New CBA: What does it mean for the Mavs?

[Stressboy]

After reading the thread in the Around the NBA section, I thought that there was significant points of interest in the new CBA for the Mavs. Now none of this is final, but it seems reasonable to be able to look at some of the new elements now. The two biggest developments in my opinion for the Mavs are:

1) The threat of the supertax went away.
2) The tax money will be distributed evenly to all 30 teams instead of just to those under the tax. This means that instead of a $1 dollar tax over the threshold, it will be closer to a $.8 or $.7 or possibly lower tax in real dollars lost.

The threat of the supertax cost us Steve Nash, but looking forward it means that Cuban can safely be in the top 5 in spending without losing too much money. This is great news for the Mav's fan.

The new tax distribution scheme will affect all teams. For example, because Sterling will not get as much of a refund for being cheap, he will now spend up to the limit and not fear going over a little. In fact I predict that most teams will now go up to and over the tax, but the cheap ones will only go over the amount their refund will cover.

Thus there will be brackets of tax (I have not really run any numbers so this is just guessing, if you want to compute this stuff feel free):

If the salary cap is 50mil those between 50-60mil will probably have no tax real tax as the refund will cover the tax.
If the team salary is 60-70 you pay 30-50 cents per dollar over in real lost money and so on. Now sterling could see 5mil in tax paid out and the recieved as 5 mil lost had he not spent the money and he is right, but it is not really a penalty to be a little over.

This is great news for the big spenders, but even better news for teams like the Suns. They can now safely sign all of their free agents without losing too much money. Of course this will escalate all free agent contracts as teams will pay more to try and get the free agents. I would not be suprised if Joe Johnson gets 1-3 mil more per year than he would have under the old CBA.

Any other issue that will be big for the Mavs? Also, what do you think Mav strategy will be now?

Stressboy

[grndmstr_c]

The tax bit is big. Overall I'd guess the benefit will be pretty evenly distributed among the teams. Big spenders like the Mavs are happy not to have the supertax (I'm sure), teams that stick closer to the cap get a little more flexibility with the raise in the cap (up to 51% of BRI, or something, right?), and the redistribution of tax monies evenly among all teams is a good move IMO if only because it stops rewarding teams like the Clippers for deliberately avoiding being competitive.

The only other thing that jumped out at me that might directly impact the Mavs in the short-term is the MLE staying the same rather than being broken up into a 75% and 25% exception. Given that the MLE is all the Mavs have to work with this offseason I'm gald for the flexibility they're afforded by keeping it all together, though how much of a difference it'll make is an open question since some of the other provisions could encourage overspending in the free agent market this offseason. At any rate, the Mavs certainly figure to be considerably more motivated (and able) to land a decent player in FA than they would have had there been, for example, a supertax, a retention of the old system for distributing tax revenues, and a split MLE.

[chumdawg]

If the new CBA encourages more spending than the last one did, then that's one more error in judgment you can attribute to Cubes. I believe he said that he "had no doubt" there were would be changes to the CBA that would encourage financial conservatism and that he expected the new CBA to make high-dollar contracts very difficult, "if not impossible" to trade.

But that aside, I would think that the new CBA won't be especially helpful to the Mavs in the short term. Not in a basketball sense, anyway.

[Smiles]

It means people keep ther jobs and, who knows, maybe there will even be raises. [img]i/expressions/face-icon-small-happy.gif[/img]

This is a happy day for so many. I have such incredible appreciation and relief for the individuals who made concessions in order to guarantee that next season would happen without a delay. [img]i/expressions/heart.gif[/img][img]i/expressions/heart.gif[/img][img]i/expressions/heart.gif[/img][img]i/expressions/heart.gif[/img][img]i/expressions/heart.gif[/img][img]i/expressions/heart.gif[/img][img]i/expressions/heart.gif[/img][img]i/expressions/heart.gif[/img][img]i/expressions/heart.gif[/img][img]i/expressions/heart.gif[/img]

[grndmstr_c]

If the new CBA encourages more spending than the last one did, then that's one more error in judgment you can attribute to Cubes.

