HoopsHype Salary Cap rumors

October 7, 2014 Updates

And the riches could be spread far and wide, as the salary cap surges from $63 million this season to a projected $84.4 million in 2016-17. Every team in the league could be under the cap in two years (even the spend-happy Nets), creating a cash surplus that—under the NBA's system—must be spent on players. Bleacher Report

The current collective bargaining agreement actually runs through 2021, but either side can opt out in 2017, and the players are almost certain to do so, for obvious reasons: 1. The union made massive financial concessions in 2011, giving up $300 million a year. 2. The new TV deal, as James indicated, removes the NBA's rationale for those concessions. "I think it's a pretty good bet, based on both of those things," that the players will opt out, Michele Roberts, the union's new executive director, told Bleacher Report in a recent interview. She added, "It would be silly for anyone to assume" otherwise. Bleacher Report

Roberts made that prediction before the new TV deal was completed, but both sides have long known that the huge revenue spike was coming and that it would prompt a reassessment of the labor deal. Indeed, Roberts said, "The minute I was told I was selected to be the executive director (in July), I started preparing for the opt-out." Bleacher Report

About a week into the process, Fegan decided it was time to try to propose something different. And that led him to the three-year construction, featuring the Year 2 player option and a maximum 15 percent trade kicker. He then took to it Cuban, convinced that the new formula would put the most pressure on Houston to let Parsons go if the Rockets hoped to maintain the utmost flexibility. For the following reasons: Players in the first year of a matched offer sheet can't be traded without their consent. With the ability to become a free agent after the second year, Parsons would likely have diminished trade value to small-market teams fearful he'd simply leave at the first opportunity ... while also potentially dissuading big-market teams that prize flexibility from trading for him and then seeing Parsons decide to opt in for the third year. The trade kicker in this contract could also prove to be even more expensive than usual, were Parsons to be dealt, if the salary cap rises as dramatically as some are projecting thanks to the TV money expected to pour into the league in the near future, as ESPN.com's Larry Coon explains in greater detail here. And in the Rockets' case specifically, Parsons' possession of an option to become a free agent in July 2016 meant he and Howard would likely be returning to the open market at the same time, which figured to be uncomfortable for Houston. ESPN.com

The league right now projects a jump to $66.5 million for 2015-16, a modest rise pegged to the final year of that modest $930 million TV deal. If the new TV deal kicks in for the 2016-17 season just shy of $2 billion, the cap could exceed that same $14 million leap, all the way to around $80-plus million, in a single year. If for some reason the new TV deal starts north of $2 billion in the first year — meaning it would include smaller year-over-year jumps — the cap for 2016-17 could leap even higher. If it started at that exact $2.68 billion figure, it would break $90 million, according to my own math and some bleary-eyed late-Sunday projections from cap gurus around the league. The plans as of now are to start at $2.1 billion in 2016-17, the first year of the deal, and escalate in even year-over-year increments to a peak of $3.1 billion in the final year, per sources who have reviewed a memo the league sent to teams today. Grantland

Other smoothing mechanisms would need to involve the union, and the league is open to that. Some team executives have floated the idea of retroactively bumping up existing contracts that carry into the new TV deal, to make sure those players get their share. That would draw opposition from teams who signed those contracts specifically with an eye on how their value would evolve. Grantland

October 6, 2014 Updates

With TV and digital revenue more than tripling over the eight-year, $7.4 billion agreements that expire after the 2015-16 season, the financial landscape of the sport will be forever transformed. According to team executives who have crunched the numbers, the windfall could result in a $91.2 million salary cap in 2016-17 -- when LeBron James and Kevin Durant are due to be free agents. That's up from $63.065 million for this coming season and $58.679 million in 2013-14. That's right, the cap jumped 7.5 percent for 2014-15, indicating that the league has been making more money that expected under the 2011 CBA even before the lucrative new TV deals were finalized. CBSSports.com

October 5, 2014 Updates

Rick Bonnell: Sounds like NBA's new TV deal is done. Lots more revenue, which means a higher cap. Get ready for sticker shock on player salaries. Twitter @rick_bonnell

August 27, 2014 Updates

When asked if there is concern to reach the NBA salary floor, Hinkie said: "At this point, that is not something that is a concern for us." The salary cap will be a little over $63 million this season. The minimum team salary, which is 90 percent of the cap, is just under $57 million. The Sixers are currently around $24 million, but that doesn't include any of the rookie salaries. Philadelphia Inquirer

August 26, 2014 Updates

Salary cap expert Larry Coon, whose Q&A website offers a thorough explanation for the complicated collective bargaining agreement, says that if the Sixers can’t (and they probably won’t) spend another $32.6 million on players by the time the season ends, that money will be handed over to the the National Basketball Players Association for distribution. Who gets it? Anyone who played for the 76ers. Coon explains: The shortfall is based on the team salary as of the team’s last regular season game, but the distribution comes after the league’s audit in July The union informs the league of its proposed distribution within 30 days after the audit, and the team has 10 days after receiving the proposal to distribute the money. There is no set rule for how the money is distributed – the CBA just says “…pro rata or in accordance with such other formula as may be reasonably determined by the Players Association.” For The Win

August 19, 2014 Updates
August 3, 2014 Updates
August 2, 2014 Updates

According to CBA expert Larry Coon's comprehensive FAQ, the Pacers would have 45 days to acquire a replacement player. Last season, the NBA approved a disabled player exception for the Brooklyn Nets, who lost center Brook Lopez to a season-ending injury, and Atlanta Hawks, who lost forward-center Al Horford to a season-ending injury. The New Orleans Pelicans also were granted a disabled player exception for forward Ryan Anderson, who sustained a back injury in January last season. USA Today Sports

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