The NBA has officially informed teams they are now projecting the 20-21 salary cap at $115 million.

The previous projection was $116 million. The luxury tax is estimated at $139 million.

The NBA salary cap is currently at $109.1 million in the 19-20 season.

Many teams were preparing for the updated estimate to be closer to $113 million.

The NBA is likely to project a decline in the salary cap and luxury tax for the 2020-21 season due to a decline in league-wide revenue, league sources told Adrian Wojnarowski and Bobby Marks of ESPN.

The league will release their projections as early as Thursday, allowing teams to take them into account ahead of the trade deadline.

Many front office executives believe that the salary cap could drop from a projected $116 million down to $113 million next season. 

The luxury tax had been projected at $141 million. 

The ramifications from Daryl Morey's retweet supporting Hong Kong sovereignty, which included China pulling sponsorships and television coverage, is believed to have cost the league between $150 and $200 million.

Spencer Dinwiddie will launch his digital investment vehicle on Jan. 13. Dinwiddie has made changes to his product and has no longer tied the platform to his NBA contract.

“Spencer Dinwiddie’s advisors provided us with new information regarding a modified version of their digital token idea, which we are reviewing to determine whether the updated idea is permissible under league rules,” NBA chief communications officer Mike Bass told Shams Charania of The Athletic in a statement.

The NBA believed Dinwiddie's original plan was a “third-party assignment” and his third-year option violated anti-gambling rules.

Dinwiddie has wanted to design a method that he hopes could improve NBA players’ economic options.

Dinwiddie is averaging 22.4 points, 6.2 assists and 3.1 rebounds this season for the Nets.

“(Dinwiddie) has been an All-Star caliber player this season,” one high-ranking NBA team official told The Athletic, “and now this will create an interesting dilemma for the league.”