The NBA and the Players Union are currently negotiating a new collective bargaining agreement. I’d like some input.
In the current CBA, there is a salary cap. This cap is set every year based on the revenue generated the year before. Players contracts are limited to a set percentage of this salary cap. However, players still sign contracts with dollar amounts.
This worked out fine until recently. Like home values, the salary cap had never gone down until two years ago. When it did, those set dollar figures made building a team near impossible. These massive contracts were taking up a far larger percentage of the salary cap than anyone intended.
For the next CBA, I recommend that all contracts be set as a percentage the salary cap, not a dollar amount based on the cap of the season in which the contract was signed. Call them Salary Cap Points.
Instead of getting 8% or 10.5% raises on their previous year’s salary, players can receive more Salary Cap Points. After all, when revenue shrinks for the league, shouldn’t its players share the burden?
Until next week,
--
Jonathan Rozen
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment