NBA Likely To Artificially Keep Cap At $109M Instead Of True Figure Of $90M

Post #1 » by **RealGM Wiretap** » Wed Oct 28, 2020 9:07 pm

The NBA and NBPA are negotiating methods of artificially inflating the 20-21 salary cap to keep it around $109 million.

If the NBA and players were to link the salary cap to overall league revenue, it would have fallen to around $90 million.

Those discussions on the salary cap and luxury tax are at the core of what needs to be decided to finalize a revised collective bargaining agreement. The two sides must also agree to an escrow system to account for the anticipated shortfall.

The union is having its own internal discussions with its membership considering spreading the hit over multiple years to not put one subset of players at a disadvantage.

Via Adrian Wojnarowski, Zach Lowe/ESPN

DoctorDunc · Post #2 » by **DoctorDunc** » Thu Oct 29, 2020 1:18 am

It’s called denying reality. The revenues are the revenues. In any other business the the CFO gets fired.

puja21 · Post #3 » by **puja21** » Thu Oct 29, 2020 1:49 am

DoctorDunc wrote:It’s called denying reality. The revenues are the revenues. In any other business the the CFO gets fired.

Not true at all -- tons of companies (some publicly traded) are absorbing Covid-related costs to keep employees on

the_process · Post #4 » by **the_process** » Thu Oct 29, 2020 1:53 am

Tying the cap to revenue like usual down to a 90M cap would mean 22 out of 30 teams would be already capped out, therefore restricting FA and trades. And approximately half the league would be tax payers, which is obviously not feasible.

So that hurts everyone, and it is more beneficial for everyone to spread the hit out over a few years.

the_process · Post #5 » by **the_process** » Thu Oct 29, 2020 1:56 am

puja21 wrote:
DoctorDunc wrote:It’s called denying reality. The revenues are the revenues. In any other business the the CFO gets fired.

Not true at all -- tons of companies (some publicly traded) are absorbing Covid-related costs to keep employees on

Some companies are getting ready to slash Q1 2021 if revenues are not allowed to come back up. And some companies are getting a jump on it and doing their slashing now.

DoctorDunc · Post #6 » by **DoctorDunc** » Thu Oct 29, 2020 2:22 am

The failed assumption being that the shortfall is 100% Covid related. What they need is an honest internal review to address the shortcomings of the NBA product. There is a long list of issues. It starts with an attitude of putting the customer first. Adam Silver never talks about what NBA fans want. He will need to be replaced with a fresh face.