The New CBA
Posted: Sun Nov 27, 2011 7:11 am
owner's offer from 11/11, found here:
http://www.nba.com/news/Memo_to_Players_111311_3.pdf
changes specified by Billy Hunter in his letter to the players, found here:
http://espn.go.com/blog/truehoop/post/_ ... to-players
Tentative Agreement:
https://docs.google.com/viewer?a=v&pid= ... 4&hl=en_US
Breakdown:
Term of Agreement
10 years, with mutual NBA and Players Association opt-outs after year 6.
BRI split:
2011 51.15%
Years 2-10 from 49 to 51%
Salary Cap Threshold
2011-12 and 12-13 58,044,000
Years 3-10 of deal pre-determind formula tied to BRI
Minimum Team Salary
2011-12 and 2012-13 85% of cap 49,337,400
Years 3-10 of deal 90% of cap
Luxury Tax
2011-12 and 2012-13 1:1 (1$ for every dollar over)
Years 3-10 0-5 million over $1.50-for-$1
$5M - 10M $1.75-for-$1
$10M - 15M $2.50-for-$1
$15M - 20M $3.25-for-$1
every additional 5 million, rate increase by $.50-for-1$
Teams that are taxpayers 4 of 5 years (starting in 2011-12)
owe an additional $1.00-for-1$
Luxury Tax Threshold
2011-12 and 12-13 70,307,000
Years 3-10 of deal pre-determind formula tied to BRI
Threshold for being considered a taxpayer when using the MLE or trading:
4 million above the luxury tax threshold (post signing or trade)
2011-12 and 12-13: 74,307,000
Maximum Contract Lengths
Bird Rights Players 5 Years
Non-Bird Players 4 Years
Maximum Yearly Raises
Bird Players 7.50%
Non-Bird Players 4.50%
Non-Taxpayer Mid-Level Exception Can be used every year
Max Contract Length 4 years grows 3% yearly
2011 5,000,000
Taxpayer Mid-Level Exception Can be used every year
Max Contract Length 3 years grows 3% yearly
2011 3,000,000
Mid-Level Exception for Room Teams Can be used every year
Max Contract Length 2 years grows 3% yearly
2011 2,500,000
Bi-Annual Exception Can be used every other year
Can only be used by non-taxpayers
Max Contract Length 2 years grows 3% yearly
2011 1,900,000
Disabled Player Exception Set at the lesser of
1) 50% of injured player's salary
2) Non Taxpayer MLE
Traded Player Exception Non Taxpayers
150% + 100k Matching
Maximum of 5,000,000 in salary difference
Traded Player Exception Taxpayers
125% + 100k matching
Team is considered a taxpayer for salary matching if at or above lux tax threshold.
Base Year Compensation
Applies only to sign and trades where salary matching is applied.
BYC players cannot be traded before January 15th unless it is a sign and trade
Minimum Salary Exception
2010-11 Level. Grows by between 3.5%-4.5% yearly
Minimum player salary scale to be set at or about levels shown in 2005 CBA
for 2010-11 season until reduction in scale is proportional to reduction to
overall system (i.e., approx. 12% lower than under the 2005 CBA). Scale
grows by a percentage to be determined (between 3.5% and 4.5%) in future
seasons.
Rookie Scale:
Set at 2010-11 levels.
4.5% increases from years 1 to 2 and 2 to 3 of each player's deal.
Year 4 set by same table as last CBA (based on a % of year 3).
"First-year salary amounts for first round picks to be set at or about levels
shown in 2005 CBA for 2010-11 season until reduction in the rookies scale is
proportional to reduction to overall system (i.e., approx. 12% lower than under
the 2005 CBA). First-year salary amounts in future seasons’ rookie scales to
increase by a percentage to be determined (between 3.5% to 4.5%). Year-to-
year increases within each season’s scale to increase by 4.5% in years 2 and
3 and by the percentages set forth in the 2005 CBA rookie scale for year 4."
