Anthony Davis

Anthony Davis will not be highest paid rookie ever


There is a rookie salary scale in the NBA that makes first round-picks very affordable for owners for the first couple years at least, and really four or five for most players. It makes the truly elite players like a Derrick Rose or Blake Griffin a real steal for the first several years they are in the league.

And traditionally each year, the No. 1 overall pick made a little bit more than the guy before him.

Until this year.

Thanks again, new NBA salary structure. From Darren Heitner at Forbes:

The new collective bargaining agreement also stipulates that Davis will not get an increase in salary compared to last year’s number one overall pick, Kyrie Irving or the prior year’s first pick, John Wall.

Typically, first round picks receive a more favorable rookie contract than the players who were picked in the same slot as them the prior year. However, Irving’s (selected by the Cleveland Cavaliers with the team’s first overall pick in 2011) slot value in his first year of his rookie deal was $4,286,900, as was the first overall slot for the year before, where John Wall, who was taken by the Washington Wizards…

Anthony Davis will not only fail to receive an increase in his rookie year salary from what Irving and Wall garnered in their respective rookie years, he will also receive less money in years two and three of his rookie contract than Wall, who was selected in the same slot two years ago. While Wall’s third year slot is $4,929,900, Anthony Davis’ will be $257,200 lower (at $4,672,700).

We should note that players have a “slotted” salary and can sign a contract up to 120 percent of that slot — and you can bet Davis (and the other top picks) will get that extra 20 percent.

And yes, Davis is still going to make good money. More than a lot of NBA players, more than you and me. But in terms of the revenue he will generate for the Hornets (not alone production on the court) he will be a great value for the Hornets for the first few years.

“Bird rights” arbitration could impact Knicks with Lin, Nash, everyone

Injured New York Knicks guard Jeremy Lin reacts during pregame ceremonies before the Knicks play against the Miami Heat in Game 2 of their first round NBA Eastern Conference basketball playoffs in Miami

The Knicks — if they want to have any hope of adding Steve Nash or any other significant free agent this summer — have a lot invested in what an arbitrator says about “Bird rights” in the new Collective Bargaining Agreement. Because that new CBA ties GM Glen Grunwald’s hands behind his back.

It’s a long and complex tale, one told by Howard Beck at the New York Times with additional details from Larry Coon’s CBA FAQ. Stick with me through this.

First off, Bird rights are the rights of teams to go over the salary cap to re-sign players already on their roster. The league has interest in good players staying with one team and allowing fans to identify them that way (it’s good for marketing), so they provide a financial incentive for players to stay.

The question is, how do the Bird rights apply to waived players like Jeremy Lin and Steve Novak. The league and union disagree. From Beck at the Times.

The league contends (Bird rights) are lost when a player changes teams through waivers. The union is challenging that interpretation.

If the union prevails, the Knicks would be able to re-sign both Jeremy Lin and Steve Novak, their two top free agents, despite cap constraints. They would also retain a $5 million salary slot — known as the mid-level exception — for use on another player, possibly J.R. Smith, who might opt out of his Knicks contract.

But if the union’s challenge fails, the Knicks will probably lose Novak and possibly Smith, when free agency opens in July. And they will have little ability to sign significant a free agent — such as Steve Nash — once they re-sign Lin.

Here’s where it gets more complex for the Knicks.

The Knicks currently have about $64 million in salary on the books for next year, before Lin, Novak and J.R. Smith make their decisions, plus Landry Fields is a restricted free agent. The way the salary cap works in the new CBA is that there is there is a luxury tax line — which will be about $70 million next season — then $4 million above that is an “apron.” Once you go above the apron there are all kinds of tight restrictions on how much money you can offer new signings (it’s not a hard cap but it will feel like it).

Lin will get $5 million as a restricted free agent, not because he totally deserves that for his play but because he’s worth far more than that in marketing terms and Knicks will keep him (and he wants to stay). If the Knicks spend that on Lin they cannot give Nash a full mid-level exception of $5 million because it takes them over the apron, they can only offer $3 million.

However, if the arbiter rules the Knicks have the Bird rights on Lin and Novak, they could offer Nash (or Jason Kidd or Jameer Nelson or a host of other free agents) the full mid-level then go over the apron to re-sign their own.

All of which is to say — the Knicks are not making any big moves this summer. Nash can get the same money to play for the Knicks or Heat (a team that plays an up-tempo style), so where do you think he’s going? You can try to trade Amare Stoudemire and is $56 million uninsured contract, good luck with that.

