Posts Tagged ‘Collective Bargaining Agreement’

How New CBA Changes Will Impact the Miami Heat

December 16th, 2016 4 comments
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When the NBA’s new collective bargaining agreement becomes official, benefits should abound for both players and teams. Minimum salaries, rookie-scale contracts, the mid-level exception, the bi-annual exceptions, and maximum salaries are all increasing, which should placate most players. Various rules will be implemented to entice players to remain with their existing teams, which should placate most teams.

(For full details on all the changes in the new CBA, clink this link.)

But all those changes do come at a consequence – it will be more difficult for teams to rebuild through free agency, teams like the Miami Heat.

The Heat is, as president Pat Riley declared, a rebuilding team.

But Miami has compiled a solid core of multi-talented youngsters — in guards Tyler Johnson and Josh Richardson, forward Justise Winslow, and center Hassan Whiteside — from which to work. And it has a strong lead guard in Goran Dragic to spearhead the charge.

In his first season, Winslow showed promise as a defender. But his offense at times proved to be so limited that defenders constantly sagged away from him, often effectively relegating the Heat to playing four-on-five basketball. If he improves his shooting, he could quickly become one of the Heat’s most vital players. If he doesn’t, his future as a starter (or even on this team) could quickly be jeopardized.

Imagine, for a moment, a Dragic – Johnson – Richardson – Whiteside four-man unit.

In an offense system designed to capitalize upon it, what was once a shocking inability to space the floor – predicated largely on the always imperfect backcourt tandem of Dragic and Wade — could now be considered a strength. And depending upon where Richardson – who led the entire NBA in three-point shooting percentage after the All-Star Break, at 53 percent – and Johnson – who shot 41 percent on three-pointers last season (excluding heaves), despite often being miscast on offense as a point guard, which has continued on this season at full detriment to his development — level off with their shooting, a potentially big one at that.

That type of shooting could provide Whiteside — now a franchise cornerstone with his four-year, $96.4 million contract secured – the much-coveted floor-spacing into which to maneuver.

At 7-feet, 265-pounds, and with a ridiculous 7-foot-7-inch wingspan, Whiteside alters the geometry of the game. He’s not at all a back-to-the-basket big — and the Heat is doing the offense a huge disservice by treating him as such — but he can a huge initiator of offense, whether or not he ever even touches the ball. He hasn’t yet mastered the art of either the pick or the roll, but he has the tools to become of the best roll men in the NBA. And, even if not, his mere presence in the paint sucks in defenses with more force than a Dyson. That yields tons of garbage points and offensive rebounds for him, and open shots for others.

This Heat team may not be showing it on the court thus far this season, but it has the potential to be fast in transition and to capitalize upon a type of floor spacing in the half court it hasn’t had in quite some time.

Imagine what Dragic, a relentless attacker of the rim, and Whiteside, a dominant interior presence, could do in an offense that spaced the floor around them. Is it so preposterous to envision a constant stream of Whiteside pick-and-rolls, and swished corner three-pointers when defenders rotate away from Heat shooters to try to stop it?

Is it so preposterous to imagine that with Whiteside down low; Richardson and Johnson to space the floor around him; and Dragic’s speed and ability to break down a defense; that the team could develop into be a force with which to be reckoned, if they’re able to add a star player or two — perhaps a power forward to replace the unfortunately departed Chris Bosh, a small forward that would allow the Heat to stagger Johnson and Richardson, or both?

The organization has maneuvered around various salary cap issues in order to maximize its free agency options to achieve that goal. The summer of 2017 will be a particular emphasis, with the Heat able to begin the process of removing the salary of Bosh from its cap sheet on or after Feb. 9, 2017 and the salary of Johnson set to soar the season thereafter.

(For full details on Bosh’s contract and its impact on the Heat’s salary cap situation, including potential cap relief and a possible return of his salary to the Heat’s cap sheet in the seasons thereafter, click this link.)

But the new agreement, when ratified, will have several implications for the Heat in pursuit of its desired summer of 2017 rebuild.  Read more…

NBA, Players’ Association Reach Agreement on New CBA

December 14th, 2016 1 comment
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The NBA and the National Basketball Players Association jointly announced Wednesday that they have reached a tentative deal on a new Collective Bargaining Agreement (CBA), pending ratification by both team owners and the league’s players.

In order to give both sides enough time to review the terms of the agreement, hash out a new CBA, and hold their respective votes to ratify it, they have agreed to extend their mutual deadline to opt out of the existing CBA from Dec. 15, 2017 to Jan. 13, 2017.

Ratification of the deal is, at this point, nothing more than a formality. In the meantime, however, a term sheet containing the key terms of the agreement has been distributed. According to that term sheet, the following changes to the current CBA will be made:
Read more…

NBA Lockout Appears Inevitable

April 16th, 2011 No comments
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This Miami Heat team is positively thrilling. And while they don’t enter the playoffs tonight without flaws, they also have a legitimate shot at marching through the Sixers, Celtics, and Bulls all the way to the NBA Finals. Yet thanks to the squabbling of millionaires and billionaires over how to divide a $4 billion industry, this may be the last time for a long time to enjoy it.

Negotiations surrounding a new NBA collective bargaining agreement to replace the current six-year deal that expires on June 30 are not just in a stalemate. They’re turning nasty. A lockout seems inevitable. And it could last a while. It could wipe out the entire 2011-12 season.

The information, misinformation, accusations and counter-accusations are flying so fast and furious that you need an accounting degree and a decade of practical experience under your belt to actually be able to make sense of it all.

The two sides remain deeply divided over what percentage of revenue the players should receive and how owners should share their money.

Players currently receive not less than 57% of every dollar generated by the NBA in salaries and benefits. Players have no costs. Every dollar they make, they get to take home (excluding withholding taxes, of course).

Owners need to net their 43% share of revenues against all the costs of fielding their teams. According to Commissioner David Stern, the NBA will lose roughly $300 million this season. That’s actually better than the $340 million in losses last year and even better than the $370 million in losses the year before that. Stern has also spoken of losses of at least $200 million in each of the first three seasons of the current agreement.

That’s $1.6 billion in losses in six years. That’s huge! And the league has sent both audited financial data and tax returns to the player’s association to substantiate the losses.

The NBA is claiming the business model is broken.

Owners are seeking a complete overhaul of the league’s financial system, and have submitted proposals to the players that feature a hard salary cap, rollbacks to existing player salaries, shorter contract lengths, reduced annual raises, and the reduction of the players’ share of revenues from the current 57% to less than 40%.

But the players disagree with the story the numbers tell.

The players contend that the vast majority of the so-called losses is the result of creative accounting and tax loopholes. They contend that only a small number of teams are suffering, and that their problems can be addressed primarily through enhanced revenue sharing. Read more…