NBA Proposes $45 Mil Hard Salary Cap

[jonathanlambert33]

The NBA’s initial proposal for a new collective-bargaining deal called for a $45 million per team hard salary cap along with non-guaranteed player contracts and significant cuts in annual salary increases.

The details, spelled out in an April 26 memo issued by National Basketball Players Association Executive Director Billy Hunter, marks the league’s push for a major overhaul of the NBA’s economic model and emphasizes to players an aggressive bid to significantly slash costs and shorten contracts.

The memo was sent to all NBA players and was dated just days prior to the league delivering to the union a new labor proposal, which a source said still included the $45 million hard cap but added a phase-in of the cap over a few years. Union president Derek Fisher publicly dismissed the latest proposal as too similar to the original proposal.

The memo’s most eye-popping element is the league’s proposed $45 million hard cap, which cuts the current $58 million soft cap by nearly 25 percent.

Hunter said in the memo that the NBA projects the $45 million hard cap number with a team’s total salary not to exceed the cap for any reason. The proposed hard cap as outlined by Hunter also would eliminate the current luxury tax provision, which penalizes teams with a dollar-for-dollar tax for the amount spent on player payroll exceeding the salary cap.

The proposed hard cap is something the NBA has never had under collective bargaining, but it has become a critical element to owners. This initial proposal, and its steep cut in player cap space, demonstrates a strong commitment by the owners to dramatically curtail player payrolls while also supporting NBA Commissioner David Stern’s mantra of making the league more profitable.

The inclusion of non-guaranteed player contracts, while a negotiating point, also represents a radical shift for players who have long benefited from guaranteed deals. Taken together, Hunter felt compelled to send out the missive.

“The nature of the owners’ demands is so onerous that I feel it is imperative to reinforce the message of our recent team meetings with this letter,” Hunter wrote in the memo.

The union confirmed the letter but refused to comment.

A hard cap and no non guaranteed salaries? Looks like there won't be NBA ball next year, but I'm for it. The NBA needs a hard cap and non guaranteed contracts.

But a 45M cap is very low. Miami has over 47M just in their big three. New York has over 36M in Melo and Amare. The Hornets have over 28M just in CP and Mek.

 

[Elite]

I'd assume they'd be scaling down the salaries, which won't fly with the players, meaning we're not gonna have basketball next year

No basketball and no football and I ain't watching hockey, gonna be a long winter

 

[jonathanlambert33]

I'd assume they'd be scaling down the salaries, which won't fly with the players, meaning we're not gonna have basketball next year

No basketball and no football and I ain't watching hockey, gonna be a long winter

Yup.

 

[Pugz]

go to hell with that offer. a hard cap is decent, but $45 Million is just overkill.

 

[cruzg24]

Wow wtf do they think their doing, they should let the rich teams spend and pay a luxury tax.

 

[jonathanlambert33]

Wow wtf do they think their doing, they should let the rich teams spend and pay a luxury tax.

Because they already do that. What would that fix?

 

[Elite]

Because they already do that. What would that fix?

What is there to fix?

 

[RipCity32]

At this point, IDC if we get basketball or not lol.
Pistons are just going to further disappoint me.

 

[jonathanlambert33]

What is there to fix?

The fact that the players control the league? For one, there is more issues rather than that.

 

[.infamous]

I'd assume they'd be scaling down the salaries, which won't fly with the players, meaning we're not gonna have basketball next year

No basketball and no football and I ain't watching hockey, gonna be a long winter

Yeah sucks about no basketball but football wont be locked out imo