Minimum Salary Threshold
| $139,191,000 |
Start of Regular Season
Minimum Team Salary and Minimum Threshold
Minimum Team Salary is calculated by taking Total Salaries for each Team and making adjustments below.
The Minimum Team Salary Threshold is 90% of the Salary Cap.
The CBA uses different terms throughout its discussion of Minimum Team Salary requirements. The definitions in the Guide differ to keep it simple.
Determine Penalties
If Minimum Team Salary* is less than the Minimum Threshold at the start of the Regular Season, then the following penalties are enforced:
- Pay League the difference between Minimum Team Salary and Minimum Threshold, which is then paid to the Players on their Roster;
- Add a Cap Hold to Team Salary for the difference;
- Prohibit Team from participating in profit sharing.
*Apply the following adjustments to Minimum Team Salary only for this specific rule:
- Include Salary that was excluded under the Long-Term Injury Exclusion;
- Include Salary that was excluded from an Expansion Team that waived a Player selected in an Expansion Draft;
- Exclude EIPPA amounts counted toward Team Salary.
During Regular Season
New Minimum Threshold Established
If Minimum Team Salary was below the Minimum Threshold at the start of the Regular Season, then the Team’s Minimum Team Salary at that time is its New Minimum Threshold for the rest of the Salary Cap Year.
At the start of the 2025-26 Regular Season, Team A only has $130,000,000 in Minimum Team Salary. The Team did not reach the Minimum Threshold, and therefore must (i) pay the difference of $9,191,000 to the League, (ii) that amount is added as a Cap Hold to the Team’s Team Salary, and (iii) the Team is prohibited from participating in revenue share from the tax paying Teams.
The Team’s New Minimum Threshold is set at $130,000,000, which the Team cannot drop below throughout the Regular Season for more than one day (see below).
Note that if a Team was above the Minimum Threshold at the start of the Regular Season, then the New Minimum Threshold is the same as the original Minimum Threshold.
Dropping Below New Minimum Threshold
If a Team’s Minimum Team Salary falls below the New Minimum Threshold during the Regular Season, then it must increase its Minimum Team Salary at over the New Minimum Threshold by the end of the next day.
In the 2024-25 Seson, the Pistons waived Paul Reed, causing them to drop below the Minimum Threshold. They had until the end of the next day to exceed the Minimum Threshold, and signed Javante McCoy to do so.
Minimum Cap Hold
A Minimum Cap Hold will be added to the Team’s Team Salary through the end of the Salary Cap Year for the difference between the Minimum Threshold and the lesser of (i) then-current Minimum Team Salary or (ii) Minimum Team Salary at the start of the Regular Season.
End of Cap Year
If at the end of the Salary Cap Year, the Team’s then-current Minimum Team Salary plus the payment made to the League is less than the Minimum Threshold, then the Team must pay the difference.
This adjustment might take place if Likely Bonuses were unearned.
Taking the hypothetical from above where Team A only had $130,000,000 in Minimum Team Salary at the start of the Regular Season. If the Team made no changes to the roster, and that Minimum Team Salary included a $1 million Likely Bonus that ended up not being earned, then the Minimum Team Salary would drop to $129,000,000 at the end of the Year. Team A would therefore have to pay the additional $1 million difference to the League.
How League Payments Work
The Team makes the payments due to the League under these rules within 10 days, and the League redistributes the payment to the Teams.