NBA CBA vs the Players Offer

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Egil

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Mar 6, 2002
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Soft Salary cap of 48.04% of league revenue. The NHLPA proposal has nothing of the sort. As we all know, the NBA cap has the Larry Bird exemptions (good for keeping your players), and various exemptions to allow teams to sign a player in the offseason. This COULD be applied in the NHL, with the afformentioned exemption to keep your own players.

10% Escrow on all player salaries. This is used to pay the owners if player salaries exceed 55% of league revenue. As long as player salaries stays below 61.1% of league revenue, the owners are GUARANTEED to pay at most 55% of revenue to player salaries. The NHLPA proposal has NONE of this.

Individual Salary Caps. A player, based on years of service, has a maximum salary set out in the CBA. This is done to ensure that a few players don't take ALL the money, leaving the bench warmers with nothing. The NHLPA proposal has NONE of this.

Luxury Tax. The NBA CBA has a 100% Tax triggered if player salaries exceed 61.1% of league revenue, payable by teams whose payrolls exceed the teams share of 61.1% of league revenue. There is NO TAX is player salaries are below this level. I also suspect that this is what the NBA owners are circiling the wagons on, and I expect to see the luxury tax triggered slightly lower, as opposed to only once the escrow fund is no longer sufficient.

Using a 2.1 Billion dollar figure for league revenue, the NHLPA offer has a 20-30% tax on payroll over 64.3% of league revenue, a 50-60% tax on payroll over 71.4% of league revenue and a 60-70% tax on payroll over 85.7% of league revenue. As you can see, this isn't even CLOSE to the tax that is levied in the NBA, neither in the amount of tax paid, nor in the level at which the tax is paid.

Also of note, based on the Unions rhetoric, they would reject the NBA proposal as it contains a linkage between player salaries and revenue.
 

Trottier

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TonySCV said:
There are elements of both the NBA and NFL CBA's that can be used to benefit the NHL.

Amen! :handclap:

Been saying as much for two years. And, the ironic thing is, all the elements for such a compromised solution are out on the table now, brought there by the two sides.

Ultimately, that is what will happen, IMO.
 

Motown Beatdown

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Buffaloed said:
Is there anything in the NBA proposal regarding contract buyouts?


Here you go,

52. Do released players count against the cap?
Released (waived) players with guaranteed contracts continue to be included in the team salary. Players whose contracts are not guaranteed, including training camp invitees who do not make the opening day roster, are included in team salary in the amount they made while they were with the team.

If another team signs a released player who had a guaranteed contract (as long as the player has cleared waivers -- see question number 53 ), the player's original team is allowed to reduce the amount of money they still owe the player (and lower their team salary) by a commensurate amount (this is called the right of set-off). This is true if the player signs with any professional team -- it doesn't even have to be an NBA team. The amount the original team gets to set off is limited to one-half the difference between the player's new salary and the minimum salary for a one-year veteran (if the player is a rookie, then the rookie minimum is used instead).


For example, suppose a fifth-year player is waived during the 2003 offseason, with one guaranteed season remaining on his contract. If this player signs a $1 million contract with another NBA team for the 03-04 season, his original team gets to set off $1 million minus $563,679 (the minimum for a one-year veteran in 03-04), divided by two, or $218,160.50. If this player had a $5 million salary with his prior team, then his prior team would be responsible for the remaining $4,781,839.50. Note that between his prior team and new team the player will earn a combined $5,781,839.50, which was more than he made prior to being waived.


There was some controversy about what happens to player options (see question number 48 ) if the player is released before the option can be exercised. Newer contracts contain specific language that details exactly what happens to option years when a player is waived. But older contracts still exist which are ambiguous about this point. For example, it was rumored that the Heat would waive Anthony Carter (whose contract contains the older, ambiguous language) in 2003, before Carter could exercise his option for the 03-04 season. Any such action would likely be greived, but so far every team that has found itself in this situation has instead agreed to a buyout with the player, so this situation has yet to be tested.

http://members.cox.net/lmcoon/salarycap.htm#32
 

Buffaloed

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That doesn't really address buyouts. What I'm looking for is whether the NBA proposed CBA contains specific buyout terms and how that's applied to the cap.
 

thinkwild

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Jul 29, 2003
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Everytime I try to read the NBA CBA, my brain hurts. Surely thats a goal of Bettmans - make the CBA so incomprehensible that fans will never be sure enough of how its working to be able to call out management for bad business decisions in the management of their team.
 

s7ark

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thinkwild said:
Everytime I try to read the NBA CBA, my brain hurts. Surely thats a goal of Bettmans - make the CBA so incomprehensible that fans will never be sure enough of how its working to be able to call out management for bad business decisions in the management of their team.


What that doesn't even make logical sense. It the CBA is too incomprehensible then teams can't use it as an excuse for poor performance to the public. Then it becomes all about the success of the team.
 

John Flyers Fan

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Buffaloed said:
That doesn't really address buyouts. What I'm looking for is whether the NBA proposed CBA contains specific buyout terms and how that's applied to the cap.

No the NBA has nothing regarding buyouts. You either pay the entire amount, or you negotiate an amount with the player. It does not effect your salary cap status, as you can pay your player over and above the salary cap.

IMO the NHL would sign the NBA CBA tomorrow, and I wrote that to Bob McKenzie earlier today, his response:

John, you may be right. The PA might, and I say might, agree to an NBA style system but for the very reasons you outlined -- teams like Portland going $40 million over the cap -- the NHL would want it tightened up significantly. If not a hard cap, an even more punitive tax system than the NBA's, which doesn't appear to doing what it was intended to do. That's obviously the middle ground in this thing -- that is, an NBA style system with a little more teeth. Not sure we get there, though.


26 of the 29 teams in the NBA are over the soft cap, and approx. 14 of the 29 also pay the NBA's luxury tax.
 

GKJ

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Feb 27, 2002
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Just so everyone knows the NBA CBA is going to hell after this season because it expires and they're going to have a lockout too
 

LazRNN

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The NBA system has its problems, but the cap exemptions are all very reasonable and functional. The reason why salaries have spun out of control again is because of the RFA system. In the NBA an RFA can sign an offer sheet with any team with enough cap space, or perhaps with the mid level exception. Then his team has 15 days to decide whether or not to match that offer. If they do, he is signed to his current team under the terms of the offer sheet, and if they don’t he is signed to the team that he signed the offer for. There is no other form of compensation, like the draft picks that the NHL currently has. As a result many more RFAs get signed to offer sheets in the NBA. The teams signing RFAs to offer sheets want the players current team to not match the contract, so they’ll usually sign the player to an offer that is just beyond what they expect the other team would pay to keep him. As a result, these players wind up being overpaid. If the NHL kept its current system with the compensatory draft picks, there would be no increase in RFA offer sheets.

The other thing the NHL could tweak is the “Bird†exemption. In the NBA, any team with a player under contract for three years or more has his “Bird†rights which allows them to go over the cap to sign him, and in fact that team can offer the player more money than any other team. If a player is traded, the team he is getting traded to acquires his Bird rights, even if he is traded right before his current contract expires. The NHL could tweak that so that the player will have had to serve at least a full season of the contract under his current team before that team acquires the rights to sign him to the most amount of money.

The NBA system is not perfect, but its basic concepts are superior to the hard cap concept that Bettman is pushing. A hard cap causes too many unnecessary problems… I’m not even talking from the players POV here… I’m talking about from a team building POV. The NBA may lock out it’s players to start next season, but no way will it last long. Say what you will about the NBA, they have a competent commissioner and competent owners who actually can run a business without driving it to the brink of death.
 
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