For all the screw-ups they've apparently made I'm absolutely boggled at how this team managed to win 58 games last year, is in good position to improve next year, and has only missed the second round of the West playoffs once in the last 5 years. Oh well. If you have to be a fan of an inept, bumbling, little league excuse for an NBA team I guess its really all one can hope for to have a lot of watchdogs around to call them out for their many gaffs.

[Simon2]

So, does that mean there will be a summer league?

[chumdawg]

Originally posted by: grndmstr_c

For all the screw-ups they've apparently made I'm absolutely boggled at how this team managed to win 58 games last year, is in good position to improve next year, and has only missed the second round of the West playoffs once in the last 5 years. Oh well. If you have to be a fan of an inept, bumbling, little league excuse for an NBA team I guess its really all one can hope for to have a lot of watchdogs around to call them out for their many gaffs.

I guess I just take umbrage at being called an "idiot" by a guy who's trying to sell me his product. Especially when his justifications for questionable moves get proved more and more wrongheaded all the time...

There's more than one way to characterize the last five years, m'friend. For example, another way would be to say that the team was making a steady ascent up the ladder of power in the West, before dismantling their team after the '03 season and winning one playoff series since.

Edit: By the way, I don't know what sense it makes to continue to repeat the "58 games" mantra, when in the wake of a 60-win season, this organization decided that its 60-game winners weren't good enough to compete for it all. Apparently one is not necessarily related to the other.

[grndmstr_c]

When did Cuban call you an idiot?

My own opinion looking back at what happened after the 60 win season was that the Mavs took their shot, hit some good luck and some bad luck, couldn't get it done, and because of age and injuries made the right decision in turning the team over. Neither Nick or Raja, whose departures were among the most lamented have gone on to do anything worth talking about, and I'll maintain till I'm blue in the face that the trade that brought in Antawn was a terrific one (Nellie's stubborn refusal to start him is another story). I won't come to the defense of the Boston trade so strongly, but it has to be noted that Raef's knee would have kept him out that season anyway, and Walker was the piece that brought us Terry and indirectly allowed us to trade for KVH. The Mavs were simply stuck behind the 8-ball as far as competing for a championship in 03/04, but managed to come out of it with a team that was probably comparable to the 02/03 team at the end of it all AND arguably has better long-term prospects. CD, your basic point that the decision to let Nash walk may have been made in part because Cuban innacurately guaged the prospects for the new CBA is not in and of itself objectionable, and is quite possibly correct. The problem I had was that you followed it up with the "one more error" bit, which reeks of sour grapes in the midst of what for my tastes is quite a sweet summer harvest.

[chumdawg]

It's not so much that I'm lamenting the past. It's that I have absolutely zero confidence in the future. The Mavs aren't going to be missing the playoffs anytime soon, but on the other hand, I'm not putting any deposits on NBA Finals tickets, either. I expect the Mavericks, by the end of Dirk's career--or the end of his tenure here, whichever comes first--to have been a solid playoff team but a team that could never get over the hump and make it deep into the playoffs. I say this because I'm not convinced the team has any sort of vision in the front office. The moves of one summer seem to always reverse the moves of the summer before. We've even seen conflicting moves, from a "vision" standpoint, in the same summer.

I see the Mavs as a team that is quick to rely on the major asset (Dirk) it does have as its saving grace, allowing it to do highly unconventional things such as hand the coaching reins to a guy who has never coached before, use a combo guard as a point guard, or depend on mostly unproven rookies or second-year men in key roles. All the while maintaining a revolving door of players who are more trading chips than contributors, when it's all said and done. It strikes me as a team that is waiting around, hoping, that the next big break will come their way. That an AJ works as head coach. That a Harris develops into a top PG. That a Daniels finds a jumper. That a Stackhouse or KVH brings the next puzzle piece in trade. That Dampier can hold his own against the Yao's, Amare's, and Duncan's of the world. They strike me as a team that can't envision the future, but hopes they can recognize it when they see it.

