Stern changes lockout rules

By Mike Kahn
CBS SportsLine Executive Editor
Dec. 17, 1998

  • Read Stern's letter

    After years of accusations, fines and downright undermining player movement all in the name of circumventing NBA rules, commissioner David Stern circumvented the collective bargaining process Thursday when he bypassed the players union and sent a nine-page memo to every NBA player outlining the league's proposal.

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  • well into the sixth month of a league-imposed lockout after opting out of an agreement signed in 1995, Stern outlined the entire proposal, with the undertone being most of the 400-plus union members weren't getting the whole story.

    "I recognize and respect your right to reject these proposals," Stern wrote. "However, it is important that there be no doubt about the precise terms you consider to be such a 'bad deal' that you would prefer to lose the entire season."

    THE SARCASM WAS unmistakable. There is no preference from the players to prematurely end the season -- only threats of a perceived drop-dead date from Stern. He has made the transition from moving the ball around the plate like Greg Maddux to unleashing 100-mph fastballs like Goose Gossage at his best.

    Stern is going right at the middle of the plate and daring the players to take their best shot.

    Despite contentions on Wednesday by union director Billy Hunter that "things can't be too critical or extreme (from their vantage point) in view of the fact that commissioner Stern is planning a vacation in Aspen," Stern instead was completing this nine-page memo to the players.

    He broke down the proposal into four basic parts:

    • No "hard salary cap."
    • Retaining a form of the Larry Bird exception.
    • Allowing timing rules for free-agent signings to remain.
    • Limiting the escrow and tax payments.
    STERN
    David Stern
    David Stern goes straight to the players Thursday. (Allsport)
    INSISTS THERE WILL NOT BE
    a "hard salary cap" because of a varying degree of exceptions based on the year's salary caps (for example: $2 million is projected in the third year, plus $100,000 more per year in a multi-year deal based on a 5 percent raise) for teams over the cap. That provides for the middle class.

    Also, for the upper class, there remains a strong variation of the Larry Bird exception, which previously allowed unlimited salaries for a team's free agents. There will be a ceiling, but a very tall one at that.

    For this coming season, the average Bird-exception salary for players with zero to six years of experience will be more than $10.6 million; for players in years 7-9, $12.8 million; and for players with 10 or more years experience, $16.5 million (which is still higher than the $15 million average salary Kevin Brown will earn as the highest-paid player in baseball).

    The minimum salary exception for years players with zero to two years of experience will be $250,000, increasing $5,000 in each of the six years the NBA wants the agreement to last (with an option for the league in the seventh season). For years 3-5, it will start at $350,000 and increase $35,000 in each year of the agreement. In years 6-9, an additional $50,000 will be added for each year of service. Any 10-year veteran will be eligible for the $1 million exception.

    "I believe that the proposals now on the table reflect a good faith effort by the owners to reach an agreement that is fair to all players, extremely beneficial to the vast majority, and assures that the growth we have achieved together will continue," Stern wrote.

    THE GROWTH WILL BE THERE, ALL RIGHT; the owners are backing off an unlimited escrow payback and luxury tax from the players. As for first-round draft choices, there will still be three-year guaranteed contracts. The fourth year will be the team's option if it wants to invoke a right of first refusal on a free-agent contract.

    Granted, all this money will continue to build more rapidly in the owners' pockets, and the players will get their share, although not at the same rate as now. They earned 57 percent of the basketball-related income this past season.

    The owners are willing to pay that again this season and 57.1 percent next season, then it will slip downward to 53 percent by the sixth year of the contract in 2003-2004. Hunter's concern is how much more revenue there will be as international competition becomes a bigger factor.

    But before players lose any sleep, they should consider the average salary will have shot up to $4.569 million from the projected $3 million this season.

    NOT BAD, HUH? JUST TO KEEP it in perspective, the average NBA salary last season was $2.63 million, compared to $1.38 million for baseball, $1.1 million for the NHL and $910,000 for the NFL.

    As for Hunter and the union's response to all this ... well, we're still waiting. With the same number of players to contact as Stern, Hunter has his work cut out for him. This doesn't end the lockout by any stretch of the imagination.

    It just changes the rules. So duck.

    Mike Kahn is CBS SportsLine's executive editor.


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