NBPA Meet To Discuss Current CBA Offer

What was finally decided with those “thorny” system issues?

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It was the most confounding part of this constantly confounding NBA lockout.

The owners and players got to a point a few weeks ago where they essentially agreed on the money side of the equation — how to split up the revenue coming into the league — but could not get close on the “system” issues that essentially came down to player movement concerns (the mid-level exception, Bird rights, the sign and trade rules, etc…).

Sometime early Saturday morning in New York — in the hours when the city that never sleeps even starts to close its eyes — they two sides reached a deal that will mean games on Christmas day and a 66 game season.

Where did those system issues land? Here is what we based on multiple reports.

• Next year the salary cap line will be at $58 million and the luxury tax line will be about $70 million, both where they were last season. One key difference is teams have to spend up to 85 percent of that salary cap line now, which means the minimum salary level for teams next season will be $49 million (last season it was more like $44 million). Also, the luxury tax on teams that exceed that tax line will be more stiff (it had been $1 for $1 over the line, now it will start at $1.50 for each $1 and escalate from there).

• Teams can only have one max-salary player that takes up to 30 percent of a team’s salary cap space.

• Larry Bird rights, the ability of a team to go over the salary cap or luxury tax line to re-sign their own players, remain essentially as it had been.

• Contract lengths are four years for free agents, but teams can add a fifth season for Bird rights players.

• Teams have only three days to match offers to restricted free agents, down from seven days in the old deal.

• The extend-and-trade remains, which means a team can sign a player to a Bird-rights size contract then instantly trade him — the stick that Carmelo Anthony used to force Denver to trade him last season without a financial loss for him.

Nobody is happier about that than Dwight Howard and Chris Paul, the current big free agents to be. Maybe Deron Williams too, but the Nets want to be buyers, not sellers.

• There will be a mid-level exception, reports Adrian Wojnarowski of Yahoo. Teams under the luxury tax can go for $5 million a season up to 4 years. For teams over the tax it is $3 million for up to 4 years.

• However, around the luxury tax line the mid-level will also impact Bird rights, reports Zach Lowe at Sports Illustrated reports:

If you use the full mid-level to get to or approach that barrier looming $4 million over the tax line, you cannot cross it by re-signing your own free agents via Larry Bird Rights. You can cross it to sign rookies or guys on veteran minimum contracts.

To use Lowe’s practical example, if the Boston Celtics used the mid-level to bring in someone like Jason Richardson to help on the wing that would take them over the tax line next season (to about $71 million total) and they would not be able to re-sign Jeff Green or Glen “Big Baby” Davis to anything more than minimum deals.

It means big spending teams will not just be able to take risks on free agent role players to go around their stars and not have consequences if it doesn’t work out (like the Lakers with Luke Walton, for example).

• There will be a $2.5 million exception for teams just below salary cap to go over the cap, reports Wojnarowski at Yahoo. However, those teams lose the right to the mid-level exception, too.

• There is no real change for the rookie deal or minimum salaries (which increase with years of service).

• There will be a “stretch” provision in the deal that allows a team to buy out a player and waive him, but spread his deal over a longer period of time (double the length of the contract plus one year) so as not to be such a cap hit. For example, if a player has three years, $30 million left on a deal and the teams want to waive him, they would have him on the official books for seven seasons at $4.3 million. It will look weird to see a guy on the books who was let go years before, but that space allows the team to not be completely hamstrung by a bad deal.

Call it the Eddy Curry rule.

• There also will be an amnesty clause in this deal that will allow teams to waive one player and wipe that salary almost totally off the books (75 percent goes away). This is similar to what was done in 2005, although then it only counted as savings against the luxury tax, now it counts as savings against the cap as well.

The Orlando Magic will have to choose between Gilbert Arenas or Hedo Turkoglu for this one. Tough decision.

Draft age limit, other “B-list” issues still to be resolved

NBA And Players Representatives Meet To Discuss Possible Settlement

There are still some big issues sitting out there unresolved in the NBA labor talks.

At what age can players declare for the NBA draft? Keep it at 19 (the one-and-dones) or move it to 20? Or 18? Then there are the specifics of the NBA drug testing policies. And the rules in the unlikely event of the league contracts a team. Plus the owners still have to finalize their revenue sharing plan.

That’s just the tip of iceberg of the B-list issues the lawyers for the NBA owners and players still have to hammer out. They may be secondary issues to how to divide up the money, but they impact the lives of players and future generations of NBA players.

These issues are not going to derail the framework of the NBA labor deal hammered out by NBA owners and players in the wee hours of Saturday morning in New York.

Neither side can afford to let that happen. The five-month NBA lockout that cost 480 games of this season has already tested the faith of NBA fans and risked alienating the fan base in the middle of the worst recession the nation has seen in more than 50 years. To go back on the handshake deal now, to offer a season then pull it back, would simply devastate the game in a way neither side can afford to do. What’s the point of arguing over how to divide the revenue pie if the pie gets much smaller?

But there are still plenty of issues on the table. And the sides don’t agree on them.

