Ferretsquig
06-22-2011, 05:29 PM
The essence of the system described by Stern was an NHL-style cap system with a targeted salary of $62 million per team and a to-be-negotiated range from a minimum to an amount above $62 million that teams could spend up to through various exceptions currently in place – such as the Larry Bird exception and mid-level exception. An escrow-like system would be used to adjust for teams coming in below and above the $62 million target. Unlike the current escrow system, through which 8 percent of players’ salaries is withheld and paid back if negotiated salaries fall short of 57 percent of revenues, Stern said owners would keep the escrow under the new system – making this, in effect, an 8 percent pay cut for the players in Year One.
In terms of the owners’ initial proposal of a $45 million hard cap, the latest offer from the league amounts to a $650 million move from their initial position. The basic structure of a 50-50 split of revenues – based on a modified formula with about $900 million in expenses deducted before sharing with the players – remains intact. The luxury tax would be eliminated under the owners' proposal.
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That sounds more like what the final solution will be. ~60 mil flexible cap with a set basement and ceiling ~50-70 mil. It keeps teams like the Mavs and Lakers from their 90 mil payrolls and forces the cheapskate owners to spend enough to compete.
In terms of the owners’ initial proposal of a $45 million hard cap, the latest offer from the league amounts to a $650 million move from their initial position. The basic structure of a 50-50 split of revenues – based on a modified formula with about $900 million in expenses deducted before sharing with the players – remains intact. The luxury tax would be eliminated under the owners' proposal.
To view links or images in this forum your post count must be 10 or greater. You currently have 0 posts.
That sounds more like what the final solution will be. ~60 mil flexible cap with a set basement and ceiling ~50-70 mil. It keeps teams like the Mavs and Lakers from their 90 mil payrolls and forces the cheapskate owners to spend enough to compete.