Salary Cap Is Set for the 2007-08 season

The salary cap for the 2007-08 NBA season will be set at $55,630,000.

The mid-level exception for over-the-cap teams is $5,356,000, and the luxury tax threshold will be $67,865,000.

What does that mean for the Cavaliers:

  • The Cavaliers currently have about $64.5 million committed to salaries for next season.
  • The Cavaliers have $5,356,000 to spend with their mid-level exception and $1.8 million with the veteran’s exception.
  • The Cavaliers might be over tax threshold for the first time in franchise history as they look to re-sign free agents Anderson Varejao and Sasha Pavlovic.
  • For every dollar the Cavs spend over tax threshold, they will have to pay a dollar into a fund that is dispersed to teams under the tax line.

Lebron James will make about $43 million over the next three years and has an option for 2010-11 season that is worth about $17 million.

Sources: ESPN.com, Akron Beacon Journal