Maximum Salary
0-6 years 25% of cap
A player finishing his rookie scale contract will be eligible to receive a maximum salary equal to 30% of the Cap
if he signs with his prior team and is either:
1st, 2nd or 3rd team All-NBA 2 times
All-Star starter 2 times
1-time MVP
7-9 years 30% of cap
10+ years 35% of cap
Maximum salary can never be less than 105% of the player's previous year salary
(for example a guy making 20 milllion is eligible for an extenstion starting at 21 milllion).
Sign and Trades
Prohited for Taxpayer teams in years 3-10 of agreement.
Max Contract Length 4 Years
Max Annual Increase 4.50%
Player Options
Same as in the old CBA (none before year 4)
Qualifying Offers For Restricted Free Agents
Beginning in 2012-13, players defined as "starters" must have averaged over the previous 2 seasons either:
1) 41 games started, or
2) 2000 minutes played
A 1st round pick "starter" will receive the greater of
1) his existing qualifying offer, or
2) the equivalent for a qualifying offer for the 9th pick in the draft
A 2nd round pick "starter" will receive the equivalent of a qualifying offer made to the 21st pick.
A first-round pick drafted 1-14 who is not a "starter" receives the amount offered to the 15th pick.
Waiting Period For Matching RFA's
3 Days
Escrow
10% of player salary. system adjustments as necessary to avoid forecasted overage.
If necessary owners can take the 1% of BRI dedicated to new benefits.
"system adjustments as necessary" is code for lowering the cap and tax thresholds to compensate.
Salary Cap Holds
First Round Picks above avg salary 250% previous salary
below avg salary 200% previous salary
Bird Free Agent above avg salary 190% previous salary
below avg salary 150% previous salary
Early Bird FA 130% previous salary
Non-Bird FA 120% previous salary
Sending Cash In Trades
Cash paid or received by teams in trades is limited to an aggregate of $3M per team annually.
Waiting period for trading team to re-sign traded player who is waived by recipient team
One year from date of the trade, or July 1st after player's contract has expired.
Maximum Extension Lengths
Maximum of 4 new years for rookie extensions
except: Maximum of 5 new years for a maximum-salary Designated Player rookie extension
– team can have only 1 Designated Player on its roster at any time
Maximum of 4 total years for veteran extensions (e.g., 3 new years if extension signed during last year of player’s original contract).
"Stretching" Cap Hit for waived players
For new contracts, salary of waived players to be “stretched” for cash purposes such that
the player’s remaining protected compensation would be paid over twice the number of remaining contract years plus 1 year.
Key phrase is "New Contracts". Can't do this with existing contracts.
Sum of "Dead Money" could not exceed an agreed upon % of the cap.
Amnesty
Each team permitted to waive 1 player prior to any season of the CBA (only for contracts in place at the inception of the CBA)
and have 100% of the player’s salary removed from team salary for Cap and Tax purposes.
Salary of amnestied players included for purposes of calculating players’ agreed-upon share of BRI.
A modified waiver process would be utilized for players waived pursuant to the Amnesty rule
Teams with Room under the Cap could submit competing offers to assume some but not all of the player’s remaining contract.
If a player’s contract is claimed in this manner,
The remaining portion of the player’s salary will continue to be paid by the team that waived him.
Revenue Sharing
Nothing in CBA about it. Up to the owners.
A team in any season that uses the Non-Taxpayer Mid-Level
Exception or the Bi-Annual Exception, or that in year 3 or after
acquires a free agent in a sign-and-trade transaction, cannot at any
time thereafter have a team salary at any point during that season in
excess of $4 million above the Tax level.