The NBA draft age limit will be the biggest. In early proposals the owners wanted to move it to age 20 — essentially two-and-dones. The players have said this is something they want to see moved back to age 18. Expect this to move to 20 or stay the same — this is a more important issue for owners. They do not want to go back to scouting high school players again, both for the expense of it and the unpredictability of the picks. The owners like the idea of more college ball during which time players can be evaluated, plus the NCAA hype machine can already start turning them into stars fans want to follow. Both good things for the owners. Which is why they want this more than the players want the issue moved back to age 18.

This will be one of the next issues on the table and could be decided before the weekend is over, according to a source near the talks.

Other issues include can the league start testing for human growth hormone with a blood test as Major League Baseball just agreed to? That will be a hard sell with players but would be welcomed by many fans.

Another key issue for fans will be the rules on assigning players to the D-League. In the old deal players could be sent down only for the first two years of their contracts and at full NBA salary. Owners want to be able to send players down for more years — up to five — and reduce their salary while down in the “minors.” More years is one thing but the salary reductions would be a very tough sell to the union.

Almost tied to that, should the NBA draft be expanded to a third round? The idea from owners — aside creating a little more draft buzz — is to find guys that they can send to the D-League and develop into NBA players over a few years. Already much of the second round is that way, do we need more?

The other big issue out there is not in the labor deal itself but will be key — the owners still need to finalize the revenue sharing plan amongst themselves. Proposals were put forward but the owners didn’t feel they could talk about revenue sharing until they saw how much they were getting back from the players. Now they know. But getting big markets to fork over more to small markets is always going to be contentious.

There are a host of other interesting little issues we will get to discuss just like those over the coming weeks.

Point is, while the NBA is on the verge of a labor deal there are a lot of issues still on the table. Negotiations will continue. And for guys like high school seniors with dreams of the NBA, those talks matter a lot.

NBA owners won. Big. But the players can live with it.

CORRECTED VERSION - NBA And Player's Association Meet To Negotiate CBA

As the talk starts to build of all the little concessions the NBA players got in the last week to make an NBA labor deal happen in time for games on Christmas day, remember this:

The owners won.

In a massive way. This is an Attila the Hun sweeping through Eastern Europe kind of win — devastating and total.

David Stern and the owners came into these NBA labor talks saying they lost more than $300 million last season and $400 million the year before that. By getting the players to agree to what is in practice a 50/50 split of basketball related income (although the deal allows the players to get to 51 percent if revenue increases enough) the owners got the players to essentially accept a 12 percent salary cut that will cover those losses.

This will come to more than $3 billion back in the owners’ pockets if the deal lasts the full 10 years (both sides can opt out of the deal after six years). What’s more, the deal means the players will have shorter contracts with lower raises going forward. Plus, the system now ties the hands of larger market, bigger spending teams helping depress salaries that way.

The owners will tell you they didn’t get everything they wanted, some will vote against this deal. Those guys are fools — they got more than enough to balance their books. Combined with more robust revenue sharing — soon to be triple what it was — small market owners should be able to break even or turn a profit. They should be able to compete (they could before, ask San Antonio and Oklahoma City). If they can’t, well, it’s on them now. It’s not the system.

All that said, the players got enough small victories — and a couple key ones — that this is a deal they can live with.

Early in the lockout, PBT spoke with former NBA players union president Charles Grantham and he said the smartest move the union ever made, the thing they could not give up in these talks, was keeping the salary cap tied to league revenue. Early offers from the owners wanted to detach the two — players salaries would stay flat at about $2 billion a year and all of the money from expected growth in the league (such as a new national television deal coming in 2016) would go straight to the owners pockets.

The players won that fight. They will get a smaller share of that revenue, but as the league’s revenue grows player salaries will go up. Grow the game and grow how much money you make.

The other two hills the players were willing to die on were guaranteed contracts and a hard salary cap. The owners relented on those as well. Yes, the owners now have more ways to get out of bad contracts faster, and yes the new luxury tax rules make it much more costly for high-revenue teams to spend big, but the players won those fights on principle.

There were other small victories, such as getting the threshold to get to the 51 percent of revenue lowered to a makeable goal. The players got the extend-and-trade so their biggest stars can better control their exits from teams. They got a solid mid-level exception for tax paying teams.

That was enough. It needed to be enough because the players were going to start losing more money in salary than they were making back fighting over the scraps of this deal.

But this negotiation was all about the money, and the owners got a lot more of it. They won. The small market owners in particular should now be able to turn a profit. The players got a way to save face at the end but the owner won and won big.

With this caveat…

In 1999, after a lockout that lasted into January, the owners were thought to have won. They got a cap on max salaries, so that there would be no more deals like the one Kevin Garnett and Shaquille O’Neal had gotten. They got a percentage that capped players’ salaries in total at 57 percent. Everyone said the owners won, including the players.

A dozen years later, the owner were crying that the deal was unfair and killing them. You never know how things will play out. And you can bet in 10 years, when this deal formally ends, there will be owners saying what a bad deal this is for them and how it is killing them. Even if the fault is their own management.

