AleksandarN
Starter
I thought I would post it here since we are talking about resigning players and going after FA.
http://insider.espn.go.com/nba/columns/story?columnist=ford_chad&id=2062067&action=upsell&appRedirect=http%3a%2f%2finsider.espn.go.com%2fnba%2fcolumns%2fstory%3fcolumnist%3dford_chad%26id%3d2062067
Contract length a deal breaker?
By Chad Ford
Trying to pin down the exact positions of either side in the midst of collective bargaining isn't easy or precise.
Insider has talked to numerous sources on both sides of the negotiation to try to paint the most accurate picture possible of where things stand.
While the negotiations and compromises talked about are really a moving target, here's where we believe they are now:
Age limit
Currently, players are eligible to declare for the NBA draft after their high school senior class graduation if they are from the United States. If they are international players, they must be 18 years old by the night of the draft.
For several years, commissioner David Stern has been vocal in support of an age minimum of 20 for players to be eligible for the draft. Union director Billy Hunter has been just as vocal opposing the limit.
In February, it appeared that the players had warmed to the age-limit idea to the point that several sources believed an age limit would become part of the new collective bargaining agreement. Since then, however, several prominent players have come out and publicly opposed it. Player agents also have been adamant that the union not accept Stern's proposal.
Said one source close to the negotiations, "I think David is the only one left on either side who really wants this to happen."
But that doesn't mean the proposal is dead. The players might be willing to agree to a compromise that sets the age limit at 19, two sources close to the union told Insider.
According to sources, under the current league proposal, high school players would have to wait two years after their high school class graduated before becoming eligible for the NBA draft. International players could not declare for the draft until the age of 20.
The rule likely would go into effect for the 2006 NBA draft.
If an age limit is implemented, it would dilute the draft dramatically for the next several years. If the rule had gone into effect last year, for example, 11 of the first 19 players selected would have been ineligible. Underage players such as LeBron James, Carmelo Anthony, Amare Stoudemire, Chris Bosh and Dwight Howard would've been ineligible for the draft, had the rule been in effect earlier.
It would take several years for the talent pool to restock. By 2008, however, the draft would be stronger, giving teams an extra couple of years of scouting before having to make crucial – and expensive – decisions on players.
The league's main interest in establishing an age limit, however, is economic. With the rare exception of a player such as LeBron, it is difficult to market players who are coming straight from high school. Two years of college publicity gives fans a chance to get to know players before they join the NBA.
"Everything is an economic issue," Stern said in February when asked about an age limit. "I mean that sincerely. Because it affects our business, in terms of our responsibility, the way we are viewed, the players' maturity and how they deal with the community.
"On a broader sense, everything we are talking about, even though it may turn out to be about a minor league or D League or age limit, it all relates to the operation of this league, and at the bottom, it sort of all could be referred to as an economic question."
If the league does institute such a rule, it likely will be challenged in court. However, the league is confident the rule will hold up as long as it was collectively bargained. The NFL successfully defended a recent suit by running back Maurice Clarett. In May, a three-judge appeals panel said federal labor policy allows NFL teams to set rules governing when players can enter the league, stopping Clarett from entering last year's NFL draft.
Contract length
This issue could be the deal breaker.
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 six-year deals.
This is a sticking point for owners, who often get stuck with the bill for players who become injured or don't pan out. Teams have few options if they want to part with a player with a bad contract. They can hope he retires, try to trade him (usually taking back another bad contract in return) or try to buy out the contract.
This fall, several players, including Howard Eisley and Eddie Robinson, were bought out for significant sums. The problem for owners is they have to pay a player who winds up playing for another team. They also cannot get the player off the books until the contract originally would have expired. Once a team buys out a player, the buyout amount remains on the books until the original deal expires.
This has grown into a major problem. This season, the Bulls and Nets will be paying more than $15 million in salaries to players who aren't on their current rosters. Three other teams – the Bucks, Celtics and Grizzlies – owe more than $10 million in salaries to players not with the teams. A number of other clubs, including the 76ers, Wizards, Rockets, Mavericks and Suns, also owe significant amounts to players who are playing elsewhere.
