Tag: NBA lockout

NBA Labor Basketball

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


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.

Heat, Knicks may be big winners in last minute deal changes

NBA Finals Heat Mavericks Basketball

Part of the motivation for the hardline owners during the NBA lockout was to never let what happened with LeBron James going to Miami to ever happen again. To never let what Carmelo Anthony did to the Nuggets ever happen again (they lost the ‘Melo part of the fight). Small market owners didn’t like players banding together to go to a better market and win together and they couldn’t stop it.

Except, in the system concessions made in the last 48 hours the Heat and Knicks may be the biggest winners.

The way the rules are set up those two teams are in good position to bring in mid-level players and some depth to put around their stars that could put them over the top.

Brian Windhorst broke down the Heat case at ESPN.

The biggest move was owners allowing teams that are not more than $4 million over the luxury tax line to use the full mid-level exception of $5 million, according to multiple reports. That $4 million window makes a world of difference for the Heat and should allow them to:

• Use the entire $5 million mid-level exception in free agency without having to use the amnesty clause on Mike Miller to waive him and get his contract off the books.

• Use the entire mid-level exception on a free agent and still be able re-sign restricted free agent Mario Chalmers and rookie point guard Norris Cole.

Mike Miller could still be let go by the Heat, but if they think he could contribute they no longer have to get rid of him to clear the way for others. It will depend on his recovery from thumb and knee injuries. But they have $67 million on the books and options now.

The Knicks have $7 million less on the books for next season than the Heat, meaning they can bring in a mid-level player to go around Anthony and Amare Stoudemire plus use a second exception to get a guy. They can use the $14.2 million deal of Chauncey Billups (in its last year) as the base for an offer to try and get Chris Paul or Dwight Howard and if it works they still might be able to get a mid-level player again next season.

Even teams like the Lakers and Mavericks — teams with owners willing to spend and in a “win now” mode due to a core that only has a few more years in their championship window — also may benefit in the short term. It will cost them more in tax, but they can go get a mid-level exception guy, the kind of role players they need around their stars.

Over time, the goal of this labor deal will be to flatten out the payroll disparity in the league — teams have to spend up to $49 million next season and $90 million payroll will be almost impossible due to the tax structure. (One should not confuse that with parity or competitive balance, the owners like to tell you those things go hand-in-hand but they do not.)

But in the short term two teams who need good role players to go around their stars may have been the biggest winners in the last 48 hours.

Video: David Stern, Billy Hunter talk NBA labor deal

NBA And Players Representatives Meet To Discuss Possible Settlement
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In case you were not one of us up at 3 a.m. (Eastern, there are advantages to my West Coast perch some days) here is the video of David Stern and Billy Hunter talking about the tentative NBA labor deal early Saturday morning when it was announced.

Both are lawyers and both choose their words carefully here, but know that they will get this deal passed — the only thing more damaging to the NBA than that lockout would be to have a deal to start games on Christmas fall through and for the lockout to start up again. This will get approved, not unanimously on either side, but approved.

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.

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.