On 2nd of July the National Basketball Association (NBA) announced its salary cap to a much anticipated of figure of $94.143 million with the maximum Luxury threshold of $113.287 million against a much speculated threshold cap of $111 million. Also to notice that a franchisee needed to spend at-least $84.729 million setting it as a salary threshold at 90% of the original salary cap.
The trades can take place after 7th of July 2016 00:01 ET, Thursday as the Moratorium period ends and the franchisees will be able to sign and trade free agents. A lot of trades have already been agreed upon but no contracts have been signed as if for now due to the restrictions imposed by the moratorium period.
Its is also important to note that the current CBA between the NBA and the NBPA allows three different mid-level exception for non tax paying franchisees depending upon their total salary expenditure. As the club not paying luxury tax set at $5.628 million, while the mid-level exception set at $3.477 million and the teams under the salary cap have an exception of $ 2.898 million.