Kori Ellis
06-24-2005, 09:07 PM
This was in an article that someone else posted in the NBA forum, but I posted it here because it's very relevant to stuff that will happen this summer.
If anyone doesn't understand one of the changes, just ask and someone on the board will explain it to you.
1. The salary cap will be set each year at 51% of Basketball Related Income (BRI), up from 48%. That means last years cap of 43.87M will go up to the 47-50M range this summer, once revenue increases are factored into the equation.
2. The players will be guaranteed a total of 57% of BRI each year, up from no guarantee.
3. The escrow tax on player salaries will gradually be reduced from 10% to 8% over the life of the agreement.
4. The escrow tax will only be retained by the owners to offset salary costs when total salaries exceed 57%, just like in the prior deal, but in the new deal that threshold will be raised if overall league revenues increase to certain preset levels.
5. There are no changes being made to the general cap exception mechanisms which allow teams to exceed the cap to add players, such as the Mid-level Exception, etc.
6. For teams over the cap, trades will be allowed as long as they trade away as much first-year salary as they receive within 25% (up from 15%) + $100,000.
7. Base-year compensation rules, for trades involving players who just received a sizable raise, will be relaxed in some as-yet-undisclosed fashion.
8. The luxury tax will stay as is (dollar-for-dollar on teams above the same 61% threshold), but all teams (including those who pay tax) under the new deal will receive a full share of the escrow and tax collections. (In the old deal, they received amounts that were reduced or eliminated entirely, according to their spending level.)
9. The salary cap and luxury tax exceptions for players who are deemed ‘permanently injured’ will begin after one year rather than two.
10. Luxury tax exceptions will be added in some form for minimum salary players.
11. Minimum salary levels will be increased by 3.5%.
12. The maximum length of a new contract will now be 6 years for a player who signs with his current team (down from 7), and 5 years for a player who signs with another team (down from 6).
13. The maximum raises on a new contract will now be 10.5% annually (not compounded) for a player who signs with his current team (down from 12.5%), and 8% for a player who signs with another team (down from 10%).
14. Teams will be required to have a minimum of 14 players (up from 11) under contract. Maximum? Undisclosed, but presumably will still be 15.
15. The active roster will still be limited to 12 players, but the designation for the others will now be ‘inactive’ rather than ‘injured.’
16. The NBA age limit will be 19, and/or one year past high school, based on calendar year. There is likely to be a related league rule implemented that prohibits NBA scouts and personnel from scouting any high school games.
17. The NBA Developmental League (NBDL) age limit will be 18, down from 20.
18. Teams will be able to send players with less than two years experience to the NBDL for needed development during the year, while still retaining full rights, with the ability to recall any such player at any time as desired. Such players will receive their full NBA pay.
19. Teams will be able to send an assistant coach to their associated NBDL team to work with and monitor the development of their players.
20. First-round picks will be given standard contracts with two years guaranteed (down from 3), followed by two years of team options (up from 1). The contract amounts will remain standardized.
21. Second-round picks will be restricted through three years, and will be limited to the MLE for the first year of a new deal if they become a free agent within the 3 years, allowing their original team to match any offer and retain them as long as they have their MLE available.
22. Players will be subject to as many as 4 random drug tests per year (up from 1), with penalties increasing for failing a test on a 4-strike system (5-10 games, 25 games, 1 year, lifetime).
23. Suspensions for on-court misbehavior will be subject to arbitration if the penalty exceeds 12 games (formerly there was no arbitration regardless of length).
24. A team will have 7 days to match an offer for a restricted free agent (down from 14).
25. This summer, teams will be given a one-time opportunity to waive one player and eliminate luxury tax on any future contractual payments to that player. The salary will still count towards the cap, and payment will still have to be paid to the player according to the contract, but the team will not be subject to tax on that player’s contract.
26. There will be a longer-than-usual July moratorium this summer, as the wording on the deal is hashed out, but summer leagues and negotiations with draft picks and free agents will be allowed to take place during that time without interruption. No new contract signings (including draft picks) can take place til the moratorium ends this summer.
