The latest on the new CBA part 2

Discussion in 'Portland Trail Blazers' started by SlyPokerDog, May 21, 2011.

  1. SlyPokerDog

    SlyPokerDog Woof! Staff Member Administrator

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    I am basing this list on several recent articles: a piece by Chris Sheridan and Chris Broussard of ESPN on May 4th, a piece by Mark Stein of ESPN on May 12th and a piece by John Lombardo of the Sports Business Journal that appeared on the Sporting News website on May 16th, These reports indicate that the owners have proposed the following:

    A hard salary cap, starting in the 2013-14 season at a level of $45 million. The next two years would continue to operate under a soft cap (meaning that exceptions will continue to make it possible for teams to operate above the cap) with a luxury tax system, but by the fall of 2013, every franchise must have a team salary figure of less than $45 million. Teams could no longer go over the cap to re-sign their own free agents or go over the cap to sign 1st round draft picks or go over the cap to do any of the things that current exceptions allow them to do.

    Reductions in all existing player contracts of between 15% and 25%. Apparently, current contracts would be seen as being in one of three tiers, based on the amount of annual salary that the player is scheduled to make, with each tier bringing one of those percentage reductions. There looks to still be a minimum salary amount for players, so the reductions would not take their salary below that minimum level, but a large number of players whose contracts extend further than this season would see significant reductions in how much money they would make.

    Reductions in the maximum contract amounts available. Players would not be able to make as much as they are able to make under the current CBA.

    Reductions in the amount of future rookie scale contracts. 1st round draft picks that sign within 3 years of being drafted currently are slotted into a rookie scale amount based on their draft position. Under this proposal, rookie salaries would still be limited, but at a level even lower than they are under the current CBA.

    Reductions in raises from one year to another within a contract. Under the current CBA, most players signing a non-minimum contract are eligible for a yearly raise equal to at least 8% of the first year's salary amount in that contract. If a player is signed using the Larry Bird exception or the Early Bird exception, he is actually able to receive a yearly raise equal to 10.5% of the first year's salary amount. However, the owners are now proposing that those percentages be reduced to 2% without Bird rights and 3% with Bird rights.

    Reductions in the maximum contract length available. Under the current CBA, players with Bird rights can sign a contract of up to 6 years in length. All other players are limited to a contract that is, at most, 5 years in length (some players, depending on their circumstances, are limited to even shorter deals). The owners propose that those players with Bird rights would be able to receive a contract of up to 4 years in length, with all others limited to 3 years at most.

    The elimination of sign-and-trade contracts.
    Currently, a player can negotiate to sign with his previous team and be traded within 48 hours to the team of his choice, as long as all three parties are amiable to such a deal. This would no longer be available under this proposal.

    The elimination of fully guaranteed contracts. No longer would NBA contracts be fully guaranteed. The first $8 million of any contract could be, at most, 50% guaranteed and any amount over $8 million could be, at most, 25% guaranteed. This would cover both existing contracts and any new contracts signed under the new CBA.

    The creation of a 'Star' designation for one player per team. This is not the same as the Franchise Tag designation of the NFL, which is a unilateral decision on the part of the team. Instead, players with this designation would, if they agree to re-sign with their previous team, receive more salary and a longer contract than what would be available for any other player on the team. Players would have the choice as to whether or not to accept this offer, but there would be clear financial incentive to do so. I have not seen any details printed as to what specific incentives would be available to these players, but it appears that they would be the only exceptions to many of the restrictions listed above in terms of salary amount and contract length.

    An amnesty program which would allow each franchise to waive one player and not have that player's salary count against their cap. Each player waived under this provision would still be paid, although it is unclear whether this payment would be at the current salary amount or at the amount reduced by the provision described above. It is also unclear what other rules would apply to such a program, although the assumption is that they would be similar to those that accompanied the 2005 amnesty program.

