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If the new CBA is approved, it will feature, higher salary scales for rookies and veterans, two-way contracts, and an amended age for the 36 and over rule. While these changes are not drastic, they will better reflect the economic reality of the League.

Perhaps the most interesting and practical course I took in law school was alternative dispute resolutions, better known as ADR. It is a class with a vernacular of its own, with fun and foreign terms such as, ZOPA, BATNA, and splitting-the-baby. The most important part of ADR is learning the back and forth of the negotiation dance. This back and forth reality is playing out in the latest CBA negotiations between the NBA and NBPA.

The negotiation dance is more harmonious this time around than it was in 2011. This is hardly a surprise, given that the new TV Deal will provide an unexpected $2.4 billion in revenue to the League over the next nine seasons. This influx was not contemplated by the current CBA, leaving many players and owners disenchanted. Hence, both sides are more inclined to not extend it on December 15th. The lockout is the last thing owners and player want in this economic boom, and a new CBA will cure any talk of a lockout.

In what ways will the new CBA differentiate from the current one? Below, I have outlined some of the most important differences. Of course the inner working of any major transaction are subject to change until the “T’s” are crossed and the “I’s” are dotted. Let’s take a look:

· The 36 and over rule will be changed to the 38 and over rule. The 36 and over rule is there to discourage teams from signing players to contracts (4 years or more) that extend past their 36th birthday. The rule presumes that the last season(s) of a player’s contract are likely to come after retirement and that the player will draw compensation past his retirement. Thus, such compensation will be treated as deferred, increasing a team’s salary commitment on the front end of the contract. It treats the compensation for the year in which it was earned, not paid. The new CBA would keep this rule, however, it would change the age from 36 to 38. The reason for the change is simple. The NBA’s biggest stars are aging, and they want teams to offer them long-term contracts in their twilight years.

· The rookie and veteran minimum salary scales will be increased, perhaps by 50%. This makes sense. The scales will increase to match the economic reality. Rookies and veterans contribute to the League in meaningful ways. They account for much of the economic success of the League, and should be compensated accordingly by taking a larger percentage of the increased revenue pool.

· There will be 2-way contracts for players that transfer between the NBA and the D-League, and roster spots on NBA teams will increase by 2 additional players. A two-way contract would allow a team to keep a player it likes, even though it is not yet ready to sign him to a contract. A team could offer a player a 2-way contract and send him to the D-League. It would give the player a minimum salary of about $100,000 according to early estimates, far better than the standard $25,000 D-League contract. This would also allow the D-League to be more competitive with Euroleague salaries, thus attracting more talent. If a player gets called up to an NBA team and is on a 2-way contract, then he would get a pro-rated salary based on the NBA minimum. This increases financial prospects for younger players, while giving teams better opportunity to retain developing players. It’s a great idea, and if all goes well, it will be implemented in the next CBA. Under the current system, a team would not be able to retain a player without signing him to an NBA contract. The team then runs the risk of having that player get called up by other NBA teams.

· The extension will be for 7 years, with a mutual opt out for the 6th year. The current CBA, if renewed this December, would terminate in 2021. However, the new CBA would last until the end of the 2024 season. It is worth noting, that it would end one season prior to the ending of the new TV Deal.

· The Basketball Related Income (BRI) split will remain as it is under the current CBA. The players currently receive a share of anywhere between 49-to-51 percent. Currently, the players receive 51 percent. The owners are content with this, considering the players used to receive 57 percent. They would prefer to have a majority, yet it seems settled that the BRI split will carry over from this current CBA.

· The one-and-done rule will remain in place. The current age requirement is that a player be 19 years of age in the calendar year of the draft, and at least one year removed from high school if a U.S. player. This is a big issue and will take many years to be resolved. That being said, it is not surprising it was not resolved this year. I addressed this issue in my first post, so be sure to check it out here: http://pursuitofnba.blogspot.com/2016/09/silver-s-solution-feasible-to-nix-one.html

· Maintaining competitive balance is the most important issue for Commissioner Silver, but the plan to institute cap smoothing has been rejected by the NBPA.[1] This will not be resolved in the new CBA, which is perhaps the most disappointing thing for the Commissioner. Silver recently said, "[w]e're far from the perfect system…the players are divided a little bit as well because on one hand, they want that ability to be a free agent and to go wherever it is that they choose to play. On the other hand, they recognize that we're going to have a better league if talent is distributed in a more equal fashion." This is the tension, and there is no easy answer. This will take time to iron out.

None of these changes are drastic, but the salary increases along with the 2-way contracts will make a noticeable difference for players and teams. Probably the biggest disappointments are that the League failed to implement cap smoothing and find some way to restore parity, however, that will only come with time. These issues are not easy, and the good thing is that the League will continue on without a lockout. The state of the League is good and should be, at least, for the remainder of this immense TV Deal.