There is more money available for NBA team owners. As reported by Adrian Wojnarowski of ESPN, the NBA Board of Governors has approved last Friday the approval on the raising of the debt limit to a dizzying amount of $325 million.

The NBA has raised the debt limit of owners to $325 million, a $75 million increase that could soften the impact of anticipated higher team payrolls and luxury taxes next season, league sources told ESPN.

The NBA Board of Governors unanimously passed the increased debt limit in a vote on Friday, sources said.

This recent development provides teams with a deeper financial source and stronger urge to spend to fund their operations. Teams that will go over the salary cap and will be shouldering onerous luxury taxes can opt to take out a loan in order to pay for other endeavors pertinent to running their ball clubs.

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The rising value and financial health of NBA teams was the primary impetus in elevating the debt limit. While teams with cash flow problems built around payroll and taxes can get relief, the ability to take on debt is often focused on infrastructure, facility improvements and other team-related investments.

Moreover, this could also prompt teams to invest more in salaries of players, thus increasing their chances of luring key free agents, knowing that they have an increased debt threshold.