2. Collective Bargaining in the NBA
Dictates the rules of player contracts
Trades
Revenue Distribution
The NBA Draft
Salary Cap of Players
Roster Size of team players
3. What is the N.B.A
The NBA stands for the National
Basketball Association
The Association was started in
June 6, 1946 in New York City
Headquarters are located in New
York City, NY
The current Commissioner is Adam
Silver
5. Who are the official N.B.A teams?
The National Basketball Association
which bargains with 30 team
owners which include:
Boston Celtics
Brooklyn Nets
Atlanta Hawks
Charlotte Hornets
Miami Heat
Orlando Magic
Washington Wizards
New York Knicks
Philadelphia 76ers
Toronto Raptors
Chicago Bulls
Cleveland Cavaliers
Detroit Pistons
Indiana Pacers
Milwaukee Bucks
Dallas Mavericks
Houston Rockets
Memphis Grizzlies
New Orleans Pelicans
San Antonio Spurs
Denver Nuggets
Minnesota Timberwolves
Oklahoma City Thunder
Portland Trail Blazers
Utah Jazz
Golden State Warriors
Los Angeles Clippers
Los Angeles Lakers
Phoenix Suns
Sacramento Kings
6. NBA BREAKDOWN by Conference
Eastern Conference Western Conference
Atlantic
Central
Southeast
Southwest
Northwest
Pacific
7. Trouble in the NBA
Many NBA teams are consistently loosing money
due to:
Expenses exceed revenue generated
Exorbitant salaries of players
Fans aren’t buying tickets
Bad economy
8. Top paid N.B.A. players in the league
1 Kobe Bryant, SF Los Angeles Lakers $25,000,000
2 Joe Johnson, SF Brooklyn Nets $24,894,863
3 LeBron James, SF Cleveland Cavaliers $22,970,500
4
Carmelo Anthony,
SF
New York Knicks $22,875,000
5 Dwight Howard, C Houston Rockets $22,359,364
6 Chris Bosh, PF Miami Heat $22,192,730
7 Chris Paul, PG Los Angeles Clippers $21,468,695
8 Kevin Durant, SF
Oklahoma City
Thunder
$20,158,622
9 Derrick Rose, PG Chicago Bulls $20,093,064
10 Dwayne Wade, SG Miami Heat $20,000,000
9.
10. Show me the money
Not only do these guys collect big checks but they
also bring in millions in food, entertainment, and
clothing endorsements
This directly impacts owners who do not share in
those huge profits but pay big salaries to keep
their star players who may lead their teams to the
coveted N.B.A. Championship victory
11. What is a Concession
According to the
dictionary there are
two variances of
concessions
One being an
authorization and the
other being a
compromise
12. Concessions made in the N.B.A.
Players moved from a 57-43 revenue split
to about 50-50.
The length of max contracts shrunk
Increase in ticket prices and concession
item, such as food and souvenirs
13. Collective Bargaining Agreement of the
N.B.A.
Consist of :
I. SALARY CAP AND RELATED RULES
II. Escrow and Tax Arrangement
III. Free Agency
IV. Anti Drug Agreement
V. NBA DEVELOPMENT LEAGUE
VI. Miscellaneous
EXHIBIT A (Rookie Salary Scales)
EXHIBIT B (Minimum Annual Salary Scale)
14. Impasse in Contract Negotiations
A bargaining impasse occurs when the two sides negotiating an agreement are
unable to reach an agreement and become hopelessly deadlocked. Typically
an impasse is almost invariably mutually harmful to both sides either as a
result of direct action which may be taken such as a strike or in the NBA
would result in a lockout, as seen in 2011. Negative recourse/action in occurs
resulting in delay in the negotiating of a mutually beneficial agreement
15. 2011 Lockout in the N.B.A.
Method to split revenue: Owners are demanding the institution of a first-ever hard salary
cap, set at $62 million, to roll back salaries by around 33%, or $800 million annually. Players
want to continue the soft-cap system that lets teams exceed the cap when they re-sign their
own players, but have offered to take $100 million in annual cuts. The cap now is $58 million.
- Dividing the loot: Owners want at least a 50-50 split of revenue, although players contend
that the owners’ proposal calls for them to get a 61-39 advantage at the end of a 10-year
deal. Players get a 57-43 split now and want it to continue in a five-year deal.
- What the players get: Owners say their proposal would give players the same $2 billion
they make now in salaries and benefits. Owners contend players’ last proposal would give
them in excess of $3 billion, while players dispute that but refuse to divulge their demands.
- Guaranteed contracts: Owners have come off their demand to eliminate guaranteed deals
entirely. They’re looking to reduce the 6- and 5-year deals to 5- and 3-year deals. Players
want to continue getting 6-year deals for re-signing with their own teams and 5-year deals for
joining a new team.
- Guaranteed annual raises: Players presently get 10.5% if they re-sign with their own teams
or 8% if they go to new teams. Although they haven’t announced their demands, owners want
to slash those to 5% and 3%.
16. What is Contract Ratification
In contract law, the need for ratification can
arise in two ways:
Where the agent attempts to bind the principal
despite lacking the authority to do so
Where the principal authorizes the agent to
make an agreement, but reserves the right to
approve it.
17. Contract Ratification process
1. IDENTIFYING & UNDERSTAND RESPONSIBILITIES OF PARTIES INVOLVED IN
RATIFICATION PROCESS
2. Determine if ratification process is required
3. Begin drafting and finalizing supporting Contracting Officer information
for the “Ratification Package”
4. Staff the package
5. Provide Written Notice of Ratifying Official’s Decision
6. Finalize any issuance of corrective contracting action
7. Distribution to all parties
18. NBA’s contract is ratified for 10 years to
include
The agreement includes a 50-50 split of basketball-related income, a higher
luxury tax with progressive tax rates and the retention of a soft salary cap
system. The maximum length of player contracts will be five years (previously
six) and maximum annual increases in salaries will be 7.5% for teams re-
signing their own players and 4.5% for teams signing other teams' free agents.
On non-economic issues, the league has bolstered its drug program to include
offseason testing, increased penalties for violations involving performance-
enhancing drugs, and blood testing for human growth hormone (HGH) once
the test is validated by a neutral panel of scientific experts.
20. QUESTIONS
WHEN BARGAINING NEGOTIATIONS, WHY DO FREE AGENTS COUNT AGAINST
SALARY?
IN BARGAINING NEGOTIONS, ARE INJURED PLAYERS APPLY TO A TEAM SALARY?
IS THERE A MINIUM AMOUNT EACH TEAM MUST PLAY ITS PLAYERS IN BARGAING
NEGOTIATIONS?
HOW DOES PLAYERS AVOID BEING HELD HOSTAGE BY CRISIS NEGOTIATION?