NBA weighs major overhaul to limit team spending in new collective bargaining agreement

The NBA is seeking to adopt a firm salary cap as it continues talks on a new collective bargaining agreement with the players union.

The rule would tighten how much teams across the league are permitted to spend on their respective rosters.

Currently, teams are allowed to spend above the NBA salary cap, but they are penalized with a luxury tax. The newly-proposed "upper spending limit" would create an absolute spending ceiling that effectively eliminates the luxury tax option.