NBA's salary cap set at $94.1 million for 2016-17 season

Will next year's salary cap break $100M? (1:51)

Chris Broussard, Tom Penn, Amin Elhassan and Antonio Davis explain why we're seeing such large contracts in free agency and break down where the money is coming from. (1:51)

NEW YORK -- The NBA's salary cap for the 2016-17 season has been set at $94.1 million, a huge leap from last season that has led to the enormous deals being given to players in free agency.

The cap last season was $70 million. The increase was largely because of revenue increases tied to the league's new national TV deals, worth about $2.5 billion a year, that begin next season.

The new cap will go in effect at 12:01 a.m. ET on Thursday, ending the league's moratorium period and allowing teams to sign players and make trades.

The tax level will be set at $113.3 million, and the minimum team salary, which is 90 percent of the cap, is $84.7 million.

Also, the midlevel exception for non-taxpayer teams is $5.6 million. The taxpayer midlevel exception is $3.5 million. And the midlevel exception for a team with room under the cap is $2.9 million.