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.