NBA salary cap
As a salary cap (English for salary cap ) is called in the NBA, the salary cap, which may issue any team for players.
This limit changes each year and depends on the total income of the league last year. In the season 2011/12 the salary cap per team is at $ 58,044,000. He remained unchanged from the previous season. As in other sports, this control is to prevent financial stronger teams thereof, to commit all the stars of the league. So should the league in total remain exciting and varied.
- 5.1 luxury tax from the 2013-14 season
History
In the mid- 1940s led the NBA salary cap, a one, but this was abolished after only one year. Over the next four decades, there were no salary restrictions in the NBA. Only in the 1984/85 season it came to the re- introduction of the salary cap in its present form. This season, the teams were allowed to spend a maximum of $ 3.6 million on player salaries. The NBA was the first North American professional leagues, which introduced a salary cap.
Type of content restriction
There are several variants of a salary cap. So absolute limits that can be exceeded under any circumstances apply in the NFL and the NHL (hard caps). In the NBA, there are, however, numerous exceptions, among which include higher overall salaries to be paid (soft caps). This scheme was chosen to allow the teams to keep their own players, even if the limit is exceeded thereby. By binding the player to their club and the binding of the fans according to experience improved and thus increased overall sales of the NBA.
Collective agreement
Between the NBA (represented by the Stewards and the 30 team owners ) and the players' union of the NBA, a collective agreement is concluded (English Collective Bargaining Agreement, CBA short ). In this all the rules to the players contracts, transfer modalities, taking distribution, Drafts, the salary cap and other details are taken. In June 2005, completed in 1999 collective bargaining agreement ran out, so it came to new negotiations. After similar negotiations in the NHL had led to long-lasting strike of 2004/ 05, it came in July 2005 to a quick agreement. The contract ran until the end of the 2010/11 season with an option for a one-year extension by the league, but this was not noticed. The changes between the two collective agreements were marginal in relation to the salary cap. As compensation for the controversial increase in the minimum age of the players these were a slightly higher proportion of revenue the league. In addition, the maximum wage for individual players fell slightly. Because since July 1, 2011, there is no collective bargaining agreement between the players and the Klubesitzern, the league imposed a " lockout ", which lasted 149 days, and the 2011/2012 season shortened to 66 games.
Exceptions
From the design of the salary cap as a " Soft Cap " there is a need to define the exceptions under which a team can sign a contract with a player, even where this exceeds their salary cap.
Rule for the average wage
A team can sign a contract with a player who receives the average NBA salary, even if it means the salary cap of the team is exceeded or has been exceeded before. The average salary in the NBA was 5.854 million dollars in the 2009/10 season. Either individual free agents are committed to the average wage, or more free agents whose total salary shall not exceed the amount of the average wage. This regulation does not every team that exceeds the salary cap at the beginning of the season break, may make use of. Examples of the application of this rule are the obligation of Antonio McDyess by the Detroit Pistons in the summer 2004 or the obligation of Ron Artest by the Los Angeles Lakers in the summer of 2009 with the new collective bargaining agreement negotiated in December 2011, some changes were introduced. For teams, which are located under the luxury tax threshold, there is an average salary exception (Mid- level exception) in the amount of $ 5,000,000 in the first year of the contract and with a maximum length of 4 years. For teams over the luxury tax threshold, there is this exception in a stripped-down version with $ 3 million salary in the first year and a maximum length of three years. To this was added a third exception for teams who even are under the salary cap and can not use the two exceptions mentioned above: For teams like their space allowed to use under the ceiling and in addition one or more players for 2.5 million annual salary over a maximum commit two years. These three exceptions are 2012/2013 festgeetzt until the end of the season in height and only then increase annually by 3 %.
Two - year rule
The two- year rule allows a free agent to a starting salary of 1.672 million U.S. dollars (as of 2009/10 ) to commit for up to two years. As the rule for the average wage may include the two- year rule between different players are divided. A salary increase may not exceed 8% per annum. An example of the application of this rule is the obligation of Karl Malone by the Los Angeles Lakers before the season 2003/04.
