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The National Basketball Association today announced that the Salary Cap for the 2004-05 season will be $43.87 million. The new Cap goes into effect at 12:01 a.m. on Wednesday, July 14, when the league's "moratorium period" ends and teams can begin signing free agents and making trades.

The Salary Cap has increased during the current collective bargaining agreement between the NBA and the National Basketball Players Association from $26.9 million in 1997-98 to the new level of $43.87 million, the highest amount since the Salary Cap was established in 1984. Last season's Cap was $43.84 million.

During the current CBA, total player salaries and benefits have increased 57% from $1 billion in 1997-98 to $1.573 billion in 2003-04. For the 2003-04 season, a tax will be collected from teams equal to the amount by which their payrolls exceeded $54.6 million. The tax money is re-distributed to NBA teams.

The 2004-05 minimum team salary, which is set at 75% of the Salary Cap, will be $32.90 million next season.

The expansion Charlotte Bobcats, who begin play in the 2004-05 season, will have a Salary Cap and minimum team salary equal to two-thirds of the Salary Cap and minimum salary that applies to the rest of the league. The Bobcats' Salary Cap in 2004-05 is $29.25 million and their minimum salary is $21.94 million.