Extension And Trades
Players can only receive only 3 total years
(IE only 2 new years if signed during the last year of the players contract)
Maximum Annual Increase 4.50%
Player Benefits
New benefits pool to be funded with 1% of BRI for post-career player
annuity and welfare benefits. This 1% of BRI benefits pool is included in
(and is not in addition to) the players’ 50% share of BRI (and is also
included in the players’ 51.15% share of BRI in year 1).
http://www.nba.com/news/Memo_to_Players_111311_3.pdf
changes specified by Billy Hunter in his letter to the players, found here:
http://espn.go.com/blog/truehoop/post/_ ... to-players
Tentative Agreement:
https://docs.google.com/viewer?a=v&pid= ... 4&hl=en_US
Breakdown:
Term of Agreement
10 years, with mutual NBA and Players Association opt-outs after year 6.
BRI split:
2011 51.15%
Years 2-10 from 49 to 51%
Salary Cap Threshold
2011-12 and 12-13 58,044,000
Years 3-10 of deal pre-determind formula tied to BRI
Minimum Team Salary
2011-12 and 2012-13 85% of cap 49,337,400
Years 3-10 of deal 90% of cap
Luxury Tax
2011-12 and 2012-13 1:1 (1$ for every dollar over)
Years 3-10 0-5 million over $1.50-for-$1
$5M - 10M $1.75-for-$1
$10M - 15M $2.50-for-$1
$15M - 20M $3.25-for-$1
every additional 5 million, rate increase by $.50-for-1$
Teams that are taxpayers 4 of 5 years (starting in 2011-12)
owe an additional $1.00-for-1$
Luxury Tax Threshold
2011-12 and 12-13 70,307,000
Years 3-10 of deal pre-determind formula tied to BRI
Threshold for being considered a taxpayer when using the MLE or trading:
4 million above the luxury tax threshold (post signing or trade)
2011-12 and 12-13: 74,307,000
Maximum Contract Lengths
Bird Rights Players 5 Years
Non-Bird Players 4 Years
Maximum Yearly Raises
Bird Players 7.50%
Non-Bird Players 4.50%
Non-Taxpayer Mid-Level Exception Can be used every year
Max Contract Length 4 years grows 3% yearly
2011 5,000,000
Taxpayer Mid-Level Exception Can be used every year
Max Contract Length 3 years grows 3% yearly
2011 3,000,000
Mid-Level Exception for Room Teams Can be used every year
Max Contract Length 2 years grows 3% yearly
2011 2,500,000
Bi-Annual Exception Can be used every other year
Can only be used by non-taxpayers
Max Contract Length 2 years grows 3% yearly
2011 1,900,000
Disabled Player Exception Set at the lesser of
1) 50% of injured player's salary
2) Non Taxpayer MLE
Traded Player Exception Non Taxpayers
150% + 100k Matching
Maximum of 5,000,000 in salary difference
Traded Player Exception Taxpayers
125% + 100k matching
Team is considered a taxpayer for salary matching if at or above lux tax threshold.
Base Year Compensation
Applies only to sign and trades where salary matching is applied.
BYC players cannot be traded before January 15th unless it is a sign and trade
Minimum Salary Exception
2010-11 Level. Grows by between 3.5%-4.5% yearly
Minimum player salary scale to be set at or about levels shown in 2005 CBA
for 2010-11 season until reduction in scale is proportional to reduction to
overall system (i.e., approx. 12% lower than under the 2005 CBA). Scale
grows by a percentage to be determined (between 3.5% and 4.5%) in future
seasons.
Rookie Scale:
Set at 2010-11 levels.
4.5% increases from years 1 to 2 and 2 to 3 of each player's deal.
Year 4 set by same table as last CBA (based on a % of year 3).
"First-year salary amounts for first round picks to be set at or about levels
shown in 2005 CBA for 2010-11 season until reduction in the rookies scale is
proportional to reduction to overall system (i.e., approx. 12% lower than under
the 2005 CBA). First-year salary amounts in future seasons’ rookie scales to
increase by a percentage to be determined (between 3.5% to 4.5%). Year-to-
year increases within each season’s scale to increase by 4.5% in years 2 and
3 and by the percentages set forth in the 2005 CBA rookie scale for year 4."