Rookie Rule
Regardless of the excess of the salary cap, a team is allowed ( rookie salary depending on the draft position ) undertake in the first draft round is always a rookie to the usual Rookie Scale Salaries.
Larry Bird rule
Probably the most well-known exception rule is named after the player Larry Bird. The Boston Celtics were the first team, where it was allowed to exceed the salary cap to complete with their players Larry Bird a new contract. Free Agents who come for the application of this rule in question, are in the collective agreement referred to as qualifying veteran free agents or Bird free agents. The scheme allows an NBA team to exceed their salary cap to offer one of their own free agents a new contract, which can go up to the maximum salary. Thus, a player can become a Bird free agent, he must have played at least three years in a row for the same team without having fired or changed the team as a free agent. The design of the contracts, such as consisting of three consecutive one-year contracts or a three-year contract is irrelevant. If the Bird free agent getraded to another team, he will retain his rights, so his new team from the Larry Bird rule continue to take and break the salary cap and can keep pushing. Contracts under this Rule may be completed up to five years. Due to the current collective agreement, it is also for players with Bird rights unattractive to sign a new contract before the old contract expired because the maximum content of an extension is lower than a new so-called maximum contract.
Early Bird rule
The early-bird rule is a weakened form of the Larry Bird rule. Free Agents to which this rule can be applied, early qualifying veteran free agents are called. After two consecutive seasons without dismissal or exchange as a free agent, the team can offer its own free agent a new contract to changed conditions, according to the player either 175% of his old salary or the NBA average salary receives, depending on which of the two amounts is higher. Early Bird contracts must be for a period of at least two and up to four seasons. The Early Bird rights are forfeited if a player is traded to another team. However, this remains the player reserved the right to appeal against a concern him trade his veto.
An example of this is the refusal Devean George to agree to a trade by the Dallas Mavericks to the New Jersey Nets in the 2007/ 08 season.
Non -Bird - rule
Free agents that are suitable for the application of the Non -Bird - rule are called the collective agreement non-qualifying free agents. By this is meant that they qualify for either the Larry Bird rule nor for the early bird rule. According to the Non -Bird control teams can sign a new contract with their own free agent, which guarantees the player either at least 120% of the previous wage or at least 120 % of the defined by the NBA minimum wage. The highest of the two amounts is selected for this purpose. Contracts under this Rule may last up to four years.
Rule for the minimum wage
A team can sign a player for up to two years for the NBA minimum salary even when past their salary cap. In a 2- year contract, the player receives the second year the minimum wage this season. No bonus may be paid by contract for the contract. In a trade of the player who obtains the minimum wage, the regulation and therefore the contract for his new team remains. There can be any number of players committed under the cloak of this exemption.
Trade Rule
Assuming that a team a player # 1 for a player # 2, the content of which is less than that of player # 1, eintauscht so may Affected team use the salary difference within one year for other trades. This scheme is especially applicable when draft picks ( right to vote in the NBA Draft ) be traded directly against another player. Since draft picks have no salary value, the only way to compensate for the content of Trade Rule in the application. Furthermore, this rule can be used to compensate for the loss of a free agent by the affected by the loss of a contract with his team FreeAgent closes, the player then trade them and so receives a financial leeway for future players commitments. This regulation does not apply to trades involving more than two players are involved, although further payments or draft picks are allowed as part of the trade. An example of the application of this exception is the obligation of Lamar Odom by the Dallas Mavericks, who had previously sent Tyson Chandler to New York.
Rule for injured players
This provision allows a team that has already exceeded the salary cap to engage a replacement at a reduced price for a player unable to work. For the purposes of this rule, the expected downtime by a physician selected by the NBA must be confirmed. The maximum content of the replacement player is either 50 % of the salary of the injured player or the average wage for teams under the luxury tax threshold, whichever of the two amounts is smaller.
