NBA Financial Policy

The NBA Financial Policy governs how teams manage their budgets, salaries, and expenses to ensure competitive balance and financial stability. It includes salary caps, which limit how much a team can pay players, and luxury taxes, which penalize teams that spend beyond set thresholds. These rules encourage teams to make strategic financial decisions while maintaining a level playing field, preventing wealthier teams from dominating solely through spending. Overall, the policy promotes a balanced, competitive league by regulating team payrolls, revenue sharing, and financial practices.