New CBA Rules

[nate33]

I figure we need a thread to discuss the new CBA rules and how it will affect the Wizards (and other teams). Here is the best summary of the new CBA I've seen so far.

In general, the new CBA is surprisingly similar to the existing one. The major differences are:

*A higher luxtax: 1.5x for payrolls $5M or less above the cap, 1.75x for payrolls $5-10M above the cap, and a really punitive tax of 2.5x and 3.25x for payrolls $10M and $15M above the cap respectively

*Bird contracts are limited to 5 years and 7.5% raises. Non-Bird contracts are 4 years with 4.5% raises.

*150% Traded Player Exemption

*Some tweaks to adjust the rookie Qualifying Offer so that good rookies who happened to be drafted late get more money, and crappy rookies who happened to be drafted early get less.

*Salary cap holds are a bit smaller

*Teams must pay 85% of the cap in Years 1 and 2, 90% of the cap thereafter. (I assume the penalties for being below this threshold are the same as in the prior CBA. The difference between team payroll and minimal payroll gets distributed evenly among all the players on the team.)

*Players on contracts existing prior to the new CBA can be amnestied. Teams can amnesty one contract per year. It's also notable that an amnestied player undergoes a waiver process where new teams must bid for him (presumably, the highest bid wins though that isn't explicitly stated). The amnestied player's new salary gets subtracted from the compensation owed by the old team. So if we amnesty Rashard's $21M contract, and the Lakers are forced to bid $5M to sign him, then we will only owe him $16M.

[mhd]

Clearly the biggest new part of the deal is the salary floor concept with respect to how it relates to the Wizards. Bulletsforever said the Wiz would need to spend roughly 30+ million just to reach it if we amnesty Lewis. I'd fronload an N1 contract and try a BYOD deal, but many teams will have the cap space to absorb these types of deals (though no one will have as much as the Wiz).

[nate33]

The nuances of the post-amnesty waiver process may be a factor in Ted's decision to waive Lewis. Lewis will certainly get a least the full taxpayer MLE which is $3M. And if a non taxpaying team wants him, they'd probably we willing to pay the non-taxpayer MLE of $5M.

If we let Lewis go, we'd have the cap room to sign two Nick Collison style contracts. One for Nick Young, and one for someone like Josh McRoberts or Nenad Krstic. Basically, we could beef up our depth considerably while still keeping our post 2012 payroll at a bare minimum.

[mhd]

Nate, I'd try and trade a future 2nd rounder to Utah for Okur. He'd be a good vet center, he's expiring, and would enable us to reach the floor.

Utah saves cash, needs PT for Kanter, Favors, and Jefferson anyways.

[verbal8]

Is the tax level computed in the same manner as it is currently?

I really don't see any big impediments to player movement. Shorter contracts and the 150% trade exception would seem to actually increase movement.

Maybe the superstars stay put, but I think that means teams will be more active in building their supporting casts.

[nate33]

Is the tax level computed in the same manner as it is currently?

I really don't see any big impediments to player movement. Shorter contracts and the 150% trade exception would seem to actually increase movement.

Maybe the superstars stay put, but I think that means teams will be more active in building their supporting casts.

Players will move, but not to teams in the luxtax because the luxtax penalties are so high. There will be movement, but more parity. The way I see it, the Knicks are the only team that can afford to be more than $10M over the luxtax threshold for any length of time. Those penalties are brutal.

[nate33]

Nate, I'd try and trade a future 2nd rounder to Utah for Okur. He'd be a good vet center, he's expiring, and would enable us to reach the floor.

Utah saves cash, needs PT for Kanter, Favors, and Jefferson anyways.

That's a decent plan too. But ideally, I'd like to get some decent players locked up for the long term at below-market salary by overpaying them this year. Pay it forward.

[Ruzious]

Hey, if the Wiz really need to add a contract to stay above the minimum, I'm available! And they can get me without having to give up a draft pick. It's a win/win.

[fishercob]

I figure we need a thread to discuss the new CBA rules and how it will affect the Wizards (and other teams). Here is the best summary of the new CBA I've seen so far.

In general, the new CBA is surprisingly similar to the existing one. The major differences are:

*A higher luxtax: 1.5x for payrolls $5M or less above the cap, 1.75x for payrolls $5-10M above the cap, and a really punitive tax of 2.5x and 3.25x for payrolls $10M and $15M above the cap respectively

It would appear that this doesn't kick in until year 3 of the CBA, giving the current elite teams a two year window to go for it with big payrolls. It means Dallas doesnt have to disassemble their squad, can probably find a way to re-sign Tyson Chandler, etc.

*Players on contracts existing prior to the new CBA can be amnestied. Teams can amnesty one contract per year. It's also notable that an amnestied player undergoes a waiver process where new teams must bid for him (presumably, the highest bid wins though that isn't explicitly stated). The amnestied player's new salary gets subtracted from the compensation owed by the old team. So if we amnesty Rashard's $21M contract, and the Lakers are forced to bid $5M to sign him, then we will only owe him $16M.

