New contracts
⢠2005 CBA: Six years with 10.5 percent raises for Bird free agents; five years with 8 percent raises for other players. Maximum salaries are approximately 25, 30 or 35 percent of the salary cap, depending on the player's years of service.
⢠2011 CBA: 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. Minimum and rookie scale salaries are frozen near their 2010-11 levels until revenues rise enough that the reduction is proportional to the 12 percent reduction in the overall system.
⢠Who benefits? These changes provide the league with more cost control. The exception is the higher maximum salary for fifth-year players who meet certain league honors (MVP, an all-NBA team member twice, or an All-Star twice), which lets young superstars (think Derrick Rose) cash in with a bigger contract sooner.
The higher maximum salary for fifth-year players can also benefit teams. In 2006 LeBron James, Dwyane Wade and Chris Bosh all signed shorter extensions (which allowed them to become free agents in three years) rather than signing on for the maximum five years. The three players timed their free agency to follow their seventh season in the league, when they became eligible for the 30 percent maximum. Allowing franchise players such as these to sign for the higher maximum sooner reduces the temptation for these players to sign shorter contracts, delaying their eventual free agency.
Contract extensions
⢠2005 CBA: 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.
⢠2011 CBA: 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. The extension in an extend-and-trade contract is limited to three total seasons, which includes the seasons remaining on the current contract.
⢠Who benefits? The teams benefit here, just as they do with shorter free-agent contracts -- teams' future salary commitments are reduced. In addition, limiting extend-and-trade contracts to three seasons (including the seasons remaining on the player's current contract) helps reduce situations like the one the Nuggets were in last season with Carmelo Anthony.
Midlevel exception
⢠2005 CBA: Five years starting at the average salary ($5.765 million in 2010-11), with 8 percent raises.
⢠2011 CBA: For non-taxpaying teams, four years starting at $5 million (base salary grows by 3 percent annually beginning in 2013-14), with 4.5 percent raises. 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).
⢠Who benefits? Very few full midlevel contracts handed out under the 2005 CBA turned out to be good bargains in their later years. Reducing the size and length of the midlevel exception will help teams rid themselves of bad contracts.
The new exception for teams with cap room will benefit teams that clear cap room to sign free agents. For example, in the summer of 2010 Miami gutted its roster in order to obtain James and Bosh. This left the Heat with a small amount of cap room to sign players like Mike Miller. But once they reached the salary cap, they could offer only minimum-salary contracts. Under the new CBA, once they reach the cap, they could still offer one or more players a total of $2.5 million.
Disabled player exception
⢠2005 CBA: Five years, starting at the lesser of half the replaced player's salary or the average salary, with 8 percent raises.
⢠2011 CBA: One year, starting at the lesser of half the replaced player's salary or the non-taxpayer midlevel exception.
⢠Who benefits? This exception provides teams with the ability to sign an emergency replacement for an injured player. Under the previous CBA, the player could be signed to a five-year contract, meaning a permanent replacement could be obtained. This also opened the door to situations where the injured player returned to the team while his replacement was still on the roster. By reducing to one year in the new CBA, this exception will more closely match its intent -- to provide a short-term emergency replacement for an injured player. Teams will now have to fend for themselves if the player's injury keeps him out for more than a year.
Trade rules
⢠2005 CBA: 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.
⢠2011 CBA: 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.
⢠Who benefits? The relaxation of the salary matching requirements will facilitate player movement. The addition of the provision that allows teams to acquire up to 100 percent plus $5 million of the salaries of its traded players will also reduce "trade ballast" -- extra players thrown into a deal merely to make a trade legal. The number of crazy trades should therefore be reduced.
The limitation of cash in trades (to $3 million annually) will have a big effect on draft-pick trades. It is now common for first-round picks to be sold for up to $3 million each prior to the draft. By limiting teams to $3 million annually, these trades will be reduced.
at what DWill & Dwight would be able to do on offense.
