How The NBA Salary Cap Works

Exceptions, luxury tax and an owner that probably works for Putin. This is how the NBA Salary Cap works.

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The NBA has a soft salary cap unlike the NHL and NFL. This means you can go above the cap but you need to qualify for an exception. This is not hard to do. There are a long list of exceptions including Bird Rights, Minimum Salary, and Mid-level exceptions. However, using the exceptions has a drawback. If teams spend too much over the cap, they run the risk passing the luxury tax threshold. An extra $5 million in contracts will cost teams a minimum of $7.5 million in penalties. Nobody ignored this penalty quite like the Brooklyn Nets in 2013-14. Watch the video to learn more.