NBA set to announce new salary projections for 2020-21, potential drop in figures hinted at

As per reports from Adrian Wojnarowski and Bobby Marks of ESPN, the NBA front office has notified the teams regarding the impending release of 2020-21 salary and luxury tax levels which will in all likelihood drop as a result of the decline in revenue. They are expected to give the revised projections which will allow the teams to plan and make decisions leading to the Feb 6th trade deadline day.

Both Wojnarowski and Marks also stated that the potential reason for the changes is the loss of revenue coming in from China. The revised projections should indicate a decrease in the salary cap from the earlier expected $116 million to $113 million. China decided to pull sponsorships and coverage of the NBA games when Houston Rockets GM Daryl Morey commented in support of the Hong Kong protests in October which is said to have cost the NBA nearly $150 million.

Impact of reduced salary cap and luxury tax levels

It goes without saying that most NBA franchises will have a lot to ponder regarding the break-up of their respective wage bills in the upcoming season. Teams with multiple stars on max contracts, such as the Houston Rockets and the Philadelphia 76ers would have to toil hard in order to slot role players around their main men to build a competitive roster. It would either be that or coughing up a significantly increased payroll as a result of the accrued luxury tax.