It's now official, the NBA lockout it's over. After 161 days of lockout, the parties have reached an agreement, the most famous basketball championship in the world will thus be able to begin. And it will be a departure that will go down in history, just think of the date: 25 December. In this Christmas marked by the crisis, a gift is guaranteed for all basketball lovers. A date that is certainly not accidental, a "premiere" on national networks that will surely make the share skyrocket. Owners and players have now ratified the agreement and there have been numerous compromises necessary to achieve it. Both sides have had to soften their positions, driven more by strictly economic reasoning than by conscience. Twenty-five out of thirty owners signed and 88.8% of players voted yes. “A correct agreement, with many compromises and even if it is not perfect, solves fundamental issues in an undoubtedly satisfactory way”, he explains David Stern, commissioner of the NBA.
Le news and the fundamental points of this agreement can be summarized as follows. THE contracts will be shorter and their growth from year to year will be less marked. Unfavorable conditions for stars who change team at the end of the contract. For companies, however, there will be greater wage equality between franchises and strong limitation for those who have excessively higher expenses than the others.
There will be two years of transition between the old and the new contract, in which the "older" teams, such as Boston, Dallas o Los Angeles, they will attempt the last assault. With just a few days left until the start of this season which promises to be exciting, the teams have definitely stepped up to support a championship which will see games average increased to 3,8 per week. With the agreement found, the talks are now over, the field will do the talking.
These are the key points of the contract in detail.
La main novelty concerns the hottest issue that saw players and owners in the trenches to defend their positions, the division of revenue or the BRI (Basketball Related Income) Split. Fifty – Fifty, the 50% to each party, however variable depending on the results in relation to the forecasts. If the economic trend of the League is positive, the players will receive 51% if this is negative they will receive 49%. An exception is the first year (2011/2012), which will be transitional, in which players will have guaranteed 51.15%. Decision also taken in relation to a championship, this year's, which will be reduced (66 games instead of 82) where NBA stars will receive 80% of the originally established salary.
There are also some "Benefits” for players, 1% of their BRI does not go directly into the pockets of interested players, but will go towards a retirement fund for those who have withdrawn.
As in the previous agreement, also to the new one salary capand a “soft” system will be applied. The first two years will be transitional and will therefore maintain the figures of the last contract: 58 million dollars for the salary cap, 70 million instead for the luxury tax threshold. From the third year, however, these values will adjust to the BRI (about 12% less) and according to precise formulas, will grow from year to year. We speak of a "soft" system as there are exceptions that allow the roof to be exceeded.
is recalibrated accordinglyescrow system, the system by which an nba player agrees a nominal value for his salary but what will then go into his pocket depends on this parameter: N:T=E:B (N: salary face value, T: NBA salary cap, E: actual salary value, B: total players' pay, i.e. 57% of BRI to date, 51,15" from next year and 50% in subsequent seasons). An example: In the case of Kobe Bryantte of the 2011 season, the proportion (approximate data) is (25×2150)/1900, therefore the NBA star took just over 28 million, against the approximately 25 agreed with the Lakers.
In order to be within these fixed margins, at the beginning of the season the players leave a sort of deposit to the League (precisely theescrow), which was 8% up until last year, has now been raised to 10%. If at the end of the season the salary ceiling is higher than the total due to the players, the salary surplus is returned. While if the opposite happens, the owners will lose out.
Another fundamental question is that of maximum duration of the contracts. For players who are coming off a minimum three-year contract there is the possibility of a five-year renewal (Larry Bird Exception), for all other "free agents" the limit is four years.
There will also be four years for rookies extensions and renewals for all other players. Three years instead for the renewals of the players chosen in the trade (extend-and-trade, as in the case of Carmelo Anthony). The annual increases may be a maximum of 7.5% (previously it was 10,5%) with the Larry Bird Exception, 4.5% for all the others (previously it was 8%).
Il minimum wage it is reduced by 12%, due to the transition from 57% to 50% of the BRI. Same thing happens at the maximum salary, however, with the novelty for players in their fifth year of contract (basically those leaving the rookies contract) they will be able to access a salary of no more than 25% but 30% of the salary cap.
La duration of the agreement is ten yearsi, but both parties will be able to decide, in 2017, to exit the contract and renegotiate it, in the hope of not seeing a new lockout. In addition, a new one will be signed in 2016 collective TV contract which will inevitably cause the BRI to grow, we will therefore return to discussing percentages.
For those interested in more details, here is the official document released by the NBA.
