HoopsHype Salary Cap rumors

November 24, 2014 Updates

If you could instantly change anything about the NBA, without having to negotiate the terms or compromise your position, what change would you make? Adam Silver: I would have a harder salary cap. I still think it's unhealthy for the league when a team like Brooklyn goes out and pays an exorbitant luxury tax in order to give themselves a better chance to win. From a league-office standpoint, the ideal league would be for all thirty teams to compete based on the skill of their management and players, as opposed to one team paying more to get better talent. So creating a more even system would be at the top of my list. And I'll give you one more: I think it would benefit the league to raise the minimum age from 19 to 20. GQ.com

November 23, 2014 Updates

Bryant will make $25 million at 37 years old while Nick Young, Julius Randle and Ryan Kelly take up another $10 million. Various player options (Ed Davis) and team options (Jordan Clarkson, Robert Sacre) could add another $3 million, though Davis could opt out and drive that number even higher. Leave room for an estimated $5 million for their likely two first-round draft picks. It's easy to see the Lakers allocating $43 million toward only nine players amid a conservatively estimated salary cap of $66 million for 2015-16. Throw in troublesome mandatory things called "cap holds" and the Lakers have only $21.5 million to spend next summer on free agents. Los Angeles Times

November 15, 2014 Updates

PT: Does it strike you as strange that the suggestion that the players might request over 50 percent of basketball-related income, maybe materially more than 50 percent, sounds radical in this landscape? MR: Let's put it this way: I have never heard anyone complain about the amount of money George Clooney makes. No one says a peep about the fact that this guy makes probably more than the highest-paid player in the NBA. It's mind-boggling to me that people think that the players make too much given that this is a multi-billion-dollar industry, and they do not enjoy most of the money that's being made. It is insane to suggest that these men make more money than they deserve. It is insane. ESPN.com

November 13, 2014 Updates

NBA commissioner Adam Silver released a statement on Tuesday in response to NBPA executive director Michele Roberts' statements about the salary cap. From the press release: Adam Silver: “We couldn't disagree more with these statements. The NBA's success is based on the collective efforts and investments of all of the team owners, the thousands of employees at our teams and arenas, and our extraordinarily talented players. No single group could accomplish this on its own. Nor is there anything unusual or “un-American” in a unionized industry to have a collective system for paying employees -- in fact, that's the norm. CBSSports.com

Adam Silver: “The Salary Cap system, which splits revenues between team owners and players and has been agreed upon by the NBA and the Players Association since 1982, has served as a foundation for the growth of the league and has enabled NBA players to become the highest paid professional athletes in the world. We will address all of these topics and others with the Players Association at the appropriate time.” CBSSports.com

NBA union executive director Michele Roberts believes the NBA owners are expendable, that players deserve more than a 50-50 split in basketball-related income and that the salary cap needs to be abolished. "Why don't we have the owners play half the games?" Roberts said in an interview with ESPN The Magazine. "There would be no money if not for the players. "Let's call it what it is. There. Would. Be. No. Money," Roberts said, adding emphasis after each word. "Thirty more owners can come in, and nothing will change. These guys go? The game will change. So let's stop pretending." FoxSports.com

"I don't know of any space other than the world of sports where there's this notion that we will artificially deflate what someone's able to make, just because," she said, talking about the league's salary cap, which limits a team's ability to spend on players. "It's incredibly un-American. My DNA is offended by it. "I can't understand why the [players' association] would be interested in suppressing salaries at the top if we know that as salaries at the top have grown, so have salaries at the bottom," she said. "If that's the case, I contend that there is no reason in the world why the union should embrace salary caps or any effort to place a barrier on the amount of money that marquee players can make." FoxSports.com

November 4, 2014 Updates

There will be a massive jump for the 2016-17 season, kicking in right when Durant enters free agency. No one knows how high the cap will go that summer. If left unchecked, it could blow past $90 million. The league and players’ union are discussing plans that would artificially deflate the 2016-17 cap and introduce new TV money into the system more smoothly. The league has pitched several versions of such a plan, including some that set the 2016-17 cap anywhere from $78 million to $82 million, per multiple league sources. Grantland

