Details on the new CBA

[Kori Ellis]

SAN ANTONIO, June 21 -- The NBA and the National Basketball Players Association announced today that they have reached an agreement in principle on the key items of a new 6-year collective bargaining agreement.
NBA Commissioner David Stern, Players Association Executive Director Billy Hunter and President Michael Curry announced the agreement prior to Game 6 of The Finals in San Antonio.

“This new agreement creates a strong partnership with our players, which is critical to our prospects for continued growth on a global basis,” said Stern. “Once the deal is finalized, the NBA and its players will be able to focus on the enormous opportunities we have together.”

“Although a definitive written agreement must still be completed,” Hunter added, “we believe we have reached the framework for a deal that preserves and enhances gains that the players have made under the expiring agreement. The new CBA deals fairly with the issues that are important to the league, and gives our sport the continuity that will be so important to its growth and to its fans.”

The agreement includes an increase in the salary cap, a lessening of the impact of the luxury tax, a decrease in the escrow withholding over the term of the deal (to 8 percent), and a guarantee by the league that the players will receive no less than 57 percent of basketball related income (a percentage that will increase as revenue increases). The maximum length of player contracts will be reduced to 6 years, from their current 7, and maximum annual increases in salaries will be reduced from 12½ to 10½ percent for teams resigning their own players and from 10 percent to 8 percent for teams signing free agents.

On non-economic matters, the minimum entry age will be increased from 18 to 19 years and teams will have the ability to assign players with less than 2 years experience to the NBA Development League. The number of random drug tests as well as the penalties for violations will be increased. The league will guarantee that, on average, all teams will have 14-player rosters, and players suspended for more than 12 games for on-court misconduct will be able to challenge the suspension before a neutral arbitrator.

While the agreement is being reduced to a definitive writing, the moratorium on free agent signings presently scheduled to expire on July 14 will be extended to July 22. During this period, summer leagues may be conducted, rookies may be signed, and free agents will be permitted to negotiate, but may not sign, new contracts.

The agreement is subject to the approval of the NBA Board of Governors and the membership of the Players Association.


KEY POINTS

The following are the key points agreed to by the NBA and the Players Association in their new 6-year collective bargaining agreement:


Players will be guaranteed to receive 57 percent of league revenues (BRI), the same percentage paid to players the last two seasons. (This is the first time the league has ever agreed to guarantee the players an agreed-upon percentage of revenues.)

The Salary Cap will increase from 48 percent of BRI to 51 percent of BRI. All Cap exceptions will remain unchanged, including the Mid-Level Exception ($4.9 million per team this past season).

The amount of money that can be withheld from player salaries under the “escrow” system will be reduced from 10 percent of salaries in year 1 of the new deal to 9 percent in years 2 through 5 and 8 percent in year 6. The 57 percent escrow level will increase with revenue growth.

The effect of the existing luxury tax on teams will be reduced and there will be no additional taxes. The tax level will be set at 61percent of league revenues (the same level as in the 2001-02 – 2003-04 seasons). Tax treatment for injured players and minimum salary players will be liberalized.

The maximum length of a player contract will be reduced by 1 year, from 7 years for a team’s own players and 6 years for other players to 6 years and 5 years.

The league will guarantee that, on average, all teams will have 14-player rosters.

The maximum annual increases in multi-year player contracts will be reduced from 12.5 percent for a team’s own players and 10 percent for other players to 10.5 percent and 8 percent.

Players will be subject to 4 random drug tests per season and penalties for use of performance-enhancing drugs will be increased.

The age limit for entering the draft will increase from 18 to 19 (plus one year removed from high school).

Players will have the right to an arbitrator’s review of Commissioner suspensions for on-court misconduct of more than 12 games (currently, no arbitrator review is permitted regardless of the length of the suspension).

Players in their first two seasons in the league may be placed on teams in the NBA Development League for skills development.

There will be an increase in the minimum salary and benefits. Pension benefits will be increased subject to IRS approval.

[WayDowntownBang]

The maximum length of a player contract will be reduced by 1 year, from 7 years for a team’s own players and 6 years for other players to 6 years and 5 years.

The age limit for entering the draft will increase from 18 to 19 (plus one year removed from high school).

A good move and a not-so-good move. The length of contract move is good for the teams, as you hardly ever see a player fullfill the entire length of a 7 year deal. Exceptions sure, but the rule? Good change.

The age limit, I'm sure there's a lot of people who will debate this on both sides, but it just seems to me that if you're ready to play, you're ready to play, regardless of your age. 18 seems reasonable because of the legality reason of signing contracts. If someone can tell me that Lebron wasn't ready to play in the NBA, I'll say you're a fool.

