Report: 1 team estimates NBA salary cap could drop by $30M

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The economic effects of the coronavirus pandemic on the NBA won't fully be known for months, but one franchise believes the league's salary cap is going to drop substantially.

That unidentified team told ESPN's Bobby Marks that the cap could decline by as much as $25 million-$30 million.

The league had projected the 2020-21 cap at $115 million, with a luxury-tax line at $132 million. With a $25 million reduction, the cap would drop below its 2016-17 level.

While the league and the National Basketball Players Association are expected to take steps to deal with the projected revenue shortfall, the impact will likely affect free agency when the 2019-20 season concludes.

Players with contract options may be more inclined to pick them up, while questions exist about max salaries. For example, Giannis Antetokounmpo will be eligible to sign a five-year supermax extension with the Milwaukee Bucks after this season. However, with lower revenues, max salaries are expected to decline.