The owners' original proposal wanted contracts shortened to three or four years. According to several sources, the owners in the past few weeks have softened their stance a little and are now willing to agree to maximum contract lengths of four and five years.
So far, the union has agreed to compromise a little, shortening the maximum number of contract years to five or six. However, the players don't seem to be willing to move any further without major economic concessions from the owners.
"If they want to get rid of that extra year," one source close to the union told Insider, "it's going to cost them. That's a major issue for the players. We've already given up one year. I think it's enough. If they want to get rid of the escrow tax or something, then we can talk about reducing those lengths further."
Raises
For months, players and management remained far apart on this issue.
Under the current CBA, players are allowed maximum raises of 12.5 percent per year if they re-sign with their current teams and 10 percent if they sign with new teams in free agency.
The effect of those raises can be devastating to a franchise over time. For example, the Los Angeles Lakers, who last summer signed Kobe Bryant to a seven-year contract with 12.5 percent raises, are on the hook for $14.175 million this year. In 2010-11, they owe him $24.8 million.
Owners contend the raises are out of whack with the current financial realities. Last year, the salary cap stayed flat. In years past, it has increased by small, incremental amounts. If salaries are rising 10 percent per year and the cap is rising 3 percent, teams that are avoiding the luxury tax now won't be so lucky in three or four years.
Some clubs have tried to counter this trend by offering players flat contracts. However, very few agents or players are agreeing to them.
To curb the growth of salaries, owners have proposed rolling back the maximum raises to 5 percent for players who re-sign with their current teams and 4 percent for players who sign with a new teams in free agency.
This is a major sticking point for veteran players, who count on those nest-egg balloon payments at the end of their careers. So far, the players are holding firm to the current numbers of 12.5 and 10 percent.
According to sources, the owners have softened their stance on this issue during the past few weeks to the point that it's unlikely the raise structure will be changed significantly.
http://insider.espn.go.com/nba/columns/story?columnist=ford_chad&id=2062067&action=upsell&appRedirect=http%3a%2f%2finsider.espn.go.com%2fnba%2fcolumns%2fstory%3fcolumnist%3dford_chad%26id%3d2062067
Contract length a deal breaker?
By Chad Ford
Trying to pin down the exact positions of either side in the midst of collective bargaining isn't easy or precise.
Insider has talked to numerous sources on both sides of the negotiation to try to paint the most accurate picture possible of where things stand.
While the negotiations and compromises talked about are really a moving target, here's where we believe they are now:
Age limit
Currently, players are eligible to declare for the NBA draft after their high school senior class graduation if they are from the United States. If they are international players, they must be 18 years old by the night of the draft.
For several years, commissioner David Stern has been vocal in support of an age minimum of 20 for players to be eligible for the draft. Union director Billy Hunter has been just as vocal opposing the limit.
In February, it appeared that the players had warmed to the age-limit idea to the point that several sources believed an age limit would become part of the new collective bargaining agreement. Since then, however, several prominent players have come out and publicly opposed it. Player agents also have been adamant that the union not accept Stern's proposal.
Said one source close to the negotiations, "I think David is the only one left on either side who really wants this to happen."
But that doesn't mean the proposal is dead. The players might be willing to agree to a compromise that sets the age limit at 19, two sources close to the union told Insider.
According to sources, under the current league proposal, high school players would have to wait two years after their high school class graduated before becoming eligible for the NBA draft. International players could not declare for the draft until the age of 20.
The rule likely would go into effect for the 2006 NBA draft.
If an age limit is implemented, it would dilute the draft dramatically for the next several years. If the rule had gone into effect last year, for example, 11 of the first 19 players selected would have been ineligible. Underage players such as LeBron James, Carmelo Anthony, Amare Stoudemire, Chris Bosh and Dwight Howard would've been ineligible for the draft, had the rule been in effect earlier.
