Salary Cap Values and Designated Gross Revenue (DGR)

The salary cap is based on income that the teams earn during a League Year. A percentage of that income, termed Defined Gross Revenues (DGR), is allocated for player expenditures. The DGR is based on ticket sales, merchandise sales, and broadcasts. The DGR is divided equally amongst all 32 teams.

Projected DGR x CBA Percentage = Players Share DGR

Players Share minus Projected League wide Benefits = Amount Available for Player Salaries

Amount Available for Player Salaries / Number of Teams = Unadjusted Salary Cap per Team

The CBA Percentages are as follows:

2004: 64.75%
2005: 65.50%
2006: 64.50%
2007: Uncapped Year

The Minimum Team Salary (MTS) is 56% for the remainder of the CBA. If a team does not allocate at least 56%, then the players on the team roster for that year will be directly paid the shortage.