping $5.7 billion in TV-income annually will have a severe impact of the NBA's salary cap, which is calculated off the league’s Basketball-Related Income (BRI).
Working under the assumption that the players' union will once again prefer a major spike, a one-year increase of over $50 million isn't out of the realm of possibility.
According to a league source, projections indicate that a $171 million salary cap is possible, assuming no cap smoothing, by 2025.
Should the NBPA instead agree to cap smoothing, it's likely the league will still see annual increases to the extent of $15 million, according to source.
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It wasn't long ago we saw the first $200 million contract in NBA history. Stephen Curry signed one worth $201 million in 2017 and could be on the verge of signing another one soon.
The 2025 cap spike will see $200 million contracts get normalized, and for the league's elite, $300 million will become the new threshold.
Based off a cap that by 2025 sits at $171 million, a 35% max deal would start at $59.85 million and carry 8% annual raises. Over a five year period, that becomes $347.1 million with the final year being worth $79 million alone, which is $9 million more than the entire salary cap number in 2015.
This leads us to the present, where the NBA is looking into signing a new broadcasting contract, taking effect in 2025. Only, this time the amount is projected to be substantially larger than what they fetched in 2014.
According to a report from Jabari Young of CNBC back in March, the NBA is looking at almost tripling the number of the current deal, aiming for over $75 billion that will compensate the league with $8.3 billion annually.
For the sake of reference, the NFL recently signed a new TV-contract worth $113 billion over a period of 11 years.
Needless to say, jumping $5.7 billion in TV-income annually will have a severe impact of the NBA's salary cap, which is calculated off the league’s Basketball-Related Income (BRI).
Working under the assumption that the players' union will once again prefer a major spike, a one-year increase of over $50 million isn't out of the realm of possibility.
According to a league source, projections indicate that a $171 million salary cap is possible, assuming no cap smoothing, by 2025.
Should the NBPA instead agree to cap smoothing, it's likely the league will still see annual increases to the extent of $15 million, according to source.
────────
It wasn't long ago we saw the first $200 million contract in NBA history. Stephen Curry signed one worth $201 million in 2017 and could be on the verge of signing another one soon.
The 2025 cap spike will see $200 million contracts get normalized, and for the league's elite, $300 million will become the new threshold.
Based off a cap that by 2025 sits at $171 million, a 35% max deal would start at $59.85 million and carry 8% annual raises. Over a five year period, that becomes $347.1 million with the final year being worth $79 million alone, which is $9 million more than the entire salary cap number in 2015.
