The NBA is projecting a $123.6-million salary cap for the 2022-23 campaign, sources told ESPN's Tim Bontemps.
That figure represents an approximate 10% increase from last season's mark.
It's the second consecutive campaign that the league's cap will increase year-over-year. After several years of growth, the spending limit was unchanged from 2019-20 to 2020-21 at $109.1 million, courtesy of Basketball-Reference. That was predominantly due to the financial impact of the COVID-19 pandemic. However, the cap saw a slight increase last season when it settled at $112.4 million.
The figure of $123.6 million falls right in line with the NBA's last reported projections, when it estimated a $122-million cap, according to The Athletic's Shams Charania. At the time, the league was reportedly predicting the luxury-tax threshold to reach $149 million.
The NBA operates with a "soft" baseline cap, which allows teams to exceed the annual marker in specific situations or by signing players using certain contract exceptions. However, any increases to the lower limit mean players who sign max contracts worth an annual percentage of the salary cap would earn corresponding raises in their pay.