Here is some interesting reading to gain some perspective of NBA/player relations over the years:
5. What's the history of the CBA? How long has the current CBA been in effect? When will it expire?Bob Cousy began to organize the NBA players in 1954, although the league refused to recognize the union until 1957. A near strike at the 1964 All-Star game forced the league to adopt a pension plan. The first CBA was established in 1970, and new agreements followed in 1973, 1976 and 1980. The 1976 CBA coincided with the settlement of the "Oscar Robertson" suit, which was filed by the players association in 1970 to block the NBA-ABA merger. The 1976 agreement also provided limited free agency through the elimination of "option" clauses that bound players to teams in perpetuity.
In 1983 the parties agreed to share league revenues. The new agreement also instituted the modern salary cap, which went into effect in 1984. When this agreement expired the players brought an antitrust lawsuit, resulting in the "Bridgeman" agreement which brought unrestricted free agency, reduced the draft to two rounds, and added anti-collusion provisions.
Another antitrust lawsuit ensued in 1994 following the expiration of the 1988 CBA, challenging the salary cap, college draft, and right of first refusal provisions. The parties eventually reached a "no-strike, no-lockout" agreement that allowed the 1994-95 season to be played.
The parties came to terms on a new agreement in 1995, but the players tabled a vote and instead filed for union decertification. The league responded by imposing a lockout. The parties quickly came to an agreement, and the players voted against decertification. A new six year agreement was ratified which lifted the lockout before any games were missed, although the agreement was not actually signed until 1996.
The NBA exercised its option to terminate the 1995 CBA following the 1997-98 season, eventually imposing a lockout which took effect on July 1, 1998 and resulted in the cancellation of the start of the 1998-99 season and the 1999 All-Star weekend. The parties reached agreement on a new six-year agreement in early 1999, just in time to salvage a minimal 50-game season. The new agreement introduced maximum salaries, the mid-level exception, and the escrow and luxury tax systems. The league invoked its option to extend this agreement through the 2004-05 season.
The NBA and NBPA ratified the current agreement in July 2005. It expired at the end of the 2010-11 season. The league had the option to extend it through the 2011-12 season, but elected not to do so.
The CBA may be terminated early under certain conditions:
Certain types of collusion (Players Association may terminate).
National TV revenue drops significantly in the next television agreement (league may terminate).
Certain "force majeure" events (such as war or terrorism) make it impossible or economically impractical for the league to fulfill the agreement (league may terminate).
Certain provisions of the CBA are struck down in court (either side may terminate).
8. What percentage of revenues do the players receive?
Contracts are individually negotiated between players and teams, and several factors control the amount each player can receive. Collectively, the players are guaranteed to receive at least 57% of revenues in salaries & benefits. If it's ever less, the league cuts a check to the Players Association after the season for distribution to the players.
There is also an escrow system that helps to limit the money the players receive to a specific percentage of revenue. See question number 15 for details.
9. Has there always been a salary cap?
It may surprise you to learn that the NBA first had a salary cap in 1946-47, its first season. The cap that season was $55,000, with most players earning between $4,000 and $5,000. Star player Joe Fulks earned $8,000, and Tom King earned a league-highest $16,500 for his combined duties as player, publicity director and business manager for the Detroit Falcons.
The "modern" NBA salary cap began in 1984-85, at $3.6 million. It made steady but gradual increases of around $1-2 million each season until 1994-95, when it was $15.964 million. Armed with a big TV contract from NBC, the salary cap jumped to $23.0 million in 1995-96, and increased to $26.9 million in 1997-98, the last season of the 1995 CBA (a 747% increase in 13 years). The ABC/ESPN TV contract, which took effect with the 2002-03 season, provided $4.6 billion over six years, but less in 2002-03 than NBC paid in 2001-02. As a result, the salary cap went down for the first time ever in 2002-2003.
13. What is included in Basketball Related Income (BRI)?
Basketball Related Income (BRI) essentially includes any income received by the NBA, NBA Properties or NBA Media Ventures. This includes:
Regular season gate receipts
Broadcast rights
Exhibition game proceeds
Playoff gate receipts
Novelty, program and concession sales (at the arena and in team-identified stores within proximity of an NBA arena)
Parking
Proceeds from team sponsorships
Proceeds from team promotions
Arena club revenues
Proceeds from summer camps
Proceeds from non-NBA basketball tournaments
Proceeds from mascot and dance team appearances
Proceeds from beverage sale rights
40% of proceeds from arena signage
40% of proceeds from luxury suites
45% - 50% of proceeds from arena naming rights
Proceeds from other premium seat licenses
Proceeds received by NBA Properties, including international television, sponsorships, revenues from NBA Entertainment, the All-Star Game, the McDonald's Championship and other NBA special events.
Some of the things specifically not included in BRI are proceeds from the grant of expansion teams, fines, and revenue sharing (e.g. luxury tax).
11/16/2011 5:43 PM