Cha-Ching

NBA salary cap increases by 11 per cent for 2015-16 to $70 million

The NBA salary cap was set Wednesday for next season at $70 million, a higher-than-expected number that paves the way for free agent contracts to be signed.

The league said the cap increased by 11 per cent from last season’s $63.1 million and the 2015-16 cap will be the highest ever – though it will be shattered next summer.

It had been projected to come in closer to $67 million until recently.

With the cap set, the league’s moratorium will be lifted at midnight, and deals and trades that were agreed to since free agency opened on July 1 can become official beginning Thursday at 1:01 a.m. Atlantic.

Also, the tax level increased 10.3 per cent to $84.7 million. Teams whose payrolls exceed it will be subjected to penalties.

The salary cap is derived in part on league revenues.

It is expected to vault to about $90 million for the 201617 season, when the league’s new national TV contracts begin.

In the meantime, there’s plenty of money for teams and players next season. Maximum salaries will rise, because they are based on a percentage of the cap, depending on a player’s years of service.

LeBron James, should he sign for the max, would make $23 million next season with more than 10 years in the league.

There will be three spending exceptions available to teams. The non-taxpayer mid-level for this season is $5.5 million, the taxpayer mid-level is $3.4 million and the mid-level for a team with room under the salary cap is $2.8 million.