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SBD/June 25, 2012/Leagues and Governing Bodies
Could NBA's New Salary Cap Rules End Up Hurting Small-Market Teams?
Published June 25, 2012
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LEARNING CURVE: While revenue-sharing "enhancements ostensibly are in place to redistribute the NBA's $4 billion of wealth and help low-revenue teams, many executives are unfamiliar with the criteria and are having difficulty factoring that into their long-term payroll and roster planning." NBA Deputy Commissioner & COO Adam Silver said, "So far based on this agreement, [Mavericks Owner] Mark Cuban's behavior seems to have been altered by the new collective bargaining agreement. The Lakers' behavior has been altered. It's very difficult to predict. It's an extraordinarily harsh tax once it fully kicks in." But Silver added, "Because it's a soft cap, a team has the ability to spend more money than other markets and it puts small markets at a disadvantage. ... The question is whether big-spending teams or large-market owners are willing to spend to go significantly into the tax" (CBSSPORTS.com, 6/22).