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View Full Version : ITT: You explain the NBA collective bargaining agreement to me



zbrewha863
07-15-2010, 03:57 AM
All I know is that some time soon there is supposed to be a new NBA collective bargaining agreement between the owners and the Player's Association. Someone on ESPN brought it up briefly in the LeBron thing, saying that players won't be making as much money after the new collective bargaining agreement.

So what's the deal? Is something finalized? What does it mean for the NBA? What kind of pay cuts are they looking at?

FWIW, I think NBA players are grossly overpaid, even by professional sports standards. I think someone like LeBron or Kobe might genuinely be worth what they make (in terms of revenue they bring in, jersey sales, etc.), but the vast majority of players don't deserve what they make.

mrbaker3
07-15-2010, 05:56 AM
I can't explain the entire deal. Search Wikipedia for the best explanation. I tried looking there under NBA Salary Cap... but it's so damned confusing.

Essentially it boils down to a few key things:

There is a SOFT salary cap on teams. This means they can't spend a certain amount per year on players, but there are so many "exceptions" that allow teams to go over. Exceptions for things such as veteran players, trades, etc.

What this means for players, is that they want the salary cap to be as high as possible, so the players can make as much as possible per year.

LeBron, Wade, and Bosh are talking about making less money directly because of this salary cap. Miami has to make their roster work and still stay under the cap.

The funny thing is, there are so many teams out there under the cap, so you're seeing all these crazy deals for mid-level players, just because some teams have extra money to spend.

However I completely disagree with you about NBA players being overpaid, when compared to other pro sports. IMO, baseball is the worst, simply because there is no salary cap.

In the coming months, you'll hear more and more talks about a new Collective Bargaining Agreement, because the current one is set to expire after this upcoming season. If they don't come up with a new one, there will be a lockout. However, after the NHL debacle recently, I personally believe that somehow, someway, they won't let that happen.

JBDW
07-15-2010, 06:13 AM
Here's a decent website that explains it in some detail:

http://members.cox.net/lmcoon/salarycap.htm#Q4

AriGhold
07-15-2010, 06:22 AM
I can't explain the entire deal. Search Wikipedia for the best explanation. I tried looking there under NBA Salary Cap... but it's so damned confusing.

Essentially it boils down to a few key things:

There is a SOFT salary cap on teams. This means they can't spend a certain amount per year on players, but there are so many "exceptions" that allow teams to go over. Exceptions for things such as veteran players, trades, etc.

What this means for players, is that they want the salary cap to be as high as possible, so the players can make as much as possible per year.

LeBron, Wade, and Bosh are talking about making less money directly because of this salary cap. Miami has to make their roster work and still stay under the cap.

The funny thing is, there are so many teams out there under the cap, so you're seeing all these crazy deals for mid-level players, just because some teams have extra money to spend.

However I completely disagree with you about NBA players being overpaid, when compared to other pro sports. IMO, baseball is the worst, simply because there is no salary cap.

In the coming months, you'll hear more and more talks about a new Collective Bargaining Agreement, because the current one is set to expire after this upcoming season. If they don't come up with a new one, there will be a lockout. However, after the NHL debacle recently, I personally believe that somehow, someway, they won't let that happen.

nba players make just as much money as baseball players do. the difference in salary comes from double the roster size. the highest paid baseball players are pretty much on par with the highest paid nba players. baseball players play twice as many games in stadiums that seat twice as many fans, though.

The_Sho
07-15-2010, 06:24 AM
Basically the owners are idiots for spending all this money right now on bench players/role player...cuz after this season, the players will have no choice but to accept less money from here on out if they want to play in 2011-2012 and not have a lockout...thats the main issue: how much these guys are making...also the owners want to be able to cut a player a la the NFL if a player is not living up to their contract...

zbrewha863
07-15-2010, 09:26 AM
Yeah I understand that the Miami 3 are all taking less money to play together.

What they were saying is that this was the year to make deals though, because say LeBron signed a 2-year deal -- after the new collective bargaining agreement is in place, at the end of that deal he's not going to be able to make the money he could get this year in the free agent market.

zbrewha863
07-15-2010, 09:27 AM
nba players make just as much money as baseball players do. the difference in salary comes from double the roster size. the highest paid baseball players are pretty much on par with the highest paid nba players. baseball players play twice as many games in stadiums that seat twice as many fans, though.

Repped - this is what I was saying. For the amount of work they do and the amount of ticket sales they generate, they are way overpaid.

