From the "highest-paid superstars to the lowest-paid
rookie," NBA players will "lose" 10% of their paychecks in
2001-02 due to the escrow tax that was agreed to by the
players during negotiations to end the '98-99 lockout,
according to the AP's Chris Sheridan. The tax "would be
triggered only if" players received more than 55% of
basketball-related income (BRI), but "projections" show the
players will receive 64% of BRI this coming season.
Overall, the players "will be returning" more than $150M to
the owners in 2001-02, and the tax will "stay in effect" for
the 2002-03 and 2003-04 seasons. Sheridan notes that
players received $1.38B in salaries and benefits last season
and the median salary increased 19% to $2M. NBPA officials
said that the median salary is up 40% since '98-99, and 76%
of the players are earning $1M or more (AP, 7/26). NBA
Deputy Commissioner Russ Granik: "It's pretty clear the
number of players getting the maximum has pushed salaries up
and the midlevel exception has increased salaries" (Roscoe
Nance, USA TODAY, 7/26). BLOOMBERG NEWS' Scott Soshnick
writes that NBPA officials "are bracing for backlash from
members who either forgot about the tax or didn't know about
it in the first place." Knicks C and NBPA President Patrick
Ewing: "The guys should be happy." Magic G and NBPA
Secretary & Treasurer Pat Garrity said of the 10% tax: "I
think they're [players] going to be really upset when they
fully learn about it. Ten percent of every check is quite a
big chunk." NBPA Exec Dir Billy Hunter said that early next
season, union reps will visit teams "to once again explain"
the escrow system and "remind" the players that it will
start in 2001-02. Hunter, on the CBA: "We've restored the
middle class. The agreement is working" (BLOOMBERG NEWS,
7/26). In Chicago, Ron Rapoport writes, "I'd feel worse for
those NBA players who just discovered they're likely to be
hit with a 10 percent rebate of their salaries back to the
league if the announcement hadn't been made at a union
meeting in Paradise Island" (CHICAGO SUN-TIMES, 7/26).
ROOKIE LEAGUE START: In DC, Athelia Knight writes that
"so far," the four-team National Rookie League (NRL) "is
struggling." Four weeks into its six-week, 13-game regular
season, NRL Founder Bruce Stern said that average attendance
was about 200 in DC, Baltimore, Philadelphia and N.Y. Stern
said that about 100 investors paid from $250 to $50,000 "to
help start" the league, with some corporate support,
including Pepsi. Stern noted that the budget for the first
season is about $300,000 (WASHINGTON POST, 7/26).
