INQUIRER Sports

NEW YORK -- National Basketball Association clubs will work under a salary cap of $58.68 million for the 2008-2009 season, the league announced Wednesday as the NBA free agency signing period began.

The salary limit for each NBA team went into effect as teams were allowed to begin making trades and signing free agents following a moratorium period in which deals could not be finalized so a final cap figure could be calculated.

The cap is up $3.05 million from last season.

The tax level for the upcoming season was set at $71.150 million compared to $67.865 million last season.

Any team whose total salary exceeds $71.150 million next season will pay a tax on every dollar over the sum.

For every dollar over the cap, a dollar in tax will be paid.

The NBA's minimum salary, which every team must spend on talent, is $44.010 million, or 75 percent of the cap total.

The mid-level exception to salary cap limits is $5.585 million after being $5.356 million last season.