[Just211]

I just heard Stern say rosters will be expanded to 14. That would allow DJ and PPOD to dress all year to takte advantage of any available PT.


well shit, now he said it is 12 active 15 total. I'm confused. but I hope it's 14 active

[Stressboy]

chumdawg,

Your last pharagraph, made the me say yes, but don't all teams do that? I mean Miami got lucky and got Shaq but they will be searching for that missing piece, Phoenix is going to be searching for the next piece also. Everyone one behind them and us, is searching. As far as a vision, we are just in the middle of a major overhaul in that area. We went the Phoenix route and found it less than satisfying, and started reshaping our roster to fit a new style, while trying to get our coach of the old style to step down. I think the vision is more athletic, more defense, more frontline help, with a relatively young core while still having lots of firepower.

As for the moves to get ready for the next big trade I say fantastic. Thank God, for Donnie Nelson. Next to the spurs scouting, he is the best in the business and has helped get us and keep us in the top 5 through tons of change while compiling tons of assets for that missing piece.

I sure hope we get it soon because the Spurs and Houston fans are really making me question my allegience to other Texas teams.

Stressboy

[Lebanese_Fan]

The biggest benefit is we can move VAN HORN's contract for an all-star and not care abut reducing our Cap. I am soo relieved.

[SeriousSummer]

I actually think the biggest benefit is the right to assign a player with less than two years' experience to the NBDL. Now Pavel and DJ can be sent somewhere to play if they're not NBA ready next year. It's only too bad that they didn't have that chance last year.

[grndmstr_c]

I actually think the biggest benefit is the right to assign a player with less than two years' experience to the NBDL. Now Pavel and DJ can be sent somewhere to play if they're not NBA ready next year. It's only too bad that they didn't have that chance last year.

Oh, I'd missed that part. Not quite a minor league, but I'll take it. The opportunity to get some of these kids playing time will be a good thing. It might even help to facilitate subtle improvements in end-of-the-bench play in the NBA by giving a shot to some of the vets who are good enough to be on an NBA roster but have been squeezed out by the concentration of non-producing potential currently eating up salary spots.

[dirno2000]

Originally posted by: SeriousSummer
I actually think the biggest benefit is the right to assign a player with less than two years' experience to the NBDL. Now Pavel and DJ can be sent somewhere to play if they're not NBA ready next year. It's only too bad that they didn't have that chance last year.

It'll be interesting to see how the NBDL as a minor league system works out. Will any GM be willing to risk his reputation by sending his 1st round draft choice down only to see him get devoured by players supposedly not good enough for the NBA?

[Stressboy]

That part was not mentioned this with the earlier articles, but it is good. I hope they expand it so that you can have the rights to more than just 15 players.

If it was me I would have 2nd rounders become guaranteed 1 year contracts at the NBDL level if they don't get an NBA contract. That way the teams pay attention to them some and also undrafted free agents could sign a contract so that a team owns their rights. Given that I would limit the amount of time a player could be in the NBDL to 3-4 years because of all the turnover you would have.

The cool thing would be how the fans would support the NBDL. If there is a team in Ft. Worth and we had 3 players (benga, ppod, free agent pickup) on the team, we would follow the team and I would probably go over for at least 1 game. It would be like summer league all year long becuase we would have a vested interest in some of the players.

I'm rambling.

Stressboy

[Misfit Mav]

Originally posted by: Stressboy
That part was not mentioned this with the earlier articles, but it is good. I hope they expand it so that you can have the rights to more than just 15 players.

If it was me I would have 2nd rounders become guaranteed 1 year contracts at the NBDL level if they don't get an NBA contract. That way the teams pay attention to them some and also undrafted free agents could sign a contract so that a team owns their rights. Given that I would limit the amount of time a player could be in the NBDL to 3-4 years because of all the turnover you would have.

The cool thing would be how the fans would support the NBDL. If there is a team in Ft. Worth and we had 3 players (benga, ppod, free agent pickup) on the team, we would follow the team and I would probably go over for at least 1 game. It would be like summer league all year long becuase we would have a vested interest in some of the players.

I'm rambling.

