The NBA affirmed its intent to seek a rollback of existing contracts. In addition to changing the rules governing contracts signed after the new collective bargaining agreement is in place, the league office will attempt to reduce current salaries, too.

"It's part of our proposal," Adam Silver said. "It included a reduction of existing contracts in addition to a reduction of the maximums going forward."

Silver was asked if Miami's big three would be expected to take a pay cut.

"That's what they did in the NHL," Silver said. "That was the system they had. All existing contracts were cut a certain percentage."

The NBA's original proposal to the union would have allowed for some grandfathering of existing deals with salary cuts taking effect this season.

Via CBS Sports

Read more: http://basketball.realgm.com/src_wiretap_archives/69898/20101102/nba_affirms_intent_to_roll_back_existing_contracts/#ixzz149XGodo3

Is Stern trying to send a message to Melo: "Dude, don't fuss over the CBA, we're gwine roll back your salary anyway. Just chill out and sign with the Knicks as a FA."

Seems it might not really matter to him about signing the extension. Hope this works to our favor. Any thoughts on this announcement?

nixluva wrote:I don't understand this rollback stuff. Didn't the NBA just have a great year? Plus why do the players always have to give up something. MSG is making enough money to totally redo the Garden so we know they aren't hurting.
Am I wrong about the NBA's fiscal strength?

The TV money and the merchandising fees must add up to a tidy sum.

As the "Kiss while you do me" act, the owners andLeague should be required to open the books before roolbacks be conceded.

nixluva wrote:I don't understand this rollback stuff. Didn't the NBA just have a great year? Plus why do the players always have to give up something. MSG is making enough money to totally redo the Garden so we know they aren't hurting.
Am I wrong about the NBA's fiscal strength?

I don't understand how contracts can be changed after they have been signed either. There must be an overriding clause in the CBA that all contracts fall under that can allow such a thing. Or there is something basic about CBA's that I don't understand.

As to your 2nd point, the NBA did have a great year gross revenue wise. But it's the net revenue that determines whether a team makes money. Player salaries however, are based on the percentage of the gross revenue the league makes. That's the heart of the issue right now. That and whether the players trust the audited financial statements from the teams.

SupremeCommander wrote:

TMS wrote:what possible advantage does this have for our chances of landing Melo? all this says to him is that salaries will be rolled back regardless if he waits to sign a contract in free agency or not... if anything it encourages him to make a move now rather than waiting to see how the CBA situation plays out this summer.

There's an argument being made that Melo should sign now to ensure he gets the most amount of cash he can because terms will not be as favorable later as they are now. If existing contracts do get rolled back, that removes some of the incentive to sign today.

why would he want to wait to sign as a free agent then if he already knows contracts will be rolled back regardless? why not just try to be traded this year if he's not happy in Denver?

Andrew wrote:

TMS wrote:why would he want to wait to sign as a free agent then if he already knows contracts will be rolled back regardless? why not just try to be traded this year if he's not happy in Denver?

Possibly because he can pick the team he wants to go to, and the team will be stronger (not have to deplete the roster to acquire him). If his goal is to be competitive with the Heat, I think that would be a consideration.

he certainly has a say in what team he goes to because any team that trades for him will not do so unless he's willing to sign a contract extension... since he now knows that contracts will be rolled back, there's no reason for him to wait on signing one.

if his goal is to be competitive with the Heat, then sure he could wait & sign with the Knicks this summer... or he can sign with the Rockets or Oklahoma City Thunder & be competitive with the Lakers... or he can try & force a trade to the Magic or Hornets & play with other superstars just like he could if he forced a trade to the Knicks... Carmelo has many options... signing with the Knicks this summer is only one of them... i don't see how the contract roll backs increase our chances of landing him in any way.

if u want to increase our chances of landing Melo as a free agent this summer, then the best thing to do would be to trade our young players for CP3... but guys were against that idea too... in the end, unless Gallo, AR or Wilson turn into stars this season, then our chances of attracting Melo aren't as good as some people think IMO.

SupremeCommander wrote:

TMS wrote:

SupremeCommander wrote:

TMS wrote:what possible advantage does this have for our chances of landing Melo? all this says to him is that salaries will be rolled back regardless if he waits to sign a contract in free agency or not... if anything it encourages him to make a move now rather than waiting to see how the CBA situation plays out this summer.

There's an argument being made that Melo should sign now to ensure he gets the most amount of cash he can because terms will not be as favorable later as they are now. If existing contracts do get rolled back, that removes some of the incentive to sign today.

why would he want to wait to sign as a free agent then if he already knows contracts will be rolled back regardless? why not just try to be traded this year if he's not happy in Denver?

forcing a trade and signing immediately is Melo's financial best-case scenario. That goes without saying.