Why a deal now? Pressure from the calendar, mostly

NBA And Players Representatives Meet To Discuss Possible Settlement

After two years of negotiations, after 149 days of NBA lockout, after so many marathon negotiating sessions that we all lost track, the NBA reached a deal about 3 a.m. Saturday morning.

That’s great news, we were all sick of taking BRI and escrow and luxury taxes.

But after all that, why now?

Because the calendar became the real pressure.

That’s not what the sides were saying afterwards.

“The reason for the settlement is the fans, the players who would like to play, we’ve got others who are dependent on us,” said NBA Commissioner David Stern. “Our goal was to reach a deal that was fair to both sides and got us playing as soon as possible.”

“Rather than pursue this in court, it was in both of our interests to compromise,” said Billy Hunter of the NBA players association.

But this was more about the pressure of the calendar making it time to get a deal done.

Both sides had said from the start that they understood the momentum the league gained last season, with television ratings the highest they had been since the Jordan era as just one sign of that. There was a real energy to build off of — and to grow revenues.

And for a lot of more casual basketball fans, Christmas is when they start following the league. Christmas is the first day of national broadcast network games — it was like a second opening day with marquee matchups on a huge stage. Missing that was going to be a real blow.

Sources on both sides told us the pressure was really mounting to get a deal done. The players did not want to lose a season of salary ($2.2 billion), the owners did not want to lose a season of revenue (at a greatly increased rate from the last labor deal). Neither side wanted to deal with the damage of a complete lost season, or even most of one. Fans were clearly getting more and more restless and turning away.

What is the point of fighting over how to divide up the revenue pie if the pie itself gets smaller?

A sign of that pressure from the calendar was the fact cooler heads finally prevailed in these talks. Saturday the talks almost blew up again when players attorney Jeffrey Kessler — David Stern’s nemisis in these talks — was on a conference call and said the players demanded 51 percent of the revenues. Stern and Spurs owner Peter Holt rejected the idea fast. In the past, that might have ended the talks, but this time they stayed in the room and pounded out a deal.

With all that pressure, and a foundation laid by those months of negotiations, they reached a deal. A deal neither side really likes, which is how a good compromise turns out.

But getting it done was more about the timing than anything else.

NBA owners, players reach tentative deal, games to begin Dec. 25

Billy Hunter David Stern

Finally, we are going to have NBA basketball again.

After more than 15 hours of negotiations Friday into Saturday morning (following a week of secretive talks), the NBA owners and players have reached a handshake deal on a new collective bargaining agreement the sides announced. (Ken Berger at CBSSports.com broke the story.)

“We’ve reached a tentative understanding,” said NBA commissioner David Stern at a hastily put together 3:30 a.m. press conference. “(The deal) is subject to a variety of approvals and very complex machinations. We’re optimistic that will all come to pass and the NBA season will begin Dec. 25.”

That will be a Christmas Day start with a triple-header followed by a 66-game season, providing both the owners and players ratify this deal.

There are a lot of details still to be worked out — first up are all the “B” list issues such as draft age and drug testing, things the sides do not all agree on but are not serious enough to block a deal. Then the players’ union has to be reformed (remember they dissolved to allow for antitrust lawsuits to be filed) and finally the owners and players will have to vote on a final version of the agreement.

All of that is going to take 10 days to two weeks. The lockout will not officially be over until then.

Training camps and a free agency period will begin simultaneously on Dec. 9, Stern said.

At that press conference neither Stern nor NBPA director Billy Hunter were willing to talk about a lot of details of the agreement because neither had spoken to their entire constituency yet. However, this deal is likely close to the last offer from the owners and Stern to the players. There may have been a little movement, but not a lot from the offer the players rejected less than two weeks ago.

The players got a little more than 50 percent of league revenue (BRI) but not 51 percent, according to Chris Broussard of ESPN. It is apparently going to be a band in the 49-51 percent range, but will essentially fall as 50/50. In the previous labor deal the players got 57 percent of the league revenue and that was ultimately the big issue in these talks — the owners say they were losing money and wanted a bigger cut of the more than $4 billion in annual revenue the NBA generates. With this they should about cover the $300 million the owners claim to have lost last year.

Talks Saturday took a turn towards blowing up again when players attorney Jeffrey Kessler — the real pit bull for the union — was on a conference call with the talks and said the players demanded 51 percent of the revenues. There was a feeling that might blow the whole talks up, but cooler heads prevailed.

One thing the deal will do is prevent larger-market, big-spending teams from competing in the free agent market as they had in the past, said NBA deputy commissioner Adam Silver. Again there were no details but with a stronger luxury tax and other punitive measures it will be hard for teams to spend up to and around $90 million a season. The deal also raises the salary floor — those small market teams need to spend up to 85 percent of the cap the first two years and 90 percent after that.

This would be a 10-year deal where both sides can opt out at year six.

Neither side loves this deal, which is how a good compromise should end. There are owners and players that will vote against it, but it is expected a majority of both will pass it.

In the end, Spurs owner Peter Holt summed it up best:

“We want to play basketball. Let’s go play basketball.”