Stressboy

That's a great point. I would definitely follow an NBDL team, at least casually, if it had some Mavs players on it. Also, playing against low-level NBA competition would be very good for NBDL players, and would help GM's decide if they should have a shot at the NBA.

[Speedy]

This is the NBA press release copied from realgm.

The NBA and the National Basketball Players Association announced today that they have reached an agreement in principle on the key items of a new 6-year collective bargaining agreement.

NBA Commissioner David Stern, Players Association Executive Director Billy Hunter and President Michael Curry announced the agreement prior to Game 6 of The Finals in San Antonio.

“This new agreement creates a strong partnership with our players, which is critical to our prospects for continued growth on a global basis,” said Stern. “Once the deal is finalized, the NBA and its players will be able to focus on the enormous opportunities we have together.”

“Although a definitive written agreement must still be completed,” Hunter added, “we believe we have reached the framework for a deal that preserves and enhances gains that the players have made under the expiring agreement. The new CBA deals fairly with the issues that are important to the league, and gives our sport the continuity that will be so important to its growth and to its fans.”

The agreement includes an increase in the salary cap, a lessening of the impact of the luxury tax, a decrease in the escrow withholding over the term of the deal (to 8%), and a guarantee by the league that the players will receive no less than 57% of basketball related income (a percentage that will increase as revenue increases). The maximum length of player contracts will be reduced to 6 years, from their current 7, and maximum annual increases in salaries will be reduced from 12½ to 10½ percent for teams resigning their own players and from 10% to 8% for teams signing free agents.

On non-economic matters, the minimum entry age will be increased from 18 to 19 years and teams will have the ability to assign players with less than 2 years experience to the NBA Development League. The number of random drug tests as well as the penalties for violations will be increased. The league will guarantee that, on average, all teams will have 14-player rosters, and players suspended for more than 12 games for on-court misconduct will be able to challenge the suspension before a neutral arbitrator.

While the agreement is being reduced to a definitive writing, the moratorium on free agent signings presently scheduled to expire on July 14th will be extended to July 22nd. During this period, summer leagues may be conducted, rookies may be signed, and free agents will be permitted to negotiate, but may not sign, new contracts.
The agreement is subject to the approval of the NBA Board of Governors and the membership of the Players Association.

KEY POINTS

The following are the key points agreed to by the NBA and the Players Association in their new 6-year collective bargaining agreement:

• Players will be guaranteed to receive 57% of league revenues (BRI), the same percentage paid to players the last two seasons. (This is the first time the league has ever agreed to guarantee the players an agreed-upon percentage of revenues.)

• The Salary Cap will increase from 48% of BRI to 51% of BRI. All Cap exceptions will remain unchanged, including the Mid-Level Exception ($4.9 million per team this past season).

• The amount of money that can be withheld from player salaries under the “escrow” system will be reduced from 10% of salaries in year 1 of the new deal to 9% in years 2 through 5 and 8% in year 6. The 57% escrow level will increase with revenue growth.

• The effect of the existing luxury tax on teams will be reduced and there will be no additional taxes. The tax level will be set at 61% of league revenues (the same level as in the 2001-02 – 2003-04 seasons). Tax treatment for injured players and minimum salary players will be liberalized.

• The maximum length of a player contract will be reduced by 1 year, from 7 years for a team’s own players and 6 years for other players to 6 years and 5 years.

• The league will guarantee that, on average, all teams will have 14-player rosters.

• The maximum annual increases in multi-year player contracts will be reduced from 12.5% for a team’s own players and 10% for other players to 10.5% and 8%.

• Players will be subject to 4 random drug tests per season and penalties for use of performance-enhancing drugs will be increased.

• The age limit for entering the draft will increase from 18 to 19 (plus one year removed from high school).

• Players will have the right to an arbitrator’s review of Commissioner suspensions for on-court misconduct of more than 12 games (currently, no arbitrator review is permitted regardless of the length of the suspension).

• Players in their first two seasons in the league may be placed on teams in the NBA Development League for skills development.

• There will be an increase in the minimum salary and benefits. Pension benefits will be increased subject to IRS approval.

