The conversation between human and AI assistant.
How does NBA system work?
Are there any salary caps in the NBA?
Yes, there is a salary cap in the NBA that establishes a limit on the amount of money teams can spend on player salaries. The amount of the cap is determined by league revenues and is adjusted each season. Teams can exceed the cap under certain circumstances, but they are subject to penalties and taxes. Additionally, there is a luxury tax that is imposed on teams that exceed the salary cap by a certain amount.