It would take several years for the talent pool to restock. By 2008, however, the draft would be stronger, giving teams an extra couple of years of scouting before having to make crucial – and expensive – decisions on players.
The league's main interest in establishing an age limit, however, is economic. With the rare exception of a player such as LeBron, it is difficult to market players who are coming straight from high school. Two years of college publicity gives fans a chance to get to know players before they join the NBA.
"Everything is an economic issue," Stern said in February when asked about an age limit. "I mean that sincerely. Because it affects our business, in terms of our responsibility, the way we are viewed, the players' maturity and how they deal with the community.
"On a broader sense, everything we are talking about, even though it may turn out to be about a minor league or D League or age limit, it all relates to the operation of this league, and at the bottom, it sort of all could be referred to as an economic question."
If the league does institute such a rule, it likely will be challenged in court. However, the league is confident the rule will hold up as long as it was collectively bargained. The NFL successfully defended a recent suit by running back Maurice Clarett. In May, a three-judge appeals panel said federal labor policy allows NFL teams to set rules governing when players can enter the league, stopping Clarett from entering last year's NFL draft.
Contract length
This issue could be the deal breaker.
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 six-year deals.
This is a sticking point for owners, who often get stuck with the bill for players who become injured or don't pan out. Teams have few options if they want to part with a player with a bad contract. They can hope he retires, try to trade him (usually taking back another bad contract in return) or try to buy out the contract.
This fall, several players, including Howard Eisley and Eddie Robinson, were bought out for significant sums. The problem for owners is they have to pay a player who winds up playing for another team. They also cannot get the player off the books until the contract originally would have expired. Once a team buys out a player, the buyout amount remains on the books until the original deal expires.
This has grown into a major problem. This season, the Bulls and Nets will be paying more than $15 million in salaries to players who aren't on their current rosters. Three other teams – the Bucks, Celtics and Grizzlies – owe more than $10 million in salaries to players not with the teams. A number of other clubs, including the 76ers, Wizards, Rockets, Mavericks and Suns, also owe significant amounts to players who are playing elsewhere.
The owners' original proposal wanted contracts shortened to three or four years. According to several sources, the owners in the past few weeks have softened their stance a little and are now willing to agree to maximum contract lengths of four and five years.
So far, the union has agreed to compromise a little, shortening the maximum number of contract years to five or six. However, the players don't seem to be willing to move any further without major economic concessions from the owners.
"If they want to get rid of that extra year," one source close to the union told Insider, "it's going to cost them. That's a major issue for the players. We've already given up one year. I think it's enough. If they want to get rid of the escrow tax or something, then we can talk about reducing those lengths further."
Raises
For months, players and management remained far apart on this issue.
Under the current CBA, players are allowed maximum raises of 12.5 percent per year if they re-sign with their current teams and 10 percent if they sign with new teams in free agency.
The effect of those raises can be devastating to a franchise over time. For example, the Los Angeles Lakers, who last summer signed Kobe Bryant to a seven-year contract with 12.5 percent raises, are on the hook for $14.175 million this year. In 2010-11, they owe him $24.8 million.
Owners contend the raises are out of whack with the current financial realities. Last year, the salary cap stayed flat. In years past, it has increased by small, incremental amounts. If salaries are rising 10 percent per year and the cap is rising 3 percent, teams that are avoiding the luxury tax now won't be so lucky in three or four years.
Some clubs have tried to counter this trend by offering players flat contracts. However, very few agents or players are agreeing to them.
To curb the growth of salaries, owners have proposed rolling back the maximum raises to 5 percent for players who re-sign with their current teams and 4 percent for players who sign with a new teams in free agency.
This is a major sticking point for veteran players, who count on those nest-egg balloon payments at the end of their careers. So far, the players are holding firm to the current numbers of 12.5 and 10 percent.
According to sources, the owners have softened their stance on this issue during the past few weeks to the point that it's unlikely the raise structure will be changed significantly.
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