[Misfit Mav]

Originally posted by: Speedy

• Players will have the right to an arbitrator’s review of Commissioner suspensions for on-court misconduct of more than 12 games (currently, no arbitrator review is permitted regardless of the length of the suspension).

Ha ha, the "Ron Artest" rule.

Originally posted by: Speedy

• The league will guarantee that, on average, all teams will have 14-player rosters.

I'm confused... does this mean a 14-player active roster with a one-man injury reserve?

Thanks for posting, Speedy. All in all, this looks like great news for the Mavs and the whole league.

[HexNBA]

from Chad Ford's article (espn link)

Second, each team will be given a one-time option this summer to waive one player from its roster and receive luxury tax relief. The team will still have to pay the player and his salary will still count against the cap, but the team won't have to pay a luxury tax on his salary. For example, the Knicks' Allan Houston might a candidate to be waived because of this rule

And yeah Misfit Mav, I'm confused too. Active roster is now 14, but I cant see how they'd have just 1 inactive roster spot so I'm guessing there are still 3. I havent read anything clarifying this though.

[dirno2000]

Another nugget that may benefit Cuban:

First, under current rules players who are determined to be "permanently injured" cannot be taken off the books for two years. In the new agreement that number will be reduced to one.

Does this mean that Esch comes off the cap this summer?

For years, both GMs and players have been complaining about restrictive trade rules that mandate all trades be within 115 percent and $100,000 of each other. Those rules make many prospective trades impossible.

The trade rules will be significantly loosened under the new CBA. The gap allowed between salaries traded and received will be increased to 125 percent and $100,000.

If nothing else, this should double the threads in the trade/draft fourm.

[bcrav4]

David Stern just said we get 14 active players.

[grndmstr_c]

There's some talk over at db.com that the wiggle room on trades for teams over the cap, currently 15% + 100,000, has also been increased to 25% +100,000. Anybody have any verification one way or the other on this?

[dude1394]

Originally posted by: Just211
I just heard Stern say rosters will be expanded to 14. That would allow DJ and PPOD to dress all year to takte advantage of any available PT.


well shit, now he said it is 12 active 15 total. I'm confused. but I hope it's 14 active

So are they getting rid of the bogus injury list and just having 3 inactive?

[DubOverdose]

Originally posted by: grndmstr_c
There's some talk over at db.com that the wiggle room on trades for teams over the cap, currently 15% + 100,000, has also been increased to 25% +100,000. Anybody have any verification one way or the other on this?

That could be huge! Teams can more easily reduce their payroll or more easily obtain a higher calibur player.

[dirno2000]

Originally posted by: grndmstr_c
There's some talk over at db.com that the wiggle room on trades for teams over the cap, currently 15% + 100,000, has also been increased to 25% +100,000. Anybody have any verification one way or the other on this?

It's in Ford's CBA article and a couple of posts up...

[grndmstr_c]

duh. Thanks.

[MavsFanFinley]

Second, each team will be given a one-time option this summer to waive one player from its roster and receive luxury tax relief. The team will still have to pay the player and his salary will still count against the cap, but the team won't have to pay a luxury tax on his salary. For example, the Knicks' Allan Houston might a candidate to be waived because of this rule

I'm surprised this hasn't been talked about more. Over on the LMF board, they're wondering if Cuban will waive Finley?

[grndmstr_c]

Over on the LMF board, they're wondering if Cuban will waive Finley?

Which is precisely why I don't post over there.

[dirno2000]

I don't think it will happen, but it could be mutually beneficial. If we assume that the luxury tax will be triggered over the next 3 seasons (that may not be a safe assumption) then Cuban would be on the hook for roughly $50MM in luxury tax on Fin's contract. To get around this, Cuban waive him, let him clear waivers then sign him for the minimum for three years...actually he could sign him for more than the min and still come out ahead depending on his luxury tax assumptions.

It's a win-win situation...Cuban saves the luxury tax and Fin nets an addition $1.5MM over the next three years.

Of course I'm sure Stern wouldn't look kindly on this clear attempt to skirt the rules and Fin wild have to live with the ignominy of being cut. Still, I don't think it's totally outlandish.

