Thoughts and questions about BRI and hardcaps
Posted: Sat Oct 15, 2011 6:27 am
Let's put out a hypothetical situation under the old CBA. Suppose all 30 teams exceed the softcap and pay $90M each in team salary. With 30 teams that's $2700M in player salary for the league. This year the BRI was $3817M. Technically the players could not receive more than 57% of the BRI which is $2175M. There would be $525M ($2700M - $2175M) due back to owners from the players, hence the escrow system (see http://nbastoppage.com/understanding-th ... nue-split/). A player with a $5M contract would really see about $4.028M ($5M / $2700M x $2175M).
If we change the situation with each team spending $60M in salary, the league salary would be $1800M. The owners would owe the players an extra $375M ($2175M - $1800M). A player with a $5M contract would really see about $6.04M ($5 / $1800M x $2175).
Clearly the BRI is share based system. The players are really negotiating a percentage of the BRI when they establish an individual contract. Seems to me players would want to see smaller teams (fewer players equals fewer shares) and not see their shares diluted by big spending teams exceeding the soft cap. That is, teams which overspend dilute the shares of teams that underspend.
In summary, the BRI is a hard cap. The players can only get so much money. The owners are asking that the BRI hardcap be spread equally among teams (so the Lakers can no longer outspend the Kings by a 2-to-1 margin). The players are arguing vehemently against, calling it a hard cap, which already exists. It's just a team cap and how does a team cap hurt the players ?
If we change the situation with each team spending $60M in salary, the league salary would be $1800M. The owners would owe the players an extra $375M ($2175M - $1800M). A player with a $5M contract would really see about $6.04M ($5 / $1800M x $2175).
Clearly the BRI is share based system. The players are really negotiating a percentage of the BRI when they establish an individual contract. Seems to me players would want to see smaller teams (fewer players equals fewer shares) and not see their shares diluted by big spending teams exceeding the soft cap. That is, teams which overspend dilute the shares of teams that underspend.
In summary, the BRI is a hard cap. The players can only get so much money. The owners are asking that the BRI hardcap be spread equally among teams (so the Lakers can no longer outspend the Kings by a 2-to-1 margin). The players are arguing vehemently against, calling it a hard cap, which already exists. It's just a team cap and how does a team cap hurt the players ?