Deal near on mid-level salary aspect

[Doc]

NEW YORK -- In one small but encouraging sign in the last-minute negotiations between the NBA and the National Basketball Players Association on a new collective bargaining agreement, a source who has been briefed on the discussions between the two sides said Monday afternoon that the sides are close to an agreement on one "system" aspect that has proven troublesome -- a new, shorter mid-level exception for free agents.

 

Owners have sought a major reduction in the mid-level, one of the key ways that teams over the salary cap are nonetheless able to add players. Implemented in the 1999 CBA after players agreed to accept maximums on player salaries, the mid-level was designed to give non-superstar players a chance at a good payday during their careers, and it has done just that. Tied to the average salary in the NBA, last year's mid-level started at $5.8 million. With annual 8 percent raises, a five-year mid-level contract would be worth $37 million.

 

And while some mid-level signings -- like Detroit's signing of Chauncey Billups in 2002 -- worked out, many other players who've been signed to mid-level deals over the years have not performed as hoped by their teams. And because contracts are guaranteed, teams were locked into those deals for several more years than they'd like. Owners have looked to shorten the mid-level to as few as three years and to limit the overall amount that the mid-level could be used for.

 

http://www.nba.com/2011/news/features/david_aldridge/10/10/encouraging-sign/index.html

[Built Ford Tough]

Per Woj:

 

In previous days, the owners and players agreed on starting the midlevel exception at $4.8 million. Two sides had differed on the length of contracts teams could offer players with the exception, as well as the percentage of annual increase. The players were willing to reduce the maximum length of midlevel deals from five years to four, but the owners wanted the length dropped to three years.

 

Now, they’re close to compromising on a $5 million starting salary with a maximum length of three years.

 

I like this a lt. $5M still enables you to get a decent starter or a nice bench player, but allowing teams to shell out a 5 year contract every 2 years was a bit too much, Reducing it to 3 years while still keeping it at $5M is a very nice compromise if you ask me.

 

Both sides come out of this (assuming it becomes official) very well if you ask me.