The NBA is considered one of the most successful sports leagues in the world today. It is currently ranked third, sitting behind the NFL and MLB, mainly due to the revenue it generates.
Last season, the league generated $12.75 billion in revenue, and is projected to hit $14.3 billion this season. The revenue determines the league-wide salary cap per team. However, following recent events regarding the NBA’s revenue, there will likely be adjustments to each team’s projected salary cap next season.
How Reduced Local Media Revenue Affects the NBA Salary Cap
NBA insider Shams Charania recently reported that the league is now expecting a reduction in the projected salary cap for next season. Initially, the league was projected to allot $166 million to the salary cap. However, due to the NBA’s decline in local media revenue, it appears that might no longer be the case.
According to Charania, the association has revised its projection for next year’s salary cap, and it will now likely be $1 million lower. This cuts the projection to $165 million next season.
“The NBA has informed teams that the league is projecting a $165 million salary cap for 2026-27 — $1M lower than previous outlooks due to a reduction in local media revenue,” Charania reported on X. “Minimum salary $149M, tax level $201M, first apron $209M, second apron $222M also $1M lower each.”
The NBA has informed teams that the league is projecting a $165 million salary cap for 2026-27 — $1M lower than previous outlooks due to a reduction in local media revenue, sources tell ESPN. Minimum salary $149M, tax level $201M, first apron $209M, second apron $222M also $1M…
— Shams Charania (@ShamsCharania) March 23, 2026
Several reports suggest that the league’s projected salary cap reduction is a direct result of Diamond Sports Group’s bankruptcy. DSG is the biggest broadcaster of regional sports networks in America. It is responsible for live NBA broadcast coverage on these networks.
Specifically, DSG had local media rights to 13 NBA teams. While it doesn’t seem like much, losing coverage of their games on TV networks still affects the league’s revenue generation.
Teams will now have to adjust their budgets for next season. While a $1 million decrease doesn’t seem like much to some, a reduction in budget allocation can significantly affect how teams allocate payments to every member of the organization.
