Tag: NBA Collective Bargaining Agreement

Derrick Williams

Video: Talking rookie of the year with Chris Sheridan

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Chris Sheridan of Sheridanhoops.com and I were on NBC SportsTalk (6 p.m. Eastern every day on Versus, but I don’t need to tell you that) and the twitter question of the day was about Rookie of the Year. Personally, I’m putting my money on Derrick Williams (an athlete who can finish running the floor next to Ricky Rubio) but Sheridan had an interesting response that might interest Knicks fans.

Also, below we talk and debate the CBA a little, who won and who lost, plus some of the effects of it. Which are a tad hard to predict right now.

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Billy Hunter outlines labor deal, steps remaining in memo

NBPA Meet To Discuss Current CBA Offer
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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.

NBA “stretch provision” may mean more bad contracts

Kris Humphries
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We kind of refer to this as the Eddy Curry Rule.

In the NBA labor deal is what is called the “stretch provision,” which will help teams get rid of underperforming players on big deals. It can only be used on new contracts but here is how it works: If you want to get rid of a player you can buy him out then stretch out his contract on your books for double the length of the deal plus one year. For example, if a player is owed $20 million over two seasons and he gets waived, the team can stretch him out so his deal so on the official salary cap ledger he only costs them $4 million a season for five seasons.

But that is going to lead to some funky bidding, suggests Chris Sheridan at Sheridanhoops.com. He uses the upcoming free agency of Kris Humphries as an example.

Team A is willing to give Humphries a three-year contract starting at $8 million. With 4.5 percent annual raises, Hump would have an offer of $25.08 million sitting on the table.

But Team B really needs someone to do the dirty work under the boards. So they make Humphries the same offer but with a fourth year added on, fully guaranteed at $9.08 million. Now, Hump is looking at a $34.16 million deal. Which one do you think he’s going to take? Team B’s, of course.

Then, after three years, if Humphries is a $9 million burden on Team B’s 2014-15 cap, they can waive him using the stretch exception, and he will count against the cap for only $3 million per season over the next three seasons.

Teams are going to figure out how to game the system, and this is one way it will happen. And it is easier for larger market teams to have a few of those bought out, stretched out deals (and replace them with new, productive players) than it will be for smaller market teams that can’t go into the luxury tax realm as easily.

With things like the stretch provision and shorter contracts, teams can make the bad decisions of their GMs go away more quickly. The thing is, it leaves those same GMs with more decisions to make — there will be more roster turnover every season and more player personnel moves to be made. For bad GMs that means more chances to screw up, for the best GMs it means more chances to shine. As it was before, good drafting and management will be what wins in the NBA.

Don’t expect many amnesty clause players this season

Arenas magic

Finally, thanks to an amnesty clause in the new labor deal, every NBA team can wipe one bad contract off their books and never have to deal with it again. A “get out of jail free” card for NBA GMs. We like to call it the Gilbert Arenas rule. That should lead to a flood of players kicked to the curb, right? RIGHT?

Wrong. More like a trickle.

Because teams have a few years to use it (so long as the player is on the roster pre-lockout they can use it whenever), most teams are putting the amnesty card in their back pocket, reports Howard Beck at the New York Times.

“I don’t think there will be very many at all,” said one team executive, who asked to remain anonymous while the lockout remains in effect.

At most, three to six teams will take advantage of the amnesty clause this year, the executive said — a view that was echoed by others around the league. The reasons are varied and complicated.

Some teams are so far above the cap that removing one player will not provide room to sign free agents. A few teams have such low payrolls that they would dip below the minimum-payroll requirements. At least 10 teams have no obvious candidates for amnesty.

We call it the Gilbert Arenas rule, although the Magic could use it on Hedo Turkoglu and we’d understand. (Remember in all cases the player still gets paid his full contract, it just comes off salary cap and luxury tax numbers.) But that is the exception of having an obvious target to amnesty.

A more typical case might be the Los Angeles Lakers. Sure, they would like to trim some of the $93 million they have in salary next season and to amnesty a player is one way. They could use it on Luke Walton, but he comes off the books the same year the tax goes up so you only really get a short-term boost letting him go. They could let Metta World Peace (Ron Artest) go, he is owed three years and $18.8 million. But wouldn’t the Lakers be better off trying to win with him for another year and then losing him next season (or the season after when the tax goes up)? The Lakers are way over the cap and the luxury tax line, who are they going to pick up that is better than World Peace to fill that role?

Most GMs don’t have an obvious hand to play, so they may sit on their cards and see how things play out. They know when to hold ‘em.

Of course, if they hadn’t given out these contracts in the first place….

Winderman: Chris Paul rumors show why Hornets need owner fast

Chris Paul, Carmelo Anthony

Since the NBA last bounced a ball, one team has changed hands (Philadelphia) and another was sold only to have that deal fall apart (Atlanta).

All the while, a franchise that might have as great an impact as any in reshaping the league remains in the hands of the league (New Orleans).

While the NBA clearly had greater priorities these past five months, it is time to get the Hornets back into the ownership game. The longer the league continues to operate the Hornets, the longer the stench of the lockout will remain.


Here’s why: The terms of the soon-to-be-ratified collective-bargaining agreement still allow impending free agents to be dealt and signed to extensions. The Carmelo Rule did not make the final CBA cut.

So while he is saying all the right things right now, we’re at the starting line when it comes to Chris Paul being in position to force the Hornets’ hands.

Already, in these mere hours since the resolution of the lockout, the New York tabloids have been all over the Paul-to-Knicks angle (one that has validity considering the cap space the Knicks can amass for the 2012 offseason, when Paul has an opt-out).

The Heat also are believed to be willing to kick the Paul tires, if only to appease Paul summer running mates LeBron James and Dwyane Wade.

And that’s where it gets sticky.

How can an NBA that stressed parity, parity, parity (Adam Silver apparently now has it tattooed on his bicep), allow itself to be in a position where the two teams that helped destroy the notion of parity in 2010-11 could be negotiating with it for one of the prime prizes of 2012 free agency (along with Dwight Howard)?

The Hornets need to be sold off . . . yesterday.

Such a deal might yet be forthcoming, although it’s not as if it couldn’t have transpired during the lockout, as evidenced by the machinations with the 76ers and Hawks.

But even the mere notion of the league, as de facto owner of the Hornets, negotiating with the Knicks regarding Paul would be an affront to all the small-market teams who put their faith in David Stern and Silver.

For now, Paul said he is not thinking about a possible sign-and-extend package, that his priority is to get settled back in New Orleans. Through all that franchise has endured, he has been the good soldier, from the recovery work to his charitable efforts. The All-Star point guard is viewed as one of the league’s good guys.

But as the league witnessed last season with Carmelo, these will-he-or-won’t-he stories get old in a hurry. If nothing else, the Nuggets deserve credit for acting swiftly and decisively with Anthony.

Now the Magic (with Howard) and the Hornets (with Paul) will have to do the same in coming weeks.

The difference is the Magic only have to move in their own best interests. There is no secondary agent there.

But as long as the NBA continues to operate the Hornets, the Chris Paul saga will remain as much about what is in the best interest of the league as what is in the best interest of the Hornets going forward.

Ira Winderman writes regularly for NBCSports.com and covers the Heat and the NBA for the South Florida Sun-Sentinel. You can follow him on Twitter at http://twitter.com/IraHeatBeat.