Tag: NBA Collective Bargaining Agreement

Miami Heat v Chicago Bulls - Game Five

New “Derrick Rose Rule” will make a few rookies rich(er)


Players on their rookie deals remain one of the great values to owners — they get players who often can contribute a lot but at a fraction of the salary of a veteran who does the same thing. Those rookie deals remain untouched in the new collective bargaining agreement.

Except for one change — if you are an elite player you can make more in your second deal than your peers. And by “elite” we mean Derrick Rose.

Let us explain. Part of the new labor deal will allow rookies getting their second contract — which starts with their fifth season — to earn the new max of up to 30 percent of the salary cap (up from 25 percent). To qualify for the bump all they need to do is win an MVP award, get voted into the All-Star Game as a starter two times or twice in their first four seasons or get named to any level of the All-NBA teams in those four seasons, Tom Ziller points out at SBN.

The difference is about $3 million more a season.

To the joy of Jerry Reinsdorf, only Rose qualifies right now, Ziller reports.

However, if Russell Westbrook makes an All-NBA team this season he can as well (he will be offered a max extension by the Thunder on Dec. 9 and this super-max possibility will likely be written into the deal — which if he reaches it means he will make more than Kevin Durant). Kevin Love would need to win the MVP to qualify, Ziller says.

So, call this the Derrick Rose rule. But it is fair to pay guys who are franchise cornerstones a little more.

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.

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

NBPA Meet To Discuss Current CBA Offer
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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.