Navigating Financial Decisions in the NBA: A Look Ahead

Every action, or non-action, comes with risk in the NBA. Teams are typically constructed during the summer through various methods such as the draft, free agency, and trades. While a significant move, like a potential blockbuster involving Luka Dončić, can shift a team's trajectory midseason, the majority of team-building efforts are made during the summer months. In a league governed by a salary cap system, intricacies surrounding contracts, luxury taxes, and financial strategies become paramount, making it nearly impossible to isolate basketball decisions from financial considerations. Teams face numerous choices that will shape both their immediate and long-term roster compositions.
As the NBA approaches the next season, several teams will confront challenging financial decisions prior to the commencement of the 2025-26 regular season. It is noteworthy that the NBA's new national television deals will take effect this July, leading to an anticipated increase in the salary cap to $154.6 million, which marks the maximum permissible increment of 10 percent year over year. The details provided about each team hinge on estimates based on this projected cap figure. While the NBA employs a soft salary cap, it is typical for most teams to exceed this limit by the season's end. Some organizations may choose to remain below the luxury tax threshold of $187.9 million, allowing them to share in the penalties incurred by teams exceeding that figure.
In the context of the 2024-25 NBA season, the Atlanta Hawks emerged with a record of 40-42, securing one win in the play-in tournament. They are projected to hold the 13th and 22nd picks in the upcoming draft with a starting payroll estimated at $151.7 million. The Hawks face critical decisions regarding star player Trae Young and free agents Clint Capela and Caris LeVert. The offseason will involve the team finding the right figure for a long-term commitment to Dyson Daniels, who won the Most Improved Player award and finished second for Defensive Player of the Year. Given Daniels’ age and contributions, he is expected to seek a substantial contract in the realm of at least $94 million over four years.








