SBD/21/Leagues Governing Bodies

NBA LABOR PAINS II: WHAT'S IN THE REPORTED DEAL?

     Several outlets list the elements of the deal said to be
agreed upon in principle between the two sides.  In Dallas, David
Moore reports the new CBA "would move toward the owners' desire
for a hard salary cap but retain the right of veteran players to
sign a contract that would exceed the cap" (DALLAS MORNING NEWS,
6/21).  DETAILS:
          LENGTH OF AGREEMENT:  Six years, through 2001.
          SALARY CAP:  The cap would be set at $23M, up from
     $15.9M for '94-95, rising to a projected $32.5M by the end
     of the deal.  Players would receive 57.5% of defined gross
     revenue -- which will now include money from luxury suites,
     int'l TV, sponsorship, novelties, and club seats.  This
     should add $100M to the pool for players' salaries.
          ROOKIE CAP:  All rookies will sign mandatory three-year
     deals and receive the average salary of the player selected
     in his spot over the previous six years.  Rookies will
     become unrestricted free agents after the three years.
          LUXURY TAX & LARRY BIRD EXCEPTION:  The exception which
     allows teams to re-sign veterans above the cap remains in
     place, but the league can assess a tax on teams whose
     collective payrolls exceed 63% of DGR.  Any amount over that
     figure will be taxed 50%, with money to go to a fund for
     teams with low reveues.  The tax goes in effect in '96-97.
     Veterans can get 10% raises regardless of the cap and tax.
          THE DRAFT:  Two rounds through '97, dropping to one
     round through 1998-2001.
          LICENSING:  The final two years of the licensing
     agreement will be scrapped and replaced with a new deal
     guaranteeing players $25M a season.  Projections are that it
     could double by the end of the agreement.
          ALSO:  Veteran contracts limited to seven years.  The
     minimum salaries are $200,000 for rookies and $225,000 for
     veterans (DALLAS MORNING NEWS, 6/21; USA TODAY, 6/21).
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