2011 CBA rule changes

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2011 CBA rule changes 

Post#1 » by dockingsched » Mon Dec 5, 2011 4:00 pm

Larry Coon had a nice breakdown on how the 2011 CBA compares to the 2005 one. I'll post the ones that relate mostly to trades and transactions, but feel free to visit the article for more rule changes and more information on the ones posted.

2011 CBA breakdown by Larry Coon

The Original CBA FAQ by Larry Coon

Amnesty provision
• 2005 CBA: One player can be waived prior to the start of the 2005-06 season. The salary of the waived player will not count toward the luxury tax.

• 2011 CBA: One player can be waived prior to the start of any season (only one player can be amnestied during the agreement, and contracts signed under the new CBA are not eligible). The salary of the waived player will not count toward the salary cap or luxury tax. Teams with cap room can submit competing offers to acquire an amnestied player (at a reduced rate) before he hits free agency and can sign with any team.


Trade rules
• 2005 CBA: Teams over the cap can acquire no more than 125 percent plus $100,000 of the salaries they trade away. A team can receive up to $3 million cash in any trade.

• 2011 CBA: Taxpaying teams can acquire no more than 125 percent plus $100,000 of the salaries they trade away (same as 2005 CBA). Non-taxpaying teams (based on their post-trade salary level) can acquire up to the lesser of 150 percent plus $100,000, or 100 percent plus $5 million of the salaries they trade away. The cash a team pays or receives in trade is limited to $3 million annually.


Re-signing a traded player
• 2005 CBA: If a player is traded and subsequently waived by his new team, he cannot re-sign with his original team for 30 days (during the season) or 20 days (during the offseason) following the trade.

• 2011 CBA: If a player is traded and subsequently waived by his new team, he cannot re-sign with his original team for one year following the trade or until July 1 after the last season of the player's contract, whichever is earlier.


Base year compensation
• 2005 CBA: Applies for six months (but no later than June 30) after a player is re-signed with Bird rights or receives an extension of his rookie scale contract, and receives a raise greater than 20 percent. Base year compensation limits the player's outgoing salary for trade purposes.

• 2011 CBA: The criteria for determining whether a player is subject to base year compensation are the same. Players subject to base year compensation cannot be traded before Jan. 15, except in a sign-and-trade. If the trade is allowed, then base year compensation is applied to the player's outgoing salary only in a sign-and-trade transaction.



Midlevel exception

• 2005 CBA: Five years starting at the average salary ($5.765 million in 2010-11), with 8 percent raises.

• 2011 CBA: For non-taxpaying teams, four years starting at $5 million (base salary grows by 3 percent annually beginning in 2013-14), with 4.5 percent raises. Taxpaying teams are limited to three years, a $3 million base salary (which grows by 3 percent annually beginning in 2013-14) and 4.5 percent raises. Teams with cap room (therefore losing their midlevel exception) get a new midlevel that is for two years and starts at $2.5 million (growing 3 percent annually).


Minimum team salary
• 2005 CBA: Teams must spend at least 75 percent of the salary cap.

• 2011 CBA: Teams must spend at least 85 percent of the cap in 2011-12 and 2012-13, and at least 90 percent of the cap in later years of the agreement.


Additional limits for taxpaying teams

• 2005 CBA: No additional limits for taxpaying teams.

• 2011 CBA: Taxpaying teams have a smaller midlevel exception, can acquire less salary in trade, and cannot use the biannual exception. Starting in 2013-14, teams more than $4 million above the tax level cannot receive a player in a sign-and-trade transaction.


Luxury tax
• 2005 CBA: Teams paid $1 for every $1 their salary was above the luxury-tax threshold.

• 2011 CBA: Teams pay $1 for every $1 their salary is above the luxury-tax threshold in 2011-12 and 2012-13. Starting in 2012-13, teams pay an incremental tax that increases with every $5 million above the tax threshold ($1.50, $1.75, $2.50, $3.25, etc.). Teams that are repeat offenders (paying tax at least four out of the past five seasons) have a tax that is higher still -- $1 more at each increment ($2.50, $2.75, $3.50, $4.25, etc.).


New contracts
• 2005 CBA: Six years with 10.5 percent raises for Bird free agents; five years with 8 percent raises for other players. Maximum salaries are approximately 25, 30 or 35 percent of the salary cap, depending on the player's years of service.

• 2011 CBA: Five years with 7.5 percent raises for Bird free agents; four years with 4.5 percent raises for other players (including all sign-and-trade transactions). The maximum salaries are the same as the 2005 CBA, except players coming off their rookie scale contracts qualify for the 30 percent maximum if they meet certain criteria. Minimum and rookie scale salaries are frozen near their 2010-11 levels until revenues rise enough that the reduction is proportional to the 12 percent reduction in the overall system.


Free agents and restricted free agency
• 2005 CBA: A cap hold of 150 percent to 300 percent continues to count against the team's cap for its free agents who have Bird rights or were first-round picks. A team has seven days to match an offer sheet to its restricted free agent. Qualifying offers to restricted free agents are based on the player's draft position.