Maximum Salary
0-6 years 25% of cap
A player finishing his rookie scale contract will be eligible to receive a maximum salary equal to 30% of the Cap
if he signs with his prior team and is either:
1st, 2nd or 3rd team All-NBA 2 times
All-Star starter 2 times
1-time MVP
7-9 years 30% of cap
10+ years 35% of cap
Maximum salary can never be less than 105% of the player's previous year salary
(for example a guy making 20 milllion is eligible for an extenstion starting at 21 milllion).
Sign and Trades
Prohited for Taxpayer teams in years 3-10 of agreement.
Max Contract Length 4 Years
Max Annual Increase 4.50%
Player Options
Same as in the old CBA (none before year 4)
Qualifying Offers For Restricted Free Agents
Beginning in 2012-13, players defined as "starters" must have averaged over the previous 2 seasons either:
1) 41 games started, or
2) 2000 minutes played
A 1st round pick "starter" will receive the greater of
1) his existing qualifying offer, or
2) the equivalent for a qualifying offer for the 9th pick in the draft
A 2nd round pick "starter" will receive the equivalent of a qualifying offer made to the 21st pick.
A first-round pick drafted 1-14 who is not a "starter" receives the amount offered to the 15th pick.
Waiting Period For Matching RFA's
3 Days
Escrow
10% of player salary. system adjustments as necessary to avoid forecasted overage.
If necessary owners can take the 1% of BRI dedicated to new benefits.
"system adjustments as necessary" is code for lowering the cap and tax thresholds to compensate.
Salary Cap Holds
First Round Picks above avg salary 250% previous salary
below avg salary 200% previous salary
Bird Free Agent above avg salary 190% previous salary
below avg salary 150% previous salary
Early Bird FA 130% previous salary
Non-Bird FA 120% previous salary
Sending Cash In Trades
Cash paid or received by teams in trades is limited to an aggregate of $3M per team annually.
Waiting period for trading team to re-sign traded player who is waived by recipient team
One year from date of the trade, or July 1st after player's contract has expired.
Maximum Extension Lengths
Maximum of 4 new years for rookie extensions
except: Maximum of 5 new years for a maximum-salary Designated Player rookie extension
– team can have only 1 Designated Player on its roster at any time
Maximum of 4 total years for veteran extensions (e.g., 3 new years if extension signed during last year of player’s original contract).
"Stretching" Cap Hit for waived players
For new contracts, salary of waived players to be “stretched” for cash purposes such that
the player’s remaining protected compensation would be paid over twice the number of remaining contract years plus 1 year.
Key phrase is "New Contracts". Can't do this with existing contracts.
Sum of "Dead Money" could not exceed an agreed upon % of the cap.
Amnesty
Each team permitted to waive 1 player prior to any season of the CBA (only for contracts in place at the inception of the CBA)
and have 100% of the player’s salary removed from team salary for Cap and Tax purposes.
Salary of amnestied players included for purposes of calculating players’ agreed-upon share of BRI.
A modified waiver process would be utilized for players waived pursuant to the Amnesty rule
Teams with Room under the Cap could submit competing offers to assume some but not all of the player’s remaining contract.
If a player’s contract is claimed in this manner,
The remaining portion of the player’s salary will continue to be paid by the team that waived him.
Revenue Sharing
Nothing in CBA about it. Up to the owners.
A team in any season that uses the Non-Taxpayer Mid-Level
Exception or the Bi-Annual Exception, or that in year 3 or after
acquires a free agent in a sign-and-trade transaction, cannot at any
time thereafter have a team salary at any point during that season in
excess of $4 million above the Tax level.
Extension And Trades
Players can only receive only 3 total years
(IE only 2 new years if signed during the last year of the players contract)
Maximum Annual Increase 4.50%
Player Benefits
New benefits pool to be funded with 1% of BRI for post-career player
annuity and welfare benefits. This 1% of BRI benefits pool is included in
(and is not in addition to) the players’ 50% share of BRI (and is also
included in the players’ 51.15% share of BRI in year 1).
