The NBA Board of Governors unanimously voted to increase the debt limit of owners to $325 million, according to a report from ESPN.
The vote, which reportedly took place Friday, raises the debt limit $75 million.
The decision comes ahead of higher team payrolls and luxury taxes expected throughout the league next season. NBA franchises are being valued higher than ever before, and players are being paid greater salaries.
For example, the Golden State Warriors’ Stephen Curry will begin making north of $40 million annually on his current deal in 2019-20. As it stands, three more players will join him above $40 million in 2020-21, all signed to extensions via Bird rights, which allow teams to exceed the salary cap to re-sign their own free agents.
The NBA last raised the owners’ debt limit in 2014, soon after the league completed a new $2.6 billion media deal.
—Field Level Media