The NBA and NBPA announced late last night that they
renegotiated the terms of their June 21 collective bargaining
agreement to eliminate the proposed luxury tax. Other new
provisions include: creation of a $1M exception for teams over
the cap to sign free agents; restoration of the exception that
allows teams to replace injured players at 50% of the injured
player's salary up to the average player salary; and, addition of
a modified Larry Bird exception for players completing two
seasons with the same team. Both sides also agreed that if the
NBA pays out well in excess of certain agreed upon percentages of
basketball related income, the league can reopen the deal or
receive a limited adjustment to the cap, after the third year of
the agreement. NBA Commissioner David Stern: "Although this new
agreement poses greater risks for our owners than the first deal
did, I will urge them to ratify it in order to ensure that our
tremendous growth continues and the 1995-96 season is played in
its entirety." NBPA President Buck Williams: "We took very
careful account of our membership concerns with certain aspects
of the June 21 agreement and we're confident that this new
agreement fully addresses those concerns -- and insures our fans
that the 1995-96 season will start on time" (NBA).
OTHER TERMS OF THE DEAL: The salary cap would rise from
$15M to $24M in the first year of the agreement, and to $32M by
'00; the league-wide average salary would rise from $1.7M now to
$3M in the final year of the deal; a cap would be placed on
rookie salaries based on the average salaries received by the
picks at each position over the previous seven years, with a 20
percent raise allowance. Rookie salaries would have a three-year
limit, after which players become unrestricted free agents
(AP/S.F. CHRONICLE, 8/9).
FROM THE UNION: NBPA Exec Dir Simon Gourdine: "We know there
is still a lot of work that needs to be done. We need to prove
to our players that this is a contract worthy of their support"
(DALLAS MORNING NEWS, 8/9). Williams: "Finally! I've done my
job. I'm just happy we finally reached a revised agreement"
(Portland OREGONIAN, 8/9). More Drexler: "Everything has been
increased from the last deal. The cap continues to rise and
there's more free agency"(L.A. TIMES, 8/9).
FROM THE LEAGUE: Stern: "Our reaction is that this is a
fair deal, an improved deal, and we invite all players to join us
enthusiastically. The wiser course is the one we took. ... The
key to this is trying to have a season. The scorched earth
policy poses too much of a risk" (DALLAS MORNING NEWS, 8/9).
More Stern: "Our indications are that it won't be a difficult
sell. We don't think it's going to be a problem" (SAN JOSE
MERCURY NEWS, 8/9).
NOT A DONE DEAL: Whether the new deal ever takes effect
"likely will be determined by [the] decertification election"
scheduled by the NLRB for Aug 30. and Sept 7, according to Mark
Asher of the WASHINGTON POST. Asher: "In effect, it will serve
as a referendum on the deal." Antitrust lawyer Jeffrey Kessler:
"At this point for the union to endorse a deal without a mandate
from the players is only going to help the owners. It's not
going to advance the cause of labor peace" (WASHINGTON POST,
8/9). More Kessler, before the announcement: "If they say
they've got a deal, it's not going to matter because it will be
rejected by a majority of the players. Unless a miracle occurs
with this new offer, we'll go ahead with decertification. ... If
it goes to court there will be no disruption to the season."
(CHICAGO TRIBUNE, 8/9). Agent Steve Kauffman: "The deal is
still lousy for the players. It leaves too may givebacks"
(Portland OREGONIAN, 8/9).
AN ACADEMIC PERSPECTIVE: Kenneth Shropshire, professor of
legal studies at the Univ. of PA: "A lot of people want
Gourdine's job and this is a good time to put a target on his
back and go after him. Maybe he's craftier than we all realize."
Allen Sanderson, professor of economics at the Univ. of Chicago:
"Basketball tends to have more 'haves' versus 'have nots' than
any of the other sports. Unions in that kind of situation have
more problems keeping people together and unified" (Terry Armour,
CHICAGO TRIBUNE, 8/9).
