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.