Although freedom of each team, to oblige you with a derogation several players, however, it is not possible to combine several rules for the obligation of a single player. In the 2009/2010 season Trevor Ariza was just taken over this exception to the Houston Rockets under contract. Since 2011, the pledged or as a substitute may be required over a year. Previously, up to 5 years were possible.
Luxury tax
The numerous exceptions, it is a team possible to exceed the salary cap almost unlimited. In order to still keep the teams of the NBA demands a luxury tax called tax if the salary cap is significantly exceeded. The amount by which the teams may cover the salary cap without having to pay the luxury tax is determined in a complicated formula. For every dollar paid in excess of this tolerance limit, on player salaries, a team had to pay another dollar to the NBA. While most teams to exceed the salary cap, there were very few outside the tolerance limits. In the season 2005/ 06 this amounted to $ 61.7 million. The New York Knicks are the last few years, the team with the highest payroll expenses. In the season 2005/ 06 this amounted to $ 124,000,000, an increase of 74.5 million over the salary cap and 62.3 million, above the tolerance range. This amount had James L. Dolan, the owner of the Knicks, transfer to the NBA. All paid luxury taxes are divided among the teams that had to pay anything. So these teams often flow to a few million, which contribute to the improvement of opportunities financially weaker teams.
In summer 2005, the new collective agreement was supplemented by an amnesty clause. This gives each team a unique opportunity, just to dismiss a player and so exclude it from the calculation of the luxury tax. This decision is only relevant for the calculation of the luxury tax. The team must continue to pay the dismissed player his salary in full and it is still included in the calculation of the Salary Cap. The team may during the term of the terminated contract not renewed commitment to the player. Otherwise, the player is like any other redundant player is dealt.
The amnesty clause was derisively as " Allan Houston Rule " since Allan Houston was considered the symbol of a free agent, which was given before the introduction of the luxury tax, a dramatically inflated contract. However, the New York Knicks decided against Allan Houston and released instead Jerome Williams. Also the application of the amnesty clause, Michael Finley, Brian Grant and Derek Anderson were dismissed. While Williams and Grant their careers just ended, and Finley Anderson switched to other teams while they continued to receive high wages by their old teams.
In the new CBA (2011/2012), there was again an amnesty clause, which is effective only for players who have signed their contracts before the season 2011/2012. Among other things, Gilbert Arenas, Charlie Bell Baron Davis and Chauncey Billups this clause fell victim. So laid-off players may be required by the teams under the salary cap then in a bidding process. If there are no takers, the affected player is a free agent and may vary from each team will be required ( minimum salary ).
The luxury tax is calculated up to the end of the season 2012/2013 as before ( $ 1 for a dollar ). Then tightened them as follows:
Luxury tax from the 2013-14 season
Explanation:
The increased rate applies to teams who have already paid in the four previous years luxury tax. Not more than 50 % of the revenue raised will be distributed to the teams that had to pay any additional levy. What should be done exactly with the remaining 50 % is not explicitly provided in the current CBA.
Examples:
Has an NBA team that does not fall under the increased tax rate, player salaries, which are the sum of 7 million over the luxury tax threshold, it must Dollar per dollar for the first 5 million 1.50, ie $ 7,500,000, and pay for the remaining 2 million $ 1.75 per dollar. Overall, in the example, $ 11 million luxury tax would be so payable, face which only $ 7,000,000 in salaries.
Another NBA team for 5 years exceeds the luxury tax limit. Now the players' salaries will be around 18 million above this limit. As a result, 12.5 million are due to luxury tax for the first $ 5 million. The next 5 million would be incurred $ 13.5 million of tax. These would then 17.5 million for the third tranche of 5 million and another 12.75 million for the last 3 million. Overall, such a transgression would cost 56.25 million in luxury tax alone.
In the long run it is so unattractive even for financially stronger franchises to permanently exceed the luxury tax threshold far as the advantage of theoretically better players facing a disproportionate financial burden.
Development
Except for the seasons 2002/ 03, 2009/10, 2011/12 and 2012/2013 the salary cap has been raised in each year. The following diagram shows the development since the introduction of the salary cap in 1984.
NBA salary cap in U.S. dollars