After a 161 day lockout, the owners and players agreed to a deal on the 8th. Due to the length of the lockout free agency and training camp opened on the 9th. Instead of a 82 game schedule, teams will play 66 games. The season will start Dec. 25 and run until the end on April 26. The Finals will end near the end of June. I will compare important parts of the new one the old CBA and give my opinion.
The knew deal is good for ten years. It has a mutual opt-out in 2017 so either the players or owners can opt-out after the 2016-17. The 2005 CBA was a seven year agreement, with a league opt-out in 2011 (which the league used). In the 2005 CBA, Players receive 57% of Basketball Related Income (BRI). In the new deal players receive 51.15 percent of BRI in 2011-12. In later seasons players receive 49 to 51 percent of BRI. 1% of BRI (from the players' share) is used to fund a new pool for post-career benefits. In the old deal escrow was set at 8% withheld to ensure players receive no more than the agreed-to revenue split. If escrow withholding is insufficient, salaries are reduced the following season to compensate. In the new deal escrow will be set at 10 percent withheld in every season. If the escrow withholding is insufficient, the shortfall is taken out of the players' post-career benefits pool. Salaries are not adjusted the following season. The old amnesty provision allowed one player to be waived prior to the start of the 2005-06 season. The salary of the waived player will not count toward the luxury tax. The new deal allows one player to be waived prior to the start of any season (only one player can be amnestied during the agreement, and contracts signed under the new CBA are not eligible). The salary of the waived player will not count toward the salary cap or luxury tax. Teams with cap room can submit competing offers to acquire an amnestied player (at a reduced rate) before he hits free agency and can sign with any team.
Revenue sharing will be greatly improved in the new deal. Revenue sharing will be greatly improved. A new plan approximately triples the amount of money that is revenue-shared. Details of this plan are yet to be finalized. In the old deal some of the undistributed funds from the luxury tax were given to teams in competitively disadvantaged markets. Teams will have to spend 85% of the cap for the next two years and 90% of the cap the later years of the deal. It used to be you would only have to spend 75% of the cap. The old luxury tax, Teams paid $1 for every $1 their salary was above the luxury-tax threshold. In the new deal, teams pay $1 for every $1 their salary is above the luxury-tax threshold in the first twos season. Starting in 2012-13, teams pay an incremental tax that increases with every $5 million above the tax threshold. Teams that are repeat offenders (paying tax at least four out of the past five seasons) have a tax that is higher still. In the new deal there will be Cap holds are reduced for most players who have Bird rights or were first-round picks, and now range from 150 percent to 250 percent. Teams have three days to match an offer sheet to its restricted free agent. The old deal had a cap hold of 150 percent to 300 percent continues to count against the team's cap for its free agents who have Bird rights or were first-round picks. A team has seven days to match an offer sheet to its restricted free agent.
New contracts will be five years with 7.5 percent raises for Bird free agents; four years with 4.5 percent raises for other players (including all sign-and-trade transactions). The maximum salaries are the same as the 2005 CBA, except players coming off their rookie scale contracts qualify for the 30 percent maximum if they meet certain criteria. In the old CBA the contracts were Six years with 10.5 percent raises for Bird free agents; five years with 8 percent raises for other players. Contracts extensions in the new deal will allow players coming off their rookie scale contracts can extend for four additional seasons, although the team can designate one player who is eligible for five seasons at the maximum salary. A team can have only one designated player on its roster at any time. All other veterans can extend for four total seasons, which includes the seasons remaining on their current contract.In the old deal only allowed players coming off their rookie scale contracts can extend for five additional seasons. All other veterans can extend for five total seasons, which includes the seasons remaining on their current contracts.
Midlevel exception will be now four years starting at $5 million (base salary grows by 3 percent annually beginning in 2013-14), with 4.5 percent raises for non-taxpaying teams. Taxpaying teams are limited to three years, a $3 million base salary (which grows by 3 percent annually beginning in 2013-14) and 4.5 percent raises. Teams with cap room (therefore losing their midlevel exception) get a new midlevel that is for two years and starts at $2.5 million (growing 3 percent annually). The old allowed five years starting at the average salary ($5.765 million in 2010-11), with 8 percent raises.
Trade rules now we allow taxpaying teams can acquire no more than 125 percent plus $100,000 of the salaries they trade away (same as 2005 CBA). Non-taxpaying teams (based on their post-trade salary level) can acquire up to the lesser of 150 percent plus $100,000, or 100 percent plus $5 million of the salaries they trade away. The cash a team pays or receives in trade is limited to $3 million annually. The old deal allowed teams over the cap can acquire no more than 125 percent plus $100,000 of the salaries they trade away. A team can receive up to $3 million cash in any trade.
All this will allow will allow the league to be more competitive and function able. Last year only 6 teams made money, but now most teams should be able to make a profit. Also forcing certain amounts team can spend and give players will make the lower tier teams perform better and compete. I hope now we can have 10 year of no labor problems and all the problems the NBA has can be fixed.
No comments:
Post a Comment