NBA salary cap rises 6.5% as free-agent negotiations begin

The National Basketball Association announced Tuesday that the salary cap for the 2026–27 season has been set at $164.961 million, marking a 6.5% increase compared to the previous season.

Alongside the increase in the salary cap, the minimum team salary has also risen by more than $9.2 million to $148.465 million. The league’s first apron threshold has climbed to $209.015 million, an increase of $13.07 million, while the second apron has moved up to $221.686 million, reflecting a $13.862 million jump.

These new financial thresholds will take effect at 12:01 a.m. ET on Wednesday, approximately six hours after teams were allowed to begin negotiating with free agents. The negotiating window opened at 6 p.m. ET on Tuesday.

All free-agent discussions are required to pause at midnight Tuesday as the league enters its annual moratorium period. The moratorium will remain in place until 12 p.m. ET on Monday, July 6.

According to Spotrac, 29 of the league’s 30 teams are currently projected to be over the new salary cap. Only the Memphis Grizzlies are listed as having cap flexibility below the threshold.

The Denver Nuggets, Oklahoma City Thunder, and Orlando Magic are all projected to exceed the first apron level, though no teams are currently designated as hard-capped by the second apron.

Despite most teams being over the cap, this does not necessarily indicate a lack of flexibility. Several franchises are still projected to have meaningful spending room through exceptions and roster moves.

Per Spotrac projections, the Los Angeles Lakers, Brooklyn Nets, and Chicago Bulls each could have at least $30 million in available cap space to pursue free agents. Meanwhile, the Detroit Pistons and Los Angeles Clippers remain positioned to create additional space through potential roster adjustments.

—Field Level Media / Reuters