I do not envy Knicks GM Glen Grunwald. The expectations on him are way out of line with the tools at his disposal.

Video: Darren Rovell, David Falk talk labor deal numbers

NBPA Meet To Discuss Current CBA Offer
1 Comment
This video is no longer available. Click here to watch more NBC Sports videos!

CNBC’s sports business expert Darren Rovell gives a great synopsis of the NBA’s labor deal and how it effects players and player movement.

Then he brings in agent David Falk — and shockingly, agents don’t like this deal. Falk lays out his case for why pretty well, like most agents he wants a more pure free market system where the top players can make more. (Falk, by the way, represents Elton Brand, Corey Maggette, Evan Turner and used to represent some guy named Michael Jordan.)

Billy Hunter outlines labor deal, steps remaining in memo

NBPA Meet To Discuss Current CBA Offer
1 Comment

You have questions… but mostly they revolve around finding a way for your favorite team to trade for Dwight Howard or maybe Rajon Rondo.

NBA players have questions about the new NBA Collective Bargaining Agreement, too. Theirs mostly revolve around, “When can we get back to work and get paid? And how much are we going to get paid?”

Billy Hunter tried to explain both the deal and the process to the players in a memo obtained by Sam Amick of Sports Illustrated.

As for the timing, first the players have to vote to reform the union (remember the union formally dissolved to make way for the antitrust lawsuits against the league). That process should have started Tuesday, Hunter says in the memo. Once that happens the details of the CBA will be hammered out between the two sides.

Hunter says the players will get to vote on the new CBA next week. With training camps and free agency set to open next Thursday, you can bet that gets done early in the week.

Then Hunter gets around to explaining the money.

Over the course of the 10-year agreement, collective player salaries and benefits will increase from $2.17 billion in 2010-11 to more than $3 billion by the end of the deal. If revenues exceed modest growth, we expect that collective player salaries will likely grow to over $3.5 billion. The average player salary will approach $8 million by the end of the deal.

Although players will not receive 57% of BRI as under the 2005 CBA, collective player salaries should experience the same annual salary growth as the last deal.… Nonetheless, thanks to the enormous success projected for the NBA, league revenues should grow so high that our collective annual salary increases will favorably compare to the increases we received under the 2005 CBA. On average, under the last deal, the players received annual collective salary increases of $70 million per season. Under the new agreement… the players will receive collective annual increases averaging at least $85 million each year over the term of the 10-year agreement. Beginning in 2012-13, we expect that collective salaries will increase by more than $100 million per season.

Hunter goes on to explain the challenges of the increased luxury tax but how they were able to maintain some flexibility for teams to spend who are paying the tax. The goal was to allow more player movement despite the tax, he said.

Go read the deal. Not all the players will like it and the memo is certainly Hunter selling it to his constituents. But at the end of the day they are not going to get a better offer and it’s not worth losing more pay to fight over the scraps.

Great, we have a handshake deal. So now what happens?

NBA Labor Basketball

David Stern and Billy Hunter shook hands. Figuratively, but there is a handshake deal in place for an NBA labor settlement. The framework for a full blown new NBA collective bargaining agreement is in place.

But that is a long way from an actual signed deal and NBA games starting on Christmas Day.

So, what happens next?

First, the negotiations never stop. Stern and Hunter may get to sleep in for a day but the attorneys for the two sides will be meeting long hours over the next week to 10 days to hammer out the “B-List” issues. Those are things like the draft age, the drug testing program, who can be assigned to the D-League and a host of other issues that need to be resolved. The two sides don’t always agree on those things, but none are deal breakers. They horse-trade these items for a while.

Meanwhile, the players will ask to have their anti-trust lawsuit in Minnesota dismissed and the owners will ask to have their preemptive lawsuit in New York on decertification issues dismissed as well.

Not long after, the NBA players union will be reformed. Just as it was before. As if nothing had happened.

Eventually the deal will be finalized and put to separate votes of the players and the owners. In both cases the vote will not be unanimous, there are hardliners on both sides that think their side gave up too much. But in both cases a majority want games and can live with this deal, and barring some dramatic turn it will pass.

Right after that, team facilities will re-open to players and coaches can contact their charges and start talking about the season.

Then training camps will open on Dec. 9, the same day that maybe the most wild and frenzied free agency period in NBA history will open. The talent on the market this year is not what it was in years past, but teams will move fast to get their free agents in place and into camp working with their new teammates.

Then on Christmas Day — tip off.

And while this season promises to be a roller coaster, it will be much more fun than the ups and downs of the lockout.