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SUITS AGAINST THE NBA SALARY BEGINNING TO PILE UP
Published October 25, 1994
Two NBA players, the Warriors' David Wood and the Timberwolves' Howard Eisley, sued the NBA in Federal Court in Newark, NJ, yesterday, alleging that the league's salary cap was "artificially reduced this season" by $2.75M per team. The suit contends that the NBA lowered the players' share of revenues by some $74M, "anticipating a contribution to a players' pre-pension benefit plan." But since plan was "terminated by the union" last June, the two players contend that the money was "improperly" returned to team owners. The players are seeking an increase in the cap of approximately $2.75M per team to account for the $74M "allegedly kept by the league." Attorney Jeffrey Kessler, who represents both players, said because of salary-cap limitations claimss, his clients had to sign for the league minimum (PHILADELPHIA INQUIRER, 10/25). NBA attorney Jeffrey Mishkin said that no contribution was made to the players' benefit plan in '93-94 because salaries exceeded 53% of defined gross revenues (ATLANTA CONSTITUTION, 10/25).