NBA Seeking Upper Salary Cap In Next CBA

[RealGM Wiretap]

The NBA is pursuing an upper salary limit in its negotiations on a new collective bargaining agreement with the NBPA.

The idea has been met with significant resistance from the union and is considered a non-starter. 

The new system would replace the current luxury tax with a hard limit that teams could not exceed to pay salaries. 

The NBA and NBPA are working to reach an agreement prior to a December 15 deadline.

The league believes the current system fails to provide a level enough playing field to make more of the 30 teams competitive and that the financial imbalance is unsustainable. 

There is also skepticism among smaller NBA marketplaces who worry that an upper spending limit would fail to create the competitive parity that the league is hoping to achieve, instead causing well-constructed smaller market teams to have to break up cores of contending talent despite a willingness to enter into the luxury tax.

The league would also need to find a new mechanism for revenue sharing.

Via Adrian Wojnarowski/ESPN

[tigerae]

Good luck with that. I just don't see the players budging on that especially with the team values and profits going up year after year. All the teams are making profits now and that hasn't been an issue since they changed rev sharing. Not sure why the NBA is stuck on this issue.

[Johnny Bball]

There is also skepticism among smaller NBA marketplaces who worry that an upper spending limit would fail to create the competitive parity that the league is hoping to achieve, instead causing well-constructed smaller market teams to have to break up cores of contending talent despite a willingness to enter into the luxury tax.

This completely makes no sense. Why would is be small marlket teams worried about exceeding the Warriors spending to keep their team together, because its never happened.

My understanding of this is they want to cap the luxury tax a team can pay and not exceed it.

And its about time.

[tigerae]

There is also skepticism among smaller NBA marketplaces who worry that an upper spending limit would fail to create the competitive parity that the league is hoping to achieve, instead causing well-constructed smaller market teams to have to break up cores of contending talent despite a willingness to enter into the luxury tax.

This completely makes no sense. Why would is be small marlket teams worried about exceeding the Warriors spending to keep their team together, because its never happened.

My understanding of this is they want to cap the luxury tax a team can pay and not exceed it.

And its about time.

The Warriors also kind of cornered themselves. Because they not only went after KD, but also traded him away for DLo and then in turn for Wiggins instead of just letting him walk, they are now left with way too many maxed players with Poole joining that list. This is why Green hasn't received an extention and probably won't receive one. This is also why they didn't resign GPII (even though he was vital last year). They will have to choose between 2 of the 3 imo at some point. Klay, Wiggins or Green.

If Green ends up being the odd man out, I feel that will put an end to the Warriors championship aspersions unless they can find a cheaper defensive general which is highly unlikely.

As for small market teams, Milwaukee just won the championship a couple years ago and are still one of the contenders this year, so I agree, not sure what this post is trying to say there.

[The Beam King]

Good luck with that. I just don't see the players budging on that especially with the team values and profits going up year after year. All the teams are making profits now and that hasn't been an issue since they changed rev sharing. Not sure why the NBA is stuck on this issue.

Competitive balance. They could create a system where all 30 teams play by the same financial rules in terms of contracts. Similar to an auction draft in fantasy sports. How you utilize that is up to you.

But create a revenue sharing system that incentives winning and achievement that can be proportionate to increased revenue for thr league shared amongst the players and the union based on metric criteria that are team based.

This would encourage team play, winning and create a competitive balance.