How is “average salary” defined?
The league computes the average salary by taking the total salaries paid during the previous season, dividing by 13.2 times the number of teams (other than expansion teams in their first two seasons) and then adding eight percent. The Bobcats were in their second season in 2005-06, so they did not count in the 2005-06 calculation, and the denominator is 13.2 times 29, or 382.8. In 2006-07 it changed to 13.2 times 30, or 396. This average salary figure is used when determining the salaries payable using the Early-Bird, Disabled Player and Mid-Level exceptions; when determining an unsigned free agent’s effect on team salary, and when determining the maximum salary in an offer sheet to a restricted free agent with one or two years of service.
