Is Bi-Annual Exception still part of new CBA?

westcoast01 · Post #1 » by **westcoast01** » Sat Apr 21, 2012 7:35 pm

In his "Breaking down changes in new CBA"(http://www.webcitation.org/63ZuFTeEO), Larry Coon's says NBA choose to eliminate Bi-Annual Exception in 2011. Does anyone know if the new CBA added it back? If it did, will every team start from scratch, e.g., the Knicks used it on JR Smith, so normally, they don't have it next year. But if teams start from scratch, then the Knicks will get a new one.

Thanks.

DBoys · Post #2 » by **DBoys** » Sat Apr 21, 2012 7:56 pm

westcoast01 wrote:In his "Breaking down changes in new CBA"(http://www.webcitation.org/63ZuFTeEO), Larry Coon's says NBA choose to eliminate Bi-Annual Exception in 2011. Does anyone know if the new CBA added it back? If it did, will every team start from scratch, e.g., the Knicks used it on JR Smith, so normally, they don't have it next year. But if teams start from scratch, then the Knicks will get a new one.

Thanks.

That article wasn't about rules for 2011, but rather about the new CBA's rules. And in it Coon did NOT say that the BAE was eliminated.

What he did say was: "Taxpaying teams...cannot use the biannual exception." Within that restriction, the BAE remains intact for everyone just like before.

westcoast01 · Post #3 » by **westcoast01** » Mon Apr 23, 2012 7:40 am

DBoys wrote:That article wasn't about rules for 2011, but rather about the new CBA's rules. And in it Coon did NOT say that the BAE was eliminated.

What he did say was: "Taxpaying teams...cannot use the biannual exception." Within that restriction, the BAE remains intact for everyone just like before.

Sorry, quoted the wrong post, here is the quote from his FAQ (https://webfiles.uci.edu/lcoon/cbafaq/salarycap.htm#Q19) right at the end of "BI-ANNUAL EXCEPTION",

"* The league opted-out of the CBA prior to the 2011-12 season. "

Dunkenstein · Post #4 » by **Dunkenstein** » Tue Apr 24, 2012 4:49 pm

The BAE still exists under the 2011 CBA. As in previous years, a team may not use this exception two years in a row. The only new restriction is that a team more than $4M over the luxury tax limit cannot use the BAE. This restriction includes a team that whose team salary would become more than $4M over the tax limit if it used the BAE.

westcoast01 · Post #5 » by **westcoast01** » Tue Apr 24, 2012 11:32 pm

Dunkenstein wrote:The BAE still exists under the 2011 CBA. As in previous years, a team may not use this exception two years in a row. The only new restriction is that a team more than $4M over the luxury tax limit cannot use the BAE. This restriction includes a team that whose team salary would become more than $4M over the tax limit if it used the BAE.

Thanks. Anywhere I can find the reference for this in the new CBA?

DBoys · Post #6 » by **DBoys** » Wed Apr 25, 2012 12:10 am

Art VII Sec 6
(d) Bi-annual Exception
(1) A Team shall be permitted to use the Bi-annual Exception during a Salary Cap Year only if (i) the Team’s Team Salary at the time the Exception is used and at all times thereafter during the Salary Cap Year does not exceed the Tax Level for such Salary Cap Year plus $4 million....