[grndmstr_c]

I just kind of assumed they would've built in something to prevent that scenario, but now that you mention it perhaps this provision had something to do with those Henderson and Payton deals this year. Have you heard whether there were any changes to the rule that allowed Dallas and Boston to resign those guys?

[Lebanese_Fan]

Originally posted by: dirno2000
I don't think it will happen, but it could be mutually beneficial. If we assume that the luxury tax will be triggered over the next 3 seasons (that may not be a safe assumption) then Cuban would be on the hook for roughly $50MM in luxury tax on Fin's contract. To get around this, Cuban waive him, let him clear waivers then sign him for the minimum for three years...actually he could sign him for more than the min and still come out ahead depending on his luxury tax assumptions.

It's a win-win situation...Cuban saves the luxury tax and Fin nets an addition $1.5MM over the next three years.

Of course I'm sure Stern wouldn't look kindly on this clear attempt to skirt the rules and Fin wild have to live with the ignominy of being cut. Still, I don't think it's totally outlandish.

'

This is such a great idea. I think stern didn't see this coming. He will kill himself.
Miami can also waive Shaq's 30 mill a year and then resign Him.
If stern doesn't control this with a certain law, owners and GMs will go crazy doing this and avoiding the luxury.

[jthig32]

Originally posted by: dude1394

So are they getting rid of the bogus injury list and just having 3 inactive?

From Ford's article:

Currently, teams can have a maximum of 15 players on their rosters, with a minimum of 11. Under the new agreement, the minimum will be raised to 14. This is another concession by the league.

The owners also have agreed to do away with the injured list, changing to inactive and active lists. That means teams no longer will have to concoct player injuries in order to manage their roster.

[LRB]

Originally posted by: Lebanese_Fan

'

This is such a great idea. I think stern didn't see this coming. He will kill himself.
Miami can also waive Shaq's 30 mill a year and then resign Him.
If stern doesn't control this with a certain law, owners and GMs will go crazy doing this and avoiding the luxury.

Well there is one small hitch. If Miami waves Shaq, then Shaq would be free to sign with a Dallas, or Phoenix, or Detroit, or San Antonio and Miami would would get no talent in recompense and still have to pay Shaq's full salary howbeit without luxary tax. There's no guarrantee that some other team won't end up with your talent if you take this risk. Look at Cleveland and Carlos Boozer for an example.

[Lebanese_Fan]

Originally posted by: LRB

Well there is one small hitch. If Miami waves Shaq, then Shaq would be free to sign with a Dallas, or Phoenix, or Detroit, or San Antonio and Miami would would get no talent in recompense and still have to pay Shaq's full salary howbeit without luxary tax. There's no guarrantee that some other team won't end up with your talent if you take this risk. Look at Cleveland and Carlos Boozer for an example.

But they can make an agreement together. Why would Shaq leave Miami, he loves it there. And he is a king there. Guys like Shaq are pretty credible.

[LRB]

But they can make an agreement together. Why would Shaq leave Miami, he loves it there. And he is a king there. Guys like Shaq are pretty credible.

Why would Shaq leave? To get more money. To have a better chance at winning more championships. Any number of possible reasons. Why not give Shaq the option to end his contract and become a free agent every year if he's such a trustworthy guy? The point isn't that he definitely would, but that he could and his loss would have a catastrophic effect on the Miami Heat organization.

[Lebanese_Fan]

Yeah, it is too risky. You are right. But it is a very useful rule. The new CBA has more exceptions and tweaks, which is extremely fun for us, the fans.

[LRB]

Originally posted by: Lebanese_Fan
Yeah, it is too risky. You are right. But it is a very useful rule. The new CBA has more exceptions and tweaks, which is extremely fun for us, the fans.

Yes, it's useful for players towards the ends of their careers who's talent is much less than their contract. I think you'll see it with players like Hendu or Payton or even possibly Fin, though I doubt it there because Fin is still too much talent to lose for nothing in return just to save some tax money IMO.

[Just211]

so its still only 12 active. that sucks