• 2011 CBA: Cap holds are reduced for most players who have Bird rights or were first-round picks, and now range from 150 percent to 250 percent. Teams have three days to match an offer sheet to its restricted free agent. Players can qualify for a better qualifying offer by meeting certain criteria. High-drafted players might receive a lower qualifying offer by failing to meet the same criteria.


Contract extensions

• 2005 CBA: Players coming off their rookie scale contracts can extend for five additional seasons. All other veterans can extend for five total seasons, which includes the seasons remaining on their current contracts.

• 2011 CBA: Players coming off their rookie scale contracts can extend for four additional seasons, although the team can designate one player who is eligible for five seasons at the maximum salary. A team can have only one designated player on its roster at any time. All other veterans can extend for four total seasons, which includes the seasons remaining on their current contract. The extension in an extend-and-trade contract is limited to three total seasons, which includes the seasons remaining on the current contract.


Stretch provision
• 2005 CBA: By mutual agreement, teams can alter the payment schedule to waived players. The remaining guaranteed salary is applied to the team's salary cap across the remaining years of the player's contract.

• 2011 CBA: The player's remaining salary and his cap hit may be stretched across twice the number of seasons remaining on the contract, plus one (for example, the salary and cap hit for a player waived with two seasons remaining may be stretched across five seasons). This is entirely at the team's discretion, but it applies only to contracts signed under the 2011 CBA.



Disabled player exception
• 2005 CBA: Five years, starting at the lesser of half the replaced player's salary or the average salary, with 8 percent raises.

• 2011 CBA: One year, starting at the lesser of half the replaced player's salary or the non-taxpayer midlevel exception.
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Re: 2011 CBA rule changes 

Post#2 » by dockingsched » Mon Dec 5, 2011 4:13 pm

feel free to ask questions, make some clarifications, or add more info.


anyway, one part of that that caught my attention is this part:

Starting in 2013-14, teams more than $4 million above the tax level cannot receive a player in a sign-and-trade transaction.


i've asked Larry Coon to clarify the "starting in 13-14" part, cause at first reading it makes it seem like tax paying teams like LAL could s&t trade players like d12 or cp3 this coming offseason.
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Re: 2011 CBA rule changes 

Post#3 » by HartfordWhalers » Mon Dec 5, 2011 6:30 pm

Rules definitely apear to allow S&T this upcoming summer for over tax teams. Next year's season is 12-13 so the 13-14 deadline would allow S&T at the '13 trade deadline.

There was some comments on the CBA forum that, the no trade then amnesty wasn't explicitly part of the framework in the draft deal (it just requires the contract to be in place before the new CBA and the amnestying to be before a season.) ESPN and NYTimes have both said no amnesty and trade, but there were several other reports at the time that have turned out to be misunderstandings, so it could still be possible.

I would conjecture that if a trade and amnesty is available, that the before season clause would mean you would have to wait a year to amnesty the player, which might effectively kill that market. However, in that conjecture you could do something like trade for Rashard Lewis next draft night when the 11-12 season is going on, and amnesty him one week later before the 12-13 season starts.
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Re: 2011 CBA rule changes 

Post#4 » by dockingsched » Mon Dec 5, 2011 9:29 pm

yeah, LC confirmed that tax pay teams could still sign and trade for players this offseason before the restriction kicks in, though the contract that the player could sign would be a a yr shorter with smaller raises.
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Re: 2011 CBA rule changes 

Post#5 » by FNQ » Mon Dec 5, 2011 10:52 pm

Seems like the entire purpose of the lockout was to make creating fan-trades harder :sigh:
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Re: 2011 CBA rule changes 

Post#6 » by Biff Cooper » Tue Dec 6, 2011 12:44 am

Non-taxpaying teams (based on their post-trade salary level) can acquire up to the lesser of 150 percent plus $100,000, or 100 percent plus $5 million of the salaries they trade away.


So non-tax paying teams can now acquire any (up to $5 million) salary they want without sending any salary back in return?
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Re: 2011 CBA rule changes 

Post#7 » by dockingsched » Tue Dec 6, 2011 12:49 am

eh, that's a good point. we're discussing this on the GB where its assumed that the "or lesser" part will be removed as it creates an advantage for tax paying teams, but i hadn't thought of the scenario you just posted.
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Re: 2011 CBA rule changes 

Post#8 » by Biff Cooper » Tue Dec 6, 2011 1:07 am

I guess my point doesn't make sense. 150% of the $0 in salarys they send away plus $100,000 would be $100,000 which would be well less than $5 mil. I didn't understand the lesser part either. They make a good point on the GB about the advantage to taxpaying teams though.
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Re: 2011 CBA rule changes 

Post#9 » by Amish Mafioso » Tue Dec 6, 2011 7:09 am

Teams that are repeat offenders (paying tax at least four out of the past five seasons) have a tax that is higher still -- $1 more at each increment ($2.50, $2.75, $3.50, $4.25, etc.).


Has this been confirmed? Another article he wrote says this was axed. It says it was updated Dec.3, so I am confused on this.