    Designation of each player into one of 4 categories. Under this proposal, each player contract would fit into one of these categories: 1) A minimum salary player; 2) A rookie scale player; 3) A maximum salary player; 4) Everybody else, with their salaries dictated by whatever salary cap room is available after the first three categories of players are accounted for.


    http://www.blazersedge.com/2011/5/2...-owners-last-proposal-for-a-new-cba#storyjump
     
  2. SlyPokerDog

    SlyPokerDog Woof! Staff Member Administrator

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    So we have a good idea of what the owners want. Now what in the hell do the players want? So far the silence from their side shows that they will eventually cave in and agree to anything.
     
  3. SlyPokerDog

    SlyPokerDog Woof! Staff Member Administrator

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    By the way the above post was written by Storyteller who really knows his stuff.
     
  4. handiman

    handiman Well-Known Member

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    The players want everything to remain as it is. Being a typical negotiation, the owners are going to ask for the moon (as detailed above), expecting to land somewhere in the middle.
     
  5. SlyPokerDog

    SlyPokerDog Woof! Staff Member Administrator

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    I bet the owners get 80% of what they want. All the players can threaten to do is strike and the owners have already taken that away from them by saying they'll lockout the players first.
     
  6. Denny Crane

    Denny Crane It's not even loaded! Staff Member Administrator

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    The owners cry poor, losing $300M. That's $10M per team, and no doubt the salaries are a huge part of their expenses.
     
  7. magnifier661

    magnifier661 B-A-N-A-N-A-S!

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    If the owners lock-out, don't the team and players still get their endorsements from Jersey sales? I mean it's probably not a ton of money, but that revenue is still there right?
     
  8. magnifier661

    magnifier661 B-A-N-A-N-A-S!

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    I have never seen a business that gives the majority of their revenue to the players. Usually salaries are 15-25% of gross sales. I highly doubt that the NBA has that 15-25% threshold. I would assume that number is almost 50%.
     
  9. BLAZER PROPHET

    BLAZER PROPHET Well-Known Member

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    I agree with this. I mean, even the players know the financial model is irrevocably broken and the NBA cannot remain as it is. Unless the players want to dismantle the NBA as we know it for a new league,then they will have to make serious concessions this time around.
     
  10. SlyPokerDog

    SlyPokerDog Woof! Staff Member Administrator

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    I would guess no. They would only get endorsement money that they signed independent of their team like shoe contracts.
     
  11. magnifier661

    magnifier661 B-A-N-A-N-A-S!

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    Would the team still get their money?
     
  12. SlyPokerDog

    SlyPokerDog Woof! Staff Member Administrator

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    Yes.
     
  13. BLAZER PROPHET

    BLAZER PROPHET Well-Known Member

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    Will S2 mods still get their money?
     
  14. magnifier661

    magnifier661 B-A-N-A-N-A-S!

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    Wow the team owners do hold all the cards then. And to be perfectly honest, I've never seen a business set aside more money to their employees. In fact, in the movie business, the employees are still making the 25% gross sales model. That is considered very high in the corporate world.
     
  15. magnifier661

    magnifier661 B-A-N-A-N-A-S!

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  16. SlyPokerDog

    SlyPokerDog Woof! Staff Member Administrator

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    [​IMG]
     
  17. THE HCP

    THE HCP NorthEastPortland'sFinest

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    If there is an NBA lockout........ there should be an S2 lockout! Denny should not profit off us if there is no basketball to talk about!
     
  18. SlyPokerDog

    SlyPokerDog Woof! Staff Member Administrator

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    Nah, we'll just ban you and bring back Mixum during the length of the lockout.
     
  19. THE HCP

    THE HCP NorthEastPortland'sFinest

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    Or he could just come on here and BUMP old threads.
     
  20. Pinwheel1

    Pinwheel1 Well-Known Member

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    If there is no hard cap until the fall of 13-14, then why would there be a need for an amnesty clause? Or can you wait over 2 years to use it? I do like that time frame. It gives teams time to come up with a strategy. Roy would be in the last year of his contract.
     
    Last edited: May 21, 2011

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