[samikeyp]

The age limit for entering the draft will increase from 18 to 19 (plus one year removed from high school).

interesting. I guess they are trying to boost the NBDL or the college ranks.

[nbascribe]

okay somebody check the stock on plungers cause the players got bent the "bleep" over by Billy Hunter......taking a 2.5% pay cut on shortened contracts???? What the ? Dayum I need to become a freaking lawyer and see if I can do a better job!!!

[Kori Ellis]

Well they pushed for 20-year-old minimum but settled for 19.

[samikeyp]

You would do a better job, Greg even without being a lawyer!

[T Park]

obviously they left the MLE alone.

Good for the SPurs and Scola and G Rob.

[ChumpDumper]

I think it will work out fine for the players. The NBA is really concentrating on its international profile and potential revenue growth from those markets. It's possible the BRI and resulting cap are going to grow enough to keep everyone happy.

[Marklar MM]

okay somebody check the stock on plungers cause the players got bent the "bleep" over by Billy Hunter......taking a 2.5% pay cut on shortened contracts???? What the ? Dayum I need to become a freaking lawyer and see if I can do a better job!!!

It is better than having no paycheck at all, isn't it.

[whottt]

obviously they left the MLE alone.

Good for the SPurs and Scola and G Rob.

It's good for Scola OR Grob...if they had split it we had a chance at getting both...now it's going to be one or the other. No way to get both. At least based on what I know of the CBA(which is not much).

Edit: Never mind...I forgot that teams can use use the MLE on more than one player...

Which confuses me...why were they discussing splitting it in the first place?

[combs84]

First Phil Jackson and now this. Its great and all but on Gameday again?? Another distraction from the game.

[ChumpDumper]

It's good for Scola OR Grob...if they had split it we had a chance at getting both...now it's going to be one or the other. No way to get both. At least based on what I know of the CBA(which is not much).

The MLE can already be split, that rule just would have forced it.

[Kori Ellis]

It's good for Scola OR Grob...if they had split it we had a chance at getting both...now it's going to be one or the other. No way to get both. At least based on what I know of the CBA(which is not much).

They don't have to give the whole MLE to one player. They can still split it if they want. Splitting it would have just made it so they wouldn't be able to give it all to one player.

[ducks]

do not the spurs have big dog's bird rights?

the rumor deal that scola likes is like 6 million for 3 years....

[T Park]

Its fine with me.

This is fantastic news, now one person I know of didn't look forward to this news.

[whottt]

Yeah I got it now...but what would have been gained by forcing a split?

More players making half as much? Must have been the owners pushing for that one.

I guess the MLE will go up with the cap though right?

So TPark might be right....this might give us a better chance at signing both.

[Kori Ellis]

More players making half as much? Must have been the owners pushing for that one.

Yes, they didn't want the mid-level talent getting the full MLE all the time.

I guess the MLE will go up with the cap though right?

Yes.

[ChumpDumper]

Yeah I got it now...but what would have been gained by forcing a split?

More players making half as much? Must have been the owners pushing for that one.

Probably the Nets after blowing all that scratch on Zo.

I guess the MLE will go up with the cap though right?

The MLE is the average of all NBA salaries -- not really dependent on the cap directly, but it's bound to go up as well.

[T Park]

If the MLE goes up, then Scola is practically here.

If it goes up to at least 5.5 or 6?? (It wont happen I know, but it might)

then that IMO gets em Scola and Robinson.

3 years 9 mill for each one.

[Kori Ellis]

If the MLE goes up, then Scola is practically here.

If it goes up to at least 5.5 or 6?? (It wont happen I know, but it might)

then that IMO gets em Scola and Robinson.

3 years 9 mill for each one.

I think they'll look around and see what other players are available as free agents before they lock into Robinson.

[Xolotl]

What exactly is the Mid-level Exception?

[combs84]

do not the spurs have big dog's bird rights?

the rumor deal that scola likes is like 6 million for 3 years....

1. Why would you have birds on Robinson? You signed him for a half a season...

2. Scola doesn't get to decide his own contract.

[whottt]

The MLE is the average of all NBA salaries -- not really dependent on the cap directly, but it's bound to go up as well.

Do the max and min get raised with the higher cap, or BRI or whatever?

I know the annual raises got lowered...but, without knowing everything about it...it sounds like the MLE might get a signifigant bump here.

[Kori Ellis]

What exactly is the Mid-level Exception?

When a team is over the salary cap, they get an exception amount to sign new players. This amount last year was ~$4.9M.

[combs84]

What exactly is the Mid-level Exception?

MLE is the average salary of the league, usually around 5 million dollars. Teams over the cap get to use this exception so that even though they are over the cap they still get to use it and improve. It can also be broken on a couple players instead of just one. You must be over the cap as earlier stated though.