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NBA signing day brings salary cap, luxury tax questions

NEW YORK (AP) Free agency in the NBA can be so complicated that even teams mess it up sometimes.

The Houston Rockets and Nene had to negotiate two deals because it turned out the first contract they agreed to wouldn’t have been legal in NBA circles.

All the talk about salary caps and luxury taxes is when the game of basketball becomes a business. It’s one of the reasons more and more front offices are being led by former stat analysts instead of former stat stuffers.

So now that free agent signings have commenced, here’s a look at the salary cap, how it’s determined, and how teams get around it:

Q: Why are deals that were done days ago being announced today?