Basically the players association is mad because they feel the timing of this announcement was to drive down the contract offers to the free agents still available. They even threaten to sue if this prediction is wrong (Apparently previous predictions have been incorrect too). Wonder if this all went to roost, if it could piss off the union enough to strike after 2011 year? http://www.nba.com/2009/news/07/08/union.salary.ap/index.html Spoiler Union upset with NBA's salary cap warning to teams Posted Jul 8 2009 8:55PM NEW YORK (AP) -- The NBA players' association is upset with the league over a warning it sent teams projecting a significant decrease in the 2010-11 salary cap. The memo sent early Wednesday morning told teams the salary cap and luxury tax levels are expected to drop, echoing comments commissioner David Stern has made at various times this season. But the union believes the predictions could discourage teams from offering big deals to free agents, who were eligible to begin signing Wednesday. "A memo of this nature can have a chilling effect on the market for free agent and rookie signings," executive director Billy Hunter said through a spokesman. "If it later turns out that the league did not have a good faith basis for making these projections, the NBPA will pursue all available legal remedies, including a treble damages claim for collusion." The NBA didn't consult with the players' association before releasing the memo, and Hunter said the union has no basis to confirm the projections in it. Lawyers for the league and union had been in contact throughout the week to establish the 2009-10 salary cap, which was set Tuesday night at $57.7 million, about $1 million less than last season. "The memo speaks for itself and it was issued to give our teams our best, good faith projections," NBA spokesman Tim Frank said. The league had warned teams in February that the 2010-11 figure might be below this year's, a result of the economic difficulties that Stern said could lead to as much as a 10 percent reduction in revenues next season. The memo Wednesday projects a steeper drop than previously predicted, ranging anywhere from $50.4 million to $53.6 million. Hunter isn't sure, arguing that a large portion of next year's "basketball related income" -- a formula which generally includes all income received by teams through basketball operations and is used to set the salary cap -- is already committed. "On various occasions the NBA has publicly speculated on revenue projections for the 2008-09 season that have since been proven inaccurate," Hunter said. "The salary cap and luxury tax projections for 2009-10 based on these revenue projections have thus likewise been proven inaccurate." The summer of 2010 is expected to feature one of the deepest free agent classes in history, possibly headlined by LeBron James and Dwyane Wade. Half the league could have enough salary cap space to bid on a maximum contract player. With teams wanting to save money for that group, some players have found it tough to land deals this summer. Former All-Star Allen Iverson remains unsigned, as do productive young players such as Paul Millsap and David Lee. The NBA and union are expected to begin discussions this month toward a new collective bargaining agreement. The current deal runs through the 2010-11 season.
The league would love nothing better than the union to strike. Remember it was the league that locked out the players last time. And it was the players union who ended up folding because there are such a large number of players who live week to week, season to season on their NBA salaries.
Perhaps if some of those unsigned FAs they mentioned in the article realized that they are asking for too much money some of them would be signed already. Iverson either needs to retire or stop crying about not starting.
This may be a dumb question, but how do grow men getting paid several million dollars per year spend so much money thta they live week to week on that kind of salary? BYI, Lenny Dykstra filed bankruptcy today.
Some (many?) professional athletes don't seem to realize that a large amount of money is not an infinite amount of money.
let's assume all these players graduated from college. well, they got a college education, not a financial management one. they're actually no different than the millions of average income americans who are in thousands of dollars of credit card debt. i bet over half of the members of this board live beyond their means. the only difference is the amount you earn.
I only have one problem with it.....this means it'll be much harder to deprive players of the 2010 free agent class away from their teams....
The NBA players' association is upset with the league over a warning it sent teams projecting a significant decrease in the 2010-11 salary cap. The memo sent early Wednesday morning told teams the salary cap and luxury tax levels are expected to drop, echoing comments commissioner David Stern has made at various times this season. But the union believes the predictions could discourage teams from offering big deals to free agents, who were eligible to begin signing Wednesday. "A memo of this nature can have a chilling effect on the market for free agent and rookie signings," executive director Billy Hunter said through a spokesman. "If it later turns out that the league did not have a good faith basis for making these projections, the NBPA will pursue all available legal remedies, including a treble damages claim for collusion." The NBA didn't consult with the players' association before releasing the memo, and Hunter said the union has no basis to confirm the projections in it. Lawyers for the league and union had been in contact throughout the week to establish the 2009-10 salary cap, which was set Tuesday night at $57.7 million, about $1 million less than last season. "The memo speaks for itself and it was issued to give our teams our best, good faith projections," NBA spokesman Tim Frank said. The league had warned teams in February that the 2010-11 figure might be below this year's, a result of the economic difficulties that Stern said could lead to as much as a 10 percent reduction in revenues next season. The memo Wednesday projects a steeper drop than previously predicted, ranging anywhere from $50.4 million to $53.6 million. Hunter isn't sure, arguing that a large portion of next year's "basketball related income" _ a formula which generally includes all income received by teams through basketball operations and is used to set the salary cap _ is already committed. "On various occasions the NBA has publicly speculated on revenue projections for the 2008-09 season that have since been proven inaccurate," Hunter said. "The salary cap and luxury tax projections for 2009-10 based on these revenue projections have thus likewise been proven inaccurate." The summer of 2010 is expected to feature one of the deepest free agent classes in history, possibly headlined by LeBron James and Dwyane Wade. Half the league could have enough salary cap space to bid on a maximum contract player. With teams wanting to save money for that group, some players have found it tough to land deals this summer. Former All-Star Allen Iverson remains unsigned, as do productive young players such as Paul Millsap and David Lee. The NBA and union are expected to begin discussions this month toward a new collective bargaining agreement. The current deal runs through the 2010-11 season.
If it's another lock out (i.e. owners the one that stops paying), are the players allow to sign with another league (European)? That's one part of the equation that wasn't there in the years past but I don't know about now. To me, if the owners stop paying, isn't that a breach of contract? Aren't NBA players allow to go to Europe at that point?