November 3, 2014 Updates
November 1, 2014 Updates

Why would the Cavaliers sign Anderson Varejao to any type of contract extension, given his injury history? Here is what the Cavs were thinking: 1. Varejao is a tremendous role model because of his hustle, relentless rebounding and grit coming back from injuries. He fits with LeBron James. His unselfish attitude and upbeat personality are ideal for a contender. Coaches love to show tapes of Varejao drawing charges, rolling on the court for loose balls and chasing rebounds. They also appreciate how he has learned some inside moves to score. 2. The market for big men is about to explode when the new salary cap begins to kick in during the summer of 2015. Backups will be paid nearly $10 million a year if they can do a decent job at center. Cleveland Plain Dealer

The contract was reported at $30 million for three years. That's accurate, but not true. The $30 million figure is accurate if he plays all three seasons. It breaks down like this: $9.7 million in 2015-16, fully guaranteed. $10.3 million in 2016-17, $9.3 million guaranteed. $10 million in 2017-18, ZERO guaranteed. Cleveland Plain Dealer

October 29, 2014 Updates
October 19, 2014 Updates

“Things change so rapidly in business that you can’t predict two years from now,” Cuban said. “I think I read it [the salary cap] could go to $91 [million], but I haven’t done the math.” Asked what he thinks about the players wanting to do away with maximum contracts, opening the door for monster deals for monster players, Cuban said: “If you give up guarantees, it’s a trade-off. It was discussed during the lockout [in 2011] among owners but never got anywhere. So it was just one of those trial balloons. I’m not suggesting it. All I’m saying is that was something we discussed before, and max contracts are always a big question, guarantees are always a big question. But we have two years before that’s even an issue.” Dallas Morning News

October 12, 2014 Updates

The new wrinkle this week: the NBA's massive upcoming television rights deal, which will bring in more than $24 billion from ESPN and Turner Sports. That means everything will shoot up: team values, salary caps and player contracts. The rub is the deal doesn't kick in until 2016, meaning players who sign contracts over the next year could feel like someone who buys an iPhone right before the new version is introduced. If Thompson wants in on the gold rush on the horizon, he could always sign a one-year deal, then become a restricted free agent in 2016. "It really is tempting to do all that," Thompson said. "But I'd rather have the security right now, you know?" ESPN.com

October 9, 2014 Updates

The other part is while smoothing, by way of a lump sum payment is a neat and clean way for the NBA to deal with a new influx of cash with a huge jump in the salary cap, how the Player’s Association would distribute those funds becomes unclear as well. They could simply issue an equal installment to every player, or devise some sort of formula to issue monies based on some criteria like percentage of cap. One league source suggested that a lump sum payment could be, at least in part, held back as a war chest of sorts for what’s expected to be a labor fight in 2017, when the players are expected to opt out of the current CBA. Basketball Insiders

With new leadership in place on the player’s side it will be interesting to see if new Executive Director Michele Roberts uses this opportunity to buy some good will among the rank and file, by way of a nice lump sum check to every player, rather than fighting a smoothing plan and letting the 140 or so players headed to free agency absorb the gains from the new TV deal. This is issue is far from decided, so there will clearly be more to know in the coming weeks, however team sources say they are not planning for a massive cap increase in 2016, so that’s at least one indicator that something on the smoothing front could be agreed to. Basketball Insiders

October 7, 2014 Updates

Based on one team's estimates, James could earn $28 million as a free agent in 2016—a 36 percent leap from his current salary. Assuming a four-year deal with maximum raises, James would earn an NBA-record $34 million in the final season, the most any player has earned in the max-contract era. Michael Jordan made a record $33 million in 1997-98, the season before the NBA capped individual salaries. Bleacher Report

Although the players' share of revenue has gone down, their actual earnings are about to spike dramatically, thanks to the new infusion of TV dollars. The average salary, currently $5.5 million, could leap to about $7.3 million in 2016, according to team executives. Bleacher Report

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