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NBA SALARY CAP

NBA SALARY CAP. The limit to the total amount of money an NBA team is allowed to pay its players. NFL vs NBA cap. NBA salary is a “soft cap” due to its obscure rules and many loopholes that allow team to go over the cap. The NFL has a “hard cap” which limits the ways teams can go over.

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NBA SALARY CAP

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  1. NBA SALARY CAP

  2. The limit to the total amount of money an NBA team is allowed to pay its players

  3. NFL vs NBA cap • NBA salary is a “soft cap” due to its obscure rules and many loopholes that allow team to go over the cap. • The NFL has a “hard cap” which limits the ways teams can go over.

  4. History of the CAP • Had a cap in 1940 for one year then dropped the cap. • Played without a cap until 1984-85 season. Reinstated to “level the playing field” and create competitive balance in the league.

  5. What is a CBA? • Collective Bargaining Agreement • This is a contract between the NBA (commissioner and 30 team owners) and the NBA players association.

  6. What is the function of the CBA • It dictates the rules of player contracts, trades, revenue distribution, how the draft works, and players salary • The current CBA is due to expire after the 2011-12 season.

  7. Today we will talk about the SALARY part of the CBA • Maximum $- the maximum $ a player with 6 or fewer years experience is 9 million • 7-9 years is 11 million • 10+ years – 20.1 million

  8. Exceptions to the cap • Mid level exception • Bi annual exception • Rookie exception • Larry Bird exception • Early Bird exception • Non-Bird exception • Minimum Salary exception • Traded player exception • Disabled Player exception

  9. Mid level Exception • Team can sign one player to avg NBA salary if the team is over the cap

  10. Bi-annual exception • Or

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