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NBA LABOR PAINS II: WHAT'S IN THE REPORTED DEAL?
Published June 21, 1995
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).