NBA Salary Cap Case Study

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The National Basketball Association(NBA) has recently struck a new TV deal that will put in so much money into the salary cap(money that general managers use on their players or to get players )that a $90 million cap for the 2016-17 season was attainable.This amount of money is way too much as I will explain later. The increase in money for the team will put NBA teams to work because of all the upcoming free agents which includes big stars like Kevin Durant, Kevin Love, Dwyane Wade, Anthony Davis and several others will be up for auction.Some of the players have already made their decision and some of those decisions the were detrimental in my opinion.
The NBA salary cap and luxury tax threshold(increase in the total amount of money a team can have without serious penalty) initially was predicted to be about $67.1 million
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For example, The Houston Rockets,instead of getting a new player that can make a big difference after Dwight Howard left the Rockets to go to the Atlanta Hawks with a 70.5 million dollar deal,they decided to extend James Harden's ( Rockets Shooting Guard) contract to a 4 year $118 million dollars which in my opinion is one of the worst deals the Rockets could have done to make their team better.The Rockets GM should have gone to seek another star center to replace Dwight but it's too late for that now.There has been another surprising deal,one with the Chicago Bulls.The Chicago Bulls have recently signed with all-star Dwyane Wade for a 2 year $48 million dollar contract.Dwyane Wade who is a from Chicago spent his entire 13 year career with the Miami Heat,obviously picking a few championships along the way while often describing himself as a “heat lifer”. This new salary cap increase is making once "loyal players" turn back on their teams and leave for more money than they ever thought was possible for

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