NEW YORK, July 15 (UPI) -- The NBA said Tuesday the league's salary cap figure for next season has been increased to nearly $44 million, reversing a one-year downward trend.
In addition, the luxury tax will be imposed for the first time, penalizing teams 100 percent for exceeding a salary threshold.
After the cap figure dropped last season for the first time, there will be a 9 percent increase for the 2003-04 campaign to $43.84 million, the highest number in league history. Last season, the cap number was set at $40.27 million.
Instituted in 1984, the salary cap represents the maximum amount of payroll a team can spend on players' salaries.
The cap is determined by a percentage of basketball-related income using a formula defined by the collective bargaining agreement.
The mid-level exception, the average salary for players, will increase to $4.917 million. The figure was $4.546 million.