JBDW
07-15-2010, 09:31 AM
Yeah I understand that the Miami 3 are all taking less money to play together.

Wait, what? Bosh and Lebron both signed for about 107/6, how is that taking less money to play together? It might not be Joe Johnson ridiculous, but it's still a ****load of money.


What they were saying is that this was the year to make deals though, because say LeBron signed a 2-year deal -- after the new collective bargaining agreement is in place, at the end of that deal he's not going to be able to make the money he could get this year in the free agent market.

Because the new CBA is in all likelihood going to result in a lower max contract level. At least, owners are going to be demanding this. That's why all the players are freaking this offseason.

mrbaker3
07-15-2010, 09:34 AM
Wait, what? Bosh and Lebron both signed for about 107/6, how is that taking less money to play together? It might not be Joe Johnson ridiculous, but it's still a ****load of money.



Because the new CBA is in all likelihood going to result in a lower max contract level. At least, owners are going to be demanding this. That's why all the players are freaking this offseason.

New CBA? It won't be that way if the player's have any say over it:

http://sports.espn.go.com/nba/news/story?id=5380427

JBDW
07-15-2010, 09:45 AM
New CBA? It won't be that way if the player's have any say over it:

http://sports.espn.go.com/nba/news/story?id=5380427

Clearly. I don't know which direction the CBA is going to go as of right now, and I don't think anyone else does either. But the chances of it going against the players is high enough that they're all scrambling to sign contracts now, which is what the other guy was asking about.

cor030
07-15-2010, 09:47 AM
is it like the NFL where the salary cap is removed if they don't come to an agreement?

BladeRun
07-15-2010, 10:32 AM
Wait, what? Bosh and Lebron both signed for about 107/6, how is that taking less money to play together? It might not be Joe Johnson ridiculous, but it's still a ****load of money.



They were allowed $130M under the sign and trades they came in with.

Count on the CBA changing, though it will be minor reductions at most. NBA strategy: Scare a bunch of young rich athletes with no ability to manage their money with massive reductions in salary...negotiate minor cuts & those rich athletes will come out thinking they got the better end of the deal.

PHX04
07-15-2010, 01:31 PM
if players mad max 10 million 5.5 total after tax.. then the Owner's would be rolling in $$ then we would hate them even more..... i heard somewhere that players get like 57% of the teams money...

Parlor_Mob
07-15-2010, 01:53 PM
If a team like the Magic are over the luxury tax, where does that extra money go to? Does the NBA use this money to help out the smaller market teams?

bking10
07-15-2010, 02:04 PM
is it like the NFL where the salary cap is removed if they don't come to an agreement?

the uncapped year was actually in the NFL's agreement if the owners opted out of their CBA. so the NBA will just go into a lockout until a new one is reached. same with the NFL if a new CBA isnt reached by the end of this season

expect the NBA owners to come out on top. they are better able to withstand work stoppages than players. im expecting some sort of hard cap or less guaranteed years in contracts (ex. only 1st 3 years of 6 year deal). which is why players are signing such long term deals right now.

JBDW
07-15-2010, 07:06 PM
If a team like the Magic are over the luxury tax, where does that extra money go to? Does the NBA use this money to help out the smaller market teams?

First a fraction of the money goes to the teams that are under the luxury tax. Subsequently, the money is used by the league for 'league purposes', and then any remaining money is distributed among all the teams in the league equally.


the uncapped year was actually in the NFL's agreement if the owners opted out of their CBA. so the NBA will just go into a lockout until a new one is reached. same with the NFL if a new CBA isnt reached by the end of this season

expect the NBA owners to come out on top. they are better able to withstand work stoppages than players. im expecting some sort of hard cap or less guaranteed years in contracts (ex. only 1st 3 years of 6 year deal). which is why players are signing such long term deals right now.

Good point. I don't think a hard cap is going to happen, but the less guaranteed years part is a possibility. Honestly, if I were owners, I would be angling for non-guaranteed contracts for players in the first round of the draft, given what a crapshoot it tends to be.

Docta
07-15-2010, 07:09 PM
If a team like the Magic are over the luxury tax, where does that extra money go to? Does the NBA use this money to help out the smaller market teams?
Each team under the cap gets 1/30 of the money, and whatever is left over is spread equally to the rest of the teams.

JBDW
07-15-2010, 07:13 PM
Each team under the cap gets 1/30 of the money, and whatever is left over is spread equally to the rest of the teams.

Not quite, you missed out an intermediate step. Close though.