According to ESPN’s Adrian Wojnarowski, the NBA is pursuing an “upper spending limit”, or a hard cap. Unsurprisingly, it has already been met with significant resistance by the NBPA.
It’s understandable why owners would want this. As Marc Stein points out in his report on the subject, a hard cap would limit the exorbitant spending big market teams like the Warriors make. However, putting a cap on total player salaries would limit the amounts certain players can make while also falling short of significantly adding more parity to the league.
Below we analyze the current luxury tax system and how a hard cap could fall short.