So, here we are. After all the talks and meetings and ultimatums, the NBA made its final proposal. On Monday, the players will analise and vote. If they accept the deal, the season will start on Decmber 15th, with 72 games to be played by each team.
Here’s the deal:
- The biannual exception will be available only to non-taxpaying teams. The NBA will allow sign and trade deals for tax paying teams, on a limited and restricted basis.
- Extend-and-trade deals, such as the one signed by Carmelo Anthony last season, will be prohibited.
- The midlevel exception will be set at $5 million for non-taxpaying teams, with a maximum length between three and four years (alternating annually). The value of the exception will grow by 3 percent annually, starting in Year 3. The Mid-Level would not be available to a team if its use would push them into luxury tax.
- The mini-midlevel exception will be set at $3 million for taxpaying teams, with a maximum length of three years, and cannot be used in consecutive years. Its value will also grow at 3 percent annually.
- A 10 percent escrow tax will be withheld from player salaries, to ensure that player earnings do not exceed 50 percent of league revenues. An additional withholding will be applied in Year 1 “to account for business uncertainty” stemming from the lockout.
- Maximum contract lengths will be five years for “Bird” free agents and four years for others.
- Annual contract increases will be 5.5 percent for “Bird” players and 3.5 percent for others.
- Players will be paid a prorated share of their 2011-12 salaries, based on the number of games played once the season starts, with a 72-game season on the table.
- Team and player contract options will be prohibited in new contracts, other than rookie deals. But a player can opt out of the final year of a contract if he agrees to zero salary protection (i.e., if it is non-guaranteed).
- The Basketball Related Revenue Split will be 50-50, with the NBA locking in salaries and benefits equal to last season for the first two years of the deal insuring the players lose no money in accepting a reduced BRI share.
- The Luxury Tax would be an escalating tax based on tiers over the tax line. The tax will increase for every $5 million spent beyond the established line – starting at $70 million in the first year of the labor deal. Teams would be charged a tax of $1.50 for every dollar over the $70 million tax line. That number increases to $1.75 after $5 million over ($75 million), $2.25 after $10 million ($80 million) and $3 after $15 million ($85 million).
- The Repeater Tax would offer an additional $1 charge to each tax tier for teams that exceed the Luxury Tax more than three times in a five year span. Allowing teams to dip into the Luxury Tax, but penalize teams who stay above the tax line for too long.
- There will be a one-time Amnesty Cut allowed. 100% of this cut will be removed from the Luxury Tax and the Salary cap, however 100% of the cut salary will be paid in full to the player and the value of the cut contract will count towards the BRI calculation.