There had been talk that this would not apply to players if they were traded after the new CBA is ratified -- meaning the Wiz could not trade Lewis to a team that then amnesties him. Do we have confirmation on this?

[verbal8]

*Players on contracts existing prior to the new CBA can be amnestied. Teams can amnesty one contract per year. It's also notable that an amnestied player undergoes a waiver process where new teams must bid for him (presumably, the highest bid wins though that isn't explicitly stated). The amnestied player's new salary gets subtracted from the compensation owed by the old team. So if we amnesty Rashard's $21M contract, and the Lakers are forced to bid $5M to sign him, then we will only owe him $16M.

If Lewis is amnestied, I don't think he is available for the MLE. I can see some team with cap space like Minny putting in an offer of $12 million for 2 years for Lewis.

However if Lewis could be traded and waived, he would be extremely valuable as a trade piece next season. A team could dump over $30 million in salary and only owe the guaranteed portion of Lewis' deal.

[verbal8]

I think the amnesty will be very interesting. With the "bidding process", I think you see some players get waived that have some value. Haywood is a player that comes to mind. With his contract he probably is slightly negatively in trade value. However if he got amnestied, Dallas clears some future cap issues at a cost of maybe $10 million and no cap space hit.

[hands11]

Clearly the biggest new part of the deal is the salary floor concept with respect to how it relates to the Wizards. Bulletsforever said the Wiz would need to spend roughly 30+ million just to reach it if we amnesty Lewis. I'd fronload an N1 contract and try a BYOD deal, but many teams will have the cap space to absorb these types of deals (though no one will have as much as the Wiz).

A huge front load on a Nick contract would be awesome. I like it.

[hands11]

I think the amnesty will be very interesting. With the "bidding process", I think you see some players get waived that have some value. Haywood is a player that comes to mind. With his contract he probably is slightly negatively in trade value. However if he got amnestied, Dallas clears some future cap issues at a cost of maybe $10 million and no cap space hit.

I can see that happening but since it doesnt kick in right away, they can resign Chandler, make another run and then amnesty Haywood in a year or two. I imagine if they are going to allow these team to make a run over the next 2-3 years, then the amnesty will not need to be used this year.

It is interesting to consider that we may not amnesty Lewis but instead keep him to be used for his expiring value that will be more valuable next year then this year.

With so many rookie contracts, the team does need to have someone taking up the slack. Lewis's contract is looking better and better all the time.

The details of the amnesty prevision are going to be a huge piece of the puzzle. That combined with the higher min team salaries and the 3 year off new luxury tax factors are the heart of this new deal for the Wizards.

[daSwami]

Interesting. if John Wall makes the all-star team the next 2 of the next 3 years (definite possibility), he'd be eligible for a much bigger contract after his rookie contract is up than if he only makes it once, or not at all.

[pancakes3]

a possibility but it's no cakewalk. Rose/Wade/Williams are imo locks to get into the ASG ahead of wall for the next 2-3 years, and not to mention the rondos and the joe johnsons of the league that will have better team records and more fan voters.

[20MexicanosIn1Van]

I'm not a fan of the amnesty clause and especially don't like that it will happen every single off-season. I think the bidding process is a good idea though if the owners insist on an amnesty clause.

Does the 150% trade exemption mean that trades need to be within 150% of equal salaries? Normally this would increase player movement but I think due to the increased luxury tax penalties it might not make much of a difference.

[Nivek]

I don't this deal promotes parity -- it still leaves the advantages in place for big markets and "quality of life" cities. Basically, the money is going to be the same wherever a guy goes. No one can spend over the luxury tax threshold for long. So, recruiting will be based on non-salary factors -- off-court income opportunities, weather, state income tax. Maybe chance of winning. Minnesota can't compete with Los Angeles for quality of life of issues. Unless a guy loves the freezing cold.

Ah well. It is what it is.

[doc.end]

Why each year? It says: "(each team permitted) to waive 1 player prior to any season of the CBA (only for contracts in place....) ..."

any is not every/each, right?

So one and done thing but you can wait with it and use it later (till you actually still have a contract eligible for that).

[verbal8]

Why each year? It says: "(each team permitted) to waive 1 player prior to any season of the CBA (only for contracts in place....) ..."

any is not every/each, right?

So one and done thing but you can wait with it and use it later (till you actually still have a contract eligible for that).

It does not seem there is an exclusion for players traded after the start of the new CBA.

I think there will be two classes of players amnestied, one is players that are way overpaid. The other is players that are slightly overpaid on long deals. The teams may hope that they get picked up and they are only on the hook for a small amount.

[Rafael122]

I was under the assumption you could only use the amnesty clause once throughout the life of the contract (CBA contract I mean).