The NBA salary cap has been set for next season at 57.7 million U.S. dolalrs, a decline from 2008-09, allowing teams to begin signing players.

The figure the league announced Tuesday night was about 1 million dollars less than last season's cap of 58.68 million dollars, even though league-wide revenue rose 2.5 percent. The number is expected to drop further next season when the full effect of the economic difficulties hit.

The new salary cap went into effect at 12:01 am EDT today, ending the NBA's moratorium period and allowing free agents to sign deals with teams.

The luxury tax level also dropped to 69.92 million dollars. Any team whose salary exceeds that will have to pay 1 dollar for every 1 dollar it goes over.

(Agencies via Shanghai Daily July 9, 2009)