THE NBA salary cap has been set for next season at US$57.7 million, a decline from 2008-09, allowing teams to begin signing players.

The figure the league announced Tuesday night was about US$1 million less than last season's cap of US$58.68 million, 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 US$69.92 million. Any team whose salary exceeds that will have to pay US$1 for every US$1 it goes over.