Just to get it straight, I'm not saying I am making that argument. But like I said before, there is an argument that he should sign now and ensure he gets the msot cash possible even if he can't get traded.

before everyone agreed that:

$Current CBA contract >>>>>> $New CBA contract

now Stern is saying it could look more like

($Current CBA contract) x (rollback percentage) > or = $New CBA contract

maintaining the flexibility to choose his own destiny suddenly got more appealing

That's right. Furthermore, he not only wants his new team to be in contention as soon as he arrives (i.e., not decimated by the trade FOR HIM), but he also wants that team to be located in New York City, preferably playing 41 games at The Garden.

I actually agree with TMS that trading our assets for CP3 would be a great lure for Melo. But it's risky due to the knee issues AND the lack of a guarantee that Melo will also come along. So first things first...

We sign Melo to a contract this summer. Then we gauge the market for CP3 and try to use our now developed yoots (i.e., Gallo and AR will most certainly have increased their value during the season) to force a trade with New Orleans.

If the league is successful in its rollback stance, then there is no longer much reason for Melo to prefer a trade, since it would defeat one of his primary objectives: Landing on a team that is ready to contend with Miami, Boston, Orlando, LA, Dallas, SA, Chicago, etc.

TMS wrote:

Andrew wrote:

TMS wrote:why would he want to wait to sign as a free agent then if he already knows contracts will be rolled back regardless? why not just try to be traded this year if he's not happy in Denver?

Possibly because he can pick the team he wants to go to, and the team will be stronger (not have to deplete the roster to acquire him). If his goal is to be competitive with the Heat, I think that would be a consideration.

he certainly has a say in what team he goes to because any team that trades for him will not do so unless he's willing to sign a contract extension... since he now knows that contracts will be rolled back, there's no reason for him to wait on signing one.

if his goal is to be competitive with the Heat, then sure he could wait & sign with the Knicks this summer... or he can sign with the Rockets or Oklahoma City Thunder & be competitive with the Lakers... or he can try & force a trade to the Magic or Hornets & play with other superstars just like he could if he forced a trade to the Knicks... Carmelo has many options... signing with the Knicks this summer is only one of them... i don't see how the contract roll backs increase our chances of landing him in any way.

if u want to increase our chances of landing Melo as a free agent this summer, then the best thing to do would be to trade our young players for CP3... but guys were against that idea too... in the end, unless Gallo, AR or Wilson turn into stars this season, then our chances of attracting Melo aren't as good as some people think IMO.

You are right. Denver can get a better deal with OKA but you think LA LA wants any part of that?

If you read allt he rumors, the champagne toast at his wedding by Chris Paul, it all adds up he wants to be a knick.

Magic have expiring Vince. What else can they do that does not reduce the Magics roster? Think ANyone wants Rashard? Can Magic handle another long term deal on top of what they have?

What does Lakes have that Denver wants? Pau? Kobe? Bynum is legit, but he is always hurt? Odom? Doubt that.

Think Melo wants HOrnets? Think Depleted by trade Hornets in Depleted by natural disaster just to play there with an ownership group that can't fund a championship roster? La La want any part of that? NOt unless she goes into that Cajun Vampire thing.

Nets can do it but nets give up Favors and two no 1's is crazy. Plus, what juice does Nets have to get elite after the trade? Nets give up 2 picks and bring in Melo so they have a core of Harris-Lopez-Melo.

Not bad mind you, but He leaves a beter team in Denver for that.

No sure thing if he comes here even with Free agency because our yoots have to step it up.

Thats the fun of it. WHAT IF'S..........What if our yoots play up? What if AR becomes good? Gallo morphs into Peja? Fields into a Battier-Farmar-Kidd-Jeter-Doug Christie kind of good player?

I stoked Donnie has found the Moz and Field! Two starters from thin air!!!

No, they are not all pro, but they have potential and you gotta have that to rebuild.

Rebuild has its suprises and disappointments.

TMS wrote:

itchetrigr wrote:trade for melo at the right price I say, we strip our team down to bare bones we're back to square one, two stars with no talent or depth within the team with DW trying to figure out how to flesh out the rest of the roster. not a position we wanna be in when we're short a 2012 pick.

what is bare bones to you? if u can get Melo while still keeping at least 1 of Gallo, AR or Wilson & either Fields or Douglas, do u think Amare, Melo, Felton, Gallo/AR/Wilson, Turiaf, Azabuike, Walker, Mozgov & Fields/Douglas is a bare bones roster? personally i think that's a pretty significant upgrade over what we have now.

Word, it's an upgrade, but it leaves us with very little flexibility to improve the team beyond there. Whereas a newly signed FA Melo would leave us with oodles of options to further improve, notably by trading the assets we didn't trade for Melo to acquire a third star (e.g., CP3, Williams) to complete our roster. Maybe we even still keep one or two of our high ceiling yoots, too.

You're right that my plan is riskier. But sometimes you gotta play the hand that sets you up best in the long-term instead of going for the more sure thing. Still, if we could keep Gallo/AR, Douglas and Fields, I'd probably be inclined to pull the trigger now.

We should give up Gallo OR AR, Chandler, Curry, $3mil and our 2014 to land Melo. But not ANYTHING more. Doubtful that the Nuggs will like that deal unless it's the second week of February. Even then, I'm not so sure.