Friday's compromise included the elimination of the smaller mid-level exception for taxpayers, the restoration of sign-and-trade and extend-and-trade transactions, and the removal of the harsher tax penalties for teams that are taxpayers four times in a five-year span.


http://espn.go.com/nba/story/_/page/loc ... -agreement
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Re: 2011 CBA rule changes 

Post#10 » by shrink » Tue Dec 6, 2011 2:06 pm

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Re: 2011 CBA rule changes 

Post#11 » by dockingsched » Tue Dec 6, 2011 2:55 pm

Amish Mafioso wrote:
Teams that are repeat offenders (paying tax at least four out of the past five seasons) have a tax that is higher still -- $1 more at each increment ($2.50, $2.75, $3.50, $4.25, etc.).


Has this been confirmed? Another article he wrote says this was axed. It says it was updated Dec.3, so I am confused on this.

Friday's compromise included the elimination of the smaller mid-level exception for taxpayers, the restoration of sign-and-trade and extend-and-trade transactions, and the removal of the harsher tax penalties for teams that are taxpayers four times in a five-year span.


http://espn.go.com/nba/story/_/page/loc ... -agreement


that part is outdated. there is def. the inclusion on all those items (mini MLE, sign n trade restrictions, super tax for repeat offenders) per the article in the OP and other sources.
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Re: 2011 CBA rule changes 

Post#12 » by HartfordWhalers » Tue Dec 6, 2011 8:04 pm

Looks like the final nail in the trade and amnesty coffin. Also, amnesty waiver bids must include picking up the player at that bid for all remaining years on the contract:

http://nba-point-forward.si.com/2011/12 ... on-emerge/
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Re: 2011 CBA rule changes 

Post#13 » by HartfordWhalers » Wed Dec 7, 2011 12:42 pm

Looking like teams will be able to start signing free agents before amnestying a player.

Marc Stein wrote:Hearing most likely scenario w/amnesty clause is teams getting seven-day window between Dec. 9-25 to use it or carry it into 2012 offseason


But the specific seven days during which teams will be able to amnesty player before THIS season, at last report, still being negotiated


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Re: 2011 CBA rule changes 

Post#14 » by dockingsched » Wed Dec 7, 2011 10:22 pm

http://twitter.com/#!/KBergCBS

Appears to be small change in A-list item in CBA term sheet: minimum team salary this season is 80 pct of cap, 85 pct next season, then 90.
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Re: 2011 CBA rule changes 

Post#15 » by shrink » Thu Dec 8, 2011 12:15 am

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Re: 2011 CBA rule changes 

Post#16 » by Biff Cooper » Thu Dec 8, 2011 1:16 am

shrink wrote:Hardline owners wanted two things out of a new CBA - the chance to make money, and the chance to form a competitive team.

I think if the new CBA does the first, they bought enough of the owners votes to get them to agree to waive the latter.

The new CBA doesn't prevent superstars from clustering, and for some reason - waits two more years before it even tries. Same for lux taxes to allow superteams to go far into the lux. When the Lakers sign a TV deal worth $3 billion for 20 years, trying to maintain the semblance of competitive balance through payroll is out the window.

Personally, I don't think a league will be successful with four Harlem Globetrotters, and 26 Washington Generals, and it is certainly unfair to fans in the rest of the cities.


Has there been any announcement or news on how much revenue sharing there is going to be between the owners? I've heard 3x as much as there previously was, but that seems pretty vague, and I'm sure the owners are bickering amoungst themselves over the topic.

I can understand a little bit of your complaint. If they are dropping the BRI from 57 to 51, leaving the cap similar to what it was in 2010-11 is definitely anti-competitive balance. It seems like it would've helped competitive balance to increase the max player contract to 40-50% of the BRI to eliminate the opportunity of max players to team up. It may also help to make stiffer luxury tax penalties sooner. Yet at the same time the correlation between major markets and dominant basketball teams hasn't been all that true. It seems like your main complaint against the CBA is anti allowing stars to collect onto the same team. Like before, it seems like it is going to take more than just a lot of money to put together a real competitive team and there are a few things that should help competitive balance such as a higher salary floor, limiting cash exchanges in trades, revenue sharing, etc.
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Re: 2011 CBA rule changes 

Post#17 » by shrink » Thu Dec 8, 2011 9:38 pm

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Re: 2011 CBA rule changes 

Post#18 » by HartfordWhalers » Fri Dec 9, 2011 6:55 pm

Marc Stein wrote:NBA teams informed of key dates today, sources say. Window to amnesty players is Dec. 9 (today) thru Dec. 16. Trade deadline is March 15


http://twitter.com/#!/ESPNSteinLine/sta ... 6628015104
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Re: 2011 CBA rule changes 

Post#19 » by Amish Mafioso » Sun Dec 11, 2011 2:02 am

Does anyone know if there are any restrictions as to how long a team must wait before they can trade a player picked up off amnesty?

The Billups situation has me wondering what will happen with him.
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Re: 2011 CBA rule changes 

Post#20 » by shrink » Sun Dec 11, 2011 2:21 am

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