The smart money: How NBL teams are building contenders

As the NBL continues to attract more elite talent, clubs are investing in their rosters like never before.

With competition at an all-time high, teams are looking for every possible advantage, and spending has become a key part of that equation.

According to ESPN’s Olgun Uluc, the Adelaide 36ers were the league's biggest spenders in NBL26. However, Bryce Cotton's Australian citizenship during the season significantly reduced the impact of his salary on the club's cap.

“The Adelaide 36ers are interesting … because if Bryce Cotton remained American, their cash spend would have been closer to $6 million … but because he was a marquee, his contract, which is around $1.3 million, it hits the cap around $250,000,” Uluc said on The Marketplace, presented by Paywise.

Under NBL rules, each team can have a combined total of four imports and marquees on its roster. The marquee system is designed to help clubs retain top Australian and international talent, by allowing only a portion of a marquee player's salary to count towards the salary cap, reducing both cap pressure and potential luxury tax payments.

“The big takeaway (from last season) is how much teams are spending,” Uluc added.

“When the salary cap rises, the seven per cent is the cap in which it is able to grow. And the reason it grew so much is because it’s a reflection of the spending.

“According to my numbers, we had three teams that were closer to spending $5 million, than who were spending $4 million. Keep in mind the salary cap is around $2 million.

“These teams were willing to go significantly over the cap. Obviously it’s a soft cap, so they’re willing to drop into the luxury tax in a significant way.”

According to Uluc's report, five of the six highest-spending teams in the league finished inside the top six on the ladder, with three clubs spending more than $4 million.

“Let’s be clear, talent costs money,” Pete Hooley added.

“The good players aren’t cheap. That’s why Adelaide, they bring in Bryce Cotton. Now you pay Kendric Davis, with his new deal puts him in the million-dollar bracket. We expect PJC to be in that company this year.

“The great talent who can get poached from overseas for much more money, you have got to pay them.”

With a soft salary cap and marquee concessions available, clubs are increasingly using the rules to maximise the amount of talent they can bring in, giving themselves the best possible chance of competing for a championship.