Perhaps unsurprisingly, the NBA has adjusted its salary cap expectations for the 2026-27 season down on account of decreasing local media revenues.
The news was first reported by ESPN NBA insider Shams Charania.
Per Charania, the league is projecting a $165 million salary cap for next season, a figure that is $1 million lower than prior projections due to an anticipated decline in local media revenue.
No doubt, a large reason for that projected decline is the shuttering of Main Street Sports Group, owner of the FanDuel Sports Networks, following this season. Reports indicate that Main Street has missed monthly media rights payments to most, if not all, of its associated teams since the company’s collapse became apparent earlier this year. 13 NBA teams are currently under contract with Main Street, leaving their local broadcast futures uncertain for next season.
With nearly half of the league looking for a local broadcast solution, the NBA may step in and launch a centralized local streaming platform a year earlier than anticipated. Per a report from Sports Business Journal earlier this month, the NBA is “in talks” with streamers including YouTube TV, Prime Video, ESPN, and DAZN to launch a local broadcast hub as soon as the 2026-27 season.
It’s rare to see salary cap expectations adjusted downward, however. Every year, it’s a pretty safe bet that the salary cap, which is a direct function of the league’s overall revenue, will increase. The question is simply, by how much? This season, the cap was set at about $155 million, so next season’s newly estimated figure still represents a $10 million increase. But the league’s local broadcast situation is certainly playing a factor, at least on the margins.
Luckily, the NBA is in Year 1 of its incredibly lucrative set of national media rights deals with ESPN, NBC, and Prime Video. Those contracts more than make up for the expected reduction in local media rights revenue, and will keep the salary cap on an upwards trajectory.
About Drew Lerner
Drew Lerner is a staff writer for Awful Announcing and an aspiring cable subscriber. He previously covered sports media for Sports Media Watch. Future beat writer for the Oasis reunion tour.