One way that teams can increase their Salary Cap space is by carrying over any unused Cap space from the prior year. Teams must notify the league of the amount they wish to carry over from one year to the next by 14 days before the new league year.
This is a new rule that was added to the CBA of 2011. Prior to that teams used “phony” incentives to carry over Cap space from one year to the next. The new CBA did away with the shame process and instituted a more rational, straight-forward process.