BRI (Basketball Business Income): Without BRI, there would be no salary cap and luxury tax. The bookkeeper of the league will scientifically "guess" the total amount of dollars in the NBA next season at the beginning of July every year. This is called BRI. Miscellaneous items include regular season ticket revenue, broadcasting rights sales revenue and playoff ticket revenue. There are as many as 65,438+06 kinds of licensed goods sold in authorized stores within a 75-mile radius of the stadium. It exists in a fixed digital form every year. For example, the BRI in 2005-06 was about 65,438+30.7 million, and in 2004-05 it was about 900 10000.
Total salary of the team: This concept is the basis of all transaction terms, signing terms and special terms, salary cap, luxury tax and the first consideration of any transfer. The regular part includes the following seven items: (1) salaries of all active players and players on the injury list, as well as potential bonuses; (2) Wages paid or likely to be paid to abandoned players during the contract period; (3) Retirement payments for retired players; (4) Wages of restricