<P> The NBA salary cap is the limit to the total amount of money that National Basketball Association teams are allowed to pay their players . Like many professional sports leagues, the NBA has a salary cap to control costs, defined by the league's collective bargaining agreement (CBA). This limit is subject to a complex system of rules and exceptions and as such is considered a "soft" cap . </P> <P> The actual amount of the salary cap varies from year to year, and is calculated as a percentage of the league's revenue from the previous season . Under the CBA ratified in December 2011, the cap will continue to vary in future seasons based on league revenues . For the 2015--16 season, the salary cap was $70 million and the luxury tax limit was $84.74 million . For the 2016--17 season, the salary cap was set at $94.14 million and the luxury tax limit was $113.29 million . For the 2017--18 season, the latest projection is $99 million for the salary cap and $113 million for the luxury tax limit . </P> <P> The NBA had a salary cap in the mid-1940s, but it was abolished after only one season . The league continued to operate without such a cap until 1984--85 season, when one was instituted in an attempt to level the playing field among all of the NBA's teams and ensure competitive balance for the League in the future . Before the cap was reinstated, teams could spend whatever amount of money they wanted on players, but in the first season under the new cap, they were each limited to $3.6 million in total payroll . </P>

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