NBA Salary Cap Decreases is mentioned on Yahoo. I wonder what implications it has on Rookies Salaries including Ming.
Well it means that Francis' max contract will be less then the Max contracts signed last year. DaDakota
Does anyone know why they would decrease the salary cap? I dont think they have ever done that before, but I could be wrong.
It's fixed as a total percentage of revinues, with an additional corrective factor to temper it if the actual percentage of revinue is higher than the 'ideal' percentage of revinue. In otherwords, it was lowered my some sort of mathimatical mandate, not on David Stern's whim.
The cap is determined by a certain % of revenue or something that the teams get from the year before. In this case, revenue must have been down, for the cap to go down.
NBA salary cap decreases for first time ever By IRA PODELL AP Sports Writer July 16, 2002 NEW YORK (AP) -- The NBA salary cap is going down for the first time in its 18-year history. The cap, which rose last year by $7 million to $42.5 million, was dropped on Tuesday to $40.271 million for the 2002-03 season primarily because of a $100 million-plus decrease in guaranteed television money. In January, the NBA completed television packages with The Walt Disney Co. and AOL Time Warner Inc. worth $4.6 billion over six years. Its deal with NBC expired at the end of last season. During the first four years of the NBA's current collective bargaining agreement, the average player salary increased approximately 54 percent from $2.6 million to $4 million. Though the average salary decreased last season from $4.2 million in 2000-01, it is expected that the average will rise next season because of scheduled salary increases in long-term guaranteed contracts, free agent signings, and exceptions available under the collective bargaining agreement. The players' union declined to comment Tuesday night. The NBA also announced on Tuesday that the mid-level exception that teams can offer free agents is going up from $4.538 million to $4.545 million. According to the union, players are going to get back $77 million from the NBA, in part because there wasn't a luxury tax assessed to teams because the combined salary and benefits failed to reach 61.1 percent of defined gross revenues. Of the $77 million, players will receive $22 million from the escrow because the percentage was only 60.2. In addition, a provision in the collective bargaining agreement called for salaries to rise at least $50 million, and they fell $43 million short, money that is being returned. The final $12 million, to be delivered in an annuity, is going back to players in new benefits. The minimum team salary for next season will be $30.2 million. Last year, the salary cap was increased from $35.5 million to $42.5 million. The increase of $7 million from the previous year's cap represented the second-largest annual jump since the cap was instituted for the 1984-85 season.
Good! Nice to see the cap working as it should. Memo to players: you guys do really work for the fans and because of the fans........
Now all we have to do is decrease the price of seats and get some free agents we never even dreamed about like Drexler. Then we'll win a championship.
