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Report: Owners move off demand for hard salary cap, sort of

Sep 27, 2011, 10:58 PM EDT

National Basketball Association commissioner David Stern answers questions from members of the media regarding failed contract negotiations between the NBA and the players association in New York Reuters

For the NBA players union, the idea of a team-by-team hard salary cap — as is seen in the NFL and NHL — was a “blood issue.” They saw it as a way owners were trying to keep down salaries and force more non-guaranteed contracts. Some owners were insistent on a hard cap, and that has reportedly stalled out past negotiations.

But with the 11th hour to save the start of the season approaching, the owners reportedly have moved off their hard cap demand. Well, technically.

Adrian Wojnarowski at Yahoo Sports broke the story (which has since been confirmed by others).

The owners proposed at Tuesday’s negotiating session an idea similar to the current system that allows teams to pay a luxury tax for going over the cap. Only, now there would be ultra-punitive measures against higher-spending teams. The current system has teams pay a dollar-for-dollar tax for exceeding the cap….

The owners’ proposal on Tuesday “would still have the affects of a hard cap,” one source with knowledge of the talks said.

This is something suggested earlier to PBT by someone close to the talks — there are ways to call something a “soft cap” but essentially make it a hard cap by making the penalties for going over it so severe.

In the previous labor deal (the most recent year), the salary cap was $58 million but the luxury tax was set at $70 million and teams had to pay a dollar-for-dollar tax. That didn’t deter teams like the Lakers, which had a payroll in excess of $91 million before the tax kicked in.

A system could be set up where the tax gets gradually higher — $2 for $1, $3 for $1, etc. — the more a team spends, in effect putting in a much harder cap.

The two sides went their ways to think about this, and it could potentially be a breakthrough on the question of the next salary cap system.

There seems to be a sense that Wednesday could be a big negotiating session (although we’ve heard that before). If the two sides fail to find a lot of common ground on the system, this could fall back to an ugly stalemate for a while.

Even if there is some agreement on the cap system, on the bigger issue of how to deal with the split of “basketball related income” (BRI) the two sides remain far apart, Woj reports.

The owners didn’t budge on a desire to change the basketball-related income percentage (BRI) to a split that takes the players from 57 percent to the mid 40s, sources said. The players had offered to drop from a 57-43 split to 54-46 at a meeting last week in New York.

That is the bigger issue, the bigger sticking point. And until one side moves significantly on that issue, there will be no labor peace in the NBA.

  1. charlsyc - Sep 28, 2011 at 4:53 AM

    Just get the deal done and start the season in time greedy nutheads!

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