Age limit, bigger cap, shorter contracts p …
http://sports.espn.go.com/nba/news/story?id=2091116
‧ A 19-year-old age limit would be implemented. Players who are not 19 by
draft night would be ineligible to declare. Under current rules, American
players are eligible for the draft the year their high school class
graduates. Foreign players must be 18 by draft night. The new proposed
age limit would bar most, but not all (Amare Stoudemire was already 19
when he was drafted), high school players from entering the draft.
‧ Contract lengths would be reduced by one year. Currently, players can sign
a fully guaranteed contract for a maximum of seven years if they re-sign
with their current team. Players signing with a new team in free agency
can sign a six-year deal. Under the new proposal, maxiumum contract
lengths would shorten to five years for players signing with new teams and
six years for players re-signing with their current team.
‧ Raises in contracts would be reduced. Under the current CBA, players are
allowed maximum raises of 12.5 percent per year if they re-sign with their
current team and 10 percent if they sign with a different team in free
agency. Under the new proposal, raises would be reduced to 10 percent if a
player re-signs with his current team and 8 percent if they sign with a
different team in free agency.
‧ Teams would pick up an extra option year on rookie contracts. Currently,
first-round picks are tied into a league salary scale. When a first-round
pick signs a contract, the first three years are guaranteed, with a team
option for the fourth year. Players are paid a set amount based on where
they were selected in the draft. Under the new proposed rules, first-round
picks would get the first two years of their contract guaranteed. The third
and fourth years of the contract would be team options.
In return the owners would make the following concessions to the players if
the current proposal is ratified:
‧ Total player salaries would be guaranteed. The proposed agreement guarantees
that players receive a minimum of 57 percent of basketball-related income
(BRI) in the form of salaries each year.
‧ The salary cap would increase. The current CBA bases the salary cap on BRI.
The cap is set at 48 percent of BRI; last year, that came to $43.87 million.
According to sources, the owners would agree to increase that percentage to
51 percent, in effect raising the salary cap. Sources say the cap would,
in that case, rise to between $47 million and $50 million next season.
‧ Escrow would be reduced and distribution of escrow moneys modified.
Currently, players must pay 10 percent of their salaries into an escrow
account each season. If, at season's end, the total amount of player
salaries exceeds 57 percent of the league's total basketball-related income,
that money goes to the owners whose teams stay below the luxury-tax
threshold (and a few that fall within a certain "cliff threshold"). If it
doesn't exceed 57 percent, the players get their money back. Under the
proposed agreement, that number would be slowly fazed down to 8 percent by
the end of the agreement.
There is potentially another significant development in this area. Under
current rules, the NBA has sole discretion over the use of the escrow money.
Currently, it redistributes the cash (and luxury tax revenues) to teams that
are under the luxury tax threshold. In essence, Clippers owner
Donald Sterling gets a bonus for being cheap. Under the new proposed
agreement, distribution rules would be changed so that luxury tax revenues
would now be distributed equally among all 30 teams.
‧ No super luxury tax. Owners had been pushing for a "super tax" for teams who
exceed the salary cap by more than a certain percentage. They would be
penalized $2 for every dollar they were over the tax threshold. However,
the owners dropped their demand for a super tax under the newest proposal.
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