27. More money will be added to pension payments for the long ago players, pending approval under IRS regulations.
28. New rules begin with the new season that starts July 1, 2005.
http://www.dallasbasketball.com/headline_C.asp?pr=
If anyone doesn't understand one of the changes, just ask and someone on the board will explain it to you.
1. The salary cap will be set each year at 51% of Basketball Related Income (BRI), up from 48%. That means last years cap of 43.87M will go up to the 47-50M range this summer, once revenue increases are factored into the equation.
2. The players will be guaranteed a total of 57% of BRI each year, up from no guarantee.
3. The escrow tax on player salaries will gradually be reduced from 10% to 8% over the life of the agreement.
4. The escrow tax will only be retained by the owners to offset salary costs when total salaries exceed 57%, just like in the prior deal, but in the new deal that threshold will be raised if overall league revenues increase to certain preset levels.
5. There are no changes being made to the general cap exception mechanisms which allow teams to exceed the cap to add players, such as the Mid-level Exception, etc.
6. For teams over the cap, trades will be allowed as long as they trade away as much first-year salary as they receive within 25% (up from 15%) + $100,000.
7. Base-year compensation rules, for trades involving players who just received a sizable raise, will be relaxed in some as-yet-undisclosed fashion.
8. The luxury tax will stay as is (dollar-for-dollar on teams above the same 61% threshold), but all teams (including those who pay tax) under the new deal will receive a full share of the escrow and tax collections. (In the old deal, they received amounts that were reduced or eliminated entirely, according to their spending level.)
9. The salary cap and luxury tax exceptions for players who are deemed ‘permanently injured’ will begin after one year rather than two.
10. Luxury tax exceptions will be added in some form for minimum salary players.
11. Minimum salary levels will be increased by 3.5%.
12. The maximum length of a new contract will now be 6 years for a player who signs with his current team (down from 7), and 5 years for a player who signs with another team (down from 6).
13. The maximum raises on a new contract will now be 10.5% annually (not compounded) for a player who signs with his current team (down from 12.5%), and 8% for a player who signs with another team (down from 10%).
14. Teams will be required to have a minimum of 14 players (up from 11) under contract. Maximum? Undisclosed, but presumably will still be 15.
15. The active roster will still be limited to 12 players, but the designation for the others will now be ‘inactive’ rather than ‘injured.’
16. The NBA age limit will be 19, and/or one year past high school, based on calendar year. There is likely to be a related league rule implemented that prohibits NBA scouts and personnel from scouting any high school games.
17. The NBA Developmental League (NBDL) age limit will be 18, down from 20.
18. Teams will be able to send players with less than two years experience to the NBDL for needed development during the year, while still retaining full rights, with the ability to recall any such player at any time as desired. Such players will receive their full NBA pay.
19. Teams will be able to send an assistant coach to their associated NBDL team to work with and monitor the development of their players.
20. First-round picks will be given standard contracts with two years guaranteed (down from 3), followed by two years of team options (up from 1). The contract amounts will remain standardized.
21. Second-round picks will be restricted through three years, and will be limited to the MLE for the first year of a new deal if they become a free agent within the 3 years, allowing their original team to match any offer and retain them as long as they have their MLE available.
22. Players will be subject to as many as 4 random drug tests per year (up from 1), with penalties increasing for failing a test on a 4-strike system (5-10 games, 25 games, 1 year, lifetime).
23. Suspensions for on-court misbehavior will be subject to arbitration if the penalty exceeds 12 games (formerly there was no arbitration regardless of length).
24. A team will have 7 days to match an offer for a restricted free agent (down from 14).
25. This summer, teams will be given a one-time opportunity to waive one player and eliminate luxury tax on any future contractual payments to that player. The salary will still count towards the cap, and payment will still have to be paid to the player according to the contract, but the team will not be subject to tax on that player’s contract.
26. There will be a longer-than-usual July moratorium this summer, as the wording on the deal is hashed out, but summer leagues and negotiations with draft picks and free agents will be allowed to take place during that time without interruption. No new contract signings (including draft picks) can take place til the moratorium ends this summer.
27. More money will be added to pension payments for the long ago players, pending approval under IRS regulations.
28. New rules begin with the new season that starts July 1, 2005.
http://www.dallasbasketball.com/headline_C.asp?pr=