This is where cap smoothing comes in. A cap spike doesn't change that. If BRI drastically increases all at once, the current model dictates that the cap would follow.
But if both sides agreed, it wouldn't have to. The NBA and its players could agree to spread the necessary growth in the cap over multiple seasons or compromise on an alternative that allocates revenue through some channel other than the salary cap.
This would prevent the cap from jumping drastically in one offseason and disperse revenue amongst the entire player pool more evenly. This, broadly, is what cap smoothing is all about. There are a number of possible forms that this could take. There is no reason the league couldn't agree to make up that difference to the players in form of a end-of-season bonus. So long as the players and owners agree, anything is on the table. The NBA and its players could set the cap at agreed-upon numbers multiple years in advance at a level that might not be as high as it otherwise could be with the idea that those lost short-term earnings would be made up for over time due to sustained and guaranteed growth in the cap.
The players, as a group, could still receive all of the money they are owed. It would just be given to them in ways that wouldn't have such a drastic effect on roster-building and the league's on-court product. In the process, they could ensure a fairer division of this new revenue amongst all of its players rather than a smaller, luckier group of them.
The NBA and player's association have never agreed to use smoothing to artificially decrease the cap If the cap had factored that into its typical model, it would have decreased by tens of millions of dollars. That would have been a disaster for both the players and owners. There would have been no cap space around the league for free agents to be signed with and most NBA teams would have been pushed into the luxury tax. So the two sides came to a solution: rather than calculate a new cap for the season, the NBA kept the cap stable.
The compromise worked. Player movement was hardly impeded. Extensions are growing more and more frequent. Revenue wound up bouncing back faster than expected. Barring something unforeseen, the NBA's broad financial infrastructure is well on its way to returning to normalcy. This guarantees nothing for future negotiations, but it proves that the two sides are capable of working together to solve unorthodox problems. Overall, the NBA has a far more productive and amicable working relationship with its players than most leagues.
That will make these negotiations easier. The union rejected the NBA's proposal to smooth the cap in , and the truth is, we don't fully know why. In , NBPA executive director Michele Roberts was asked about smoothing and claimed that what followed "completely confirmed the correctness of that position. Why in the world would players pretend that the game was not making as much money and therefore have smaller contracts? But what we did to make sure it wasn't just Michele's instinct was hire two separate economists to tell us whether this was something that was going to be of value to our players in the long run.
Why would you do this? The league did. But I didn't see any chorus of support from any of the owners. I thought it was a disgraceful request. Things become a bit messier when we acknowledge that we don't know the details of the NBA's smoothing proposal. The implication here is that the league made an offer that affected players far more than owners, but there is no way of knowing how true that actually was. If the owners proposed a compromise that ended with them taking in more than their allotted share of BRI, the players made a wise choice in rejecting that offer.
Even if they didn't, these negotiations are immensely complicated and involve far more factions with competing agendas than you'd think. Utah Jazz. Chicago Bulls. Pistons' Olynyk knee to miss at least six weeks. Detroit Pistons. Green takes Pels to task after 5 technicals.
New Orleans Pelicans. Thibs benches N. New York Knicks. Ex-Suns employees contacted by Sarver's wife. Phoenix Suns. The Bulls are bringing fun back to Chicago, one dunk at a time. A Two-Way Contract is mostly defined by what it cannot do and who cannot sign one:. It cannot exceed 2 seasons in length. It cannot be extended or renegotiated. It cannot include an option or an early termination option. It cannot contain any bonuses. It cannot be signed after January 15 of any season.
A Two-Way Contract cannot be signed by a player that has or may have during its term 4 or more years of service for example, a player with 3 years of service cannot sign a 2-year Two-Way Contract. Nor can a player sign a Two-Way Contract that would result in the player being under a Two-Way Contract for any part of more than 3 seasons with the same team for example, a player that just completed a 2-year Two-Way Contract cannot then sign another 2-year Two-Way Contract with that team.
These contracts cannot include any compensation protection. Teams must terminate Summer Contracts before the first day of the regular season, unless they have room to sign the player or are able to use the minimum player salary exception. These contracts must i cover 1 season, ii provide for the minimum player salary with no bonuses of any kind or two-way salary without any compensation protection , and iii include an Exhibit 9 to the Uniform Player Contract.
At the time this contract is signed, a team must have at least 14 players under contract without an Exhibit 9. At the same time, no team may have more than 6 players under a Non-Guaranteed Training Camp Contract. These contracts must i cover 1 season ii provide for the minimum player salary with no bonuses of any kind other than the Exhibit 10 bonus without any compensation protection other than in connection with the two-way player conversion option , and iii include an Exhibit 10 to the Uniform Player Contract.
No team may have more than 6 players under contract with an Exhibit These contracts can only be signed on or after January 5 of any season, and cannot extend past the end of the regular season. Terminating these contracts does not require following the waiver procedure. A team can only enter into a Day Contract with the same player twice in any season.
Rest-of-Season Contract — A Rest-of-Season Contract is one that is entered into at any time after the first day of the regular season and only provides compensation for the remainder of the season. These contracts are relevant in that they have unique salary cap implications. Essentially, salary for the last year of a 4 or 5-year contract with a player that is 35 or older is re-allocated over prior seasons.
Salary in this final year is basically treated like deferred compensation and attributable to prior salary cap years.
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