Roster Space
- 14 player minimum from 11 player minimum
- 15 player maximum (includes players on IR) stays the same
Trade Rules
- 125% difference in player salaries from a previous of 115% + $100K
NBA Minor League
- NBDL has 8 teams and will have anywhere from 2-3 teams sharing in 2005-2006.
- NBDL expands to 15 teams for 2006 – 2007 season with two NBA teams sharing one NBDL team
- Players under contract by a team, with 3 years or less in the NBA can be sent to the NBDL
- Veterans can not be sent down to NBDL (more than 3 years experience)
- Players drafted in the first round will retain their rookie contract scale while playing in the NBDL
- NBA teams retain full rights of their players and call the player up at anytime in the season.
- NBA teams will have an assistant coach on the NBDL team to monitor the development of their players
Age Limit – 20 yrs or older
- High School players – 2 years after their H.S. graduating class
- International players – 20 years or older
- Effective 2006 NBA Draft
Older NBA veterans like it because it will help some of them keep their jobs longer instead of getting pushed out by the younger players. NBA teams like it because it gives the H.S. players time to develop and make a name for them while in college, which helps with the marketing of the players when they come into the league.
Rookie Pay Scale and Contract
- Pay Scale remains in place with small increases in rookie salaries
- 3rd & 4th years of the contracts are team options
Currently, only the 4th year is a team option
Guarantee Contracts - Length
- 5 yrs – resigning with existing team
- 4 yrs - signing with a new team
- Effective July 1, 2005
The old contract was 7 years for resigning with existing team or 6 years with a new team.
Raises
Undecided – players want to keep the existing raises in place, owners want a change
- Resign with existing team (players 12.5% vs. owners 5%), probably changed to 9%
- Sign with a new team (players 10% vs. owners 4%), probably changed to 7%
The old raise system far outpaces the average raises of the salary cap of 3%
Mid-level Exception
- $3.7M
- $1.2M
The $4.9M mid level exception is split into two 75% and 25% of the value.
Salary Cap
- $50M for salary cap
- 55% of Basketball Related Income to determine salary cap
The old calculations for the salary cap was 48% of the Basketball Related Income where last season the cap was $43.87M
Luxury Tax
- $50M+ to less than $60M - $1 tax for every $1 over $50M
- $60M and over - $2 tax for every $1 over $50M
The tax is not stopping some teams to over spend. Currently player salaries can not be 63.3% over the total basketball revenue is where a team is charged $1 tax. The extra revenue from the taxes would go into the player escrow fund and reduce the amount of money the players have to pay into the escrow.
Player Escrow Fund
- 5% players pay into the escrow
- 60% of BRI
Currently, players pay 10% of their salaries into an escrow. If the Players total salaries exceed 57% of the total NBA basketball related income the owners get the 10% and if it falls below the players get their money back.
Minimum Wage
- $500,000 for minimum and scale increases from there.
Currently, the minimum wage starts at $385,277
Conduct
- Larger penalties for conduct issues
- Performance enhancing drugs and larger penalties for three strike rule
- More clauses to cancel a players guarantee contract
