NEW YORK - The NBA salary cap is going down for the first time in its 18-year history. <br>
<br>
The cap, which rose last year by $7 million to $42.5 million, was dropped on Tuesday to $40.271 million for the 2002-03 season primarily because of a $100 million-plus decrease in guaranteed television money. <br>
<br>
In January, the NBA completed television packages with The Walt Disney Co. and AOL Time Warner Inc. worth $4.6 billion over six years. Its deal with NBC expired at the end of last season. <br>
<br>
During the first four years of the NBA's current collective bargaining agreement, the average player salary increased approximately 54 percent from $2.6 million to $4 million. <br>
<br>
Though the average salary decreased last season from $4.2 million in 2000-01, it is expected that the average will rise next season because of scheduled salary increases in long-term guaranteed contracts, free agent signings, and exceptions available under the collective bargaining agreement. <br>
<br>
The players' union declined to comment Tuesday night. <br>
<br>
The NBA also announced on Tuesday that the mid-level exception that teams can offer free agents is going up from $4.538 million to $4.545 million. <br>
<br>
According to the union, players are going to get back $77 million from the NBA, in part because there wasn't a luxury tax assessed to teams because the combined salary and benefits failed to reach 61.1 percent of defined gross revenues. <br>
<br>
Of the $77 million, players will receive $22 million from the escrow because the percentage was only 60.2. In addition, a provision in the collective bargaining agreement called for salaries to rise at least $50 million, and they fell $43 million short, money that is being returned. <br>
<br>
The final $12 million, to be delivered in an annuity, is going back to players in new benefits. <br>
<br>
The minimum team salary for next season will be $30.2 million. <br>
<br>
Last year, the salary cap was increased from $35.5 million to $42.5 million. <br>
<br>
The increase of $7 million from the previous year's cap represented the second-largest annual jump since the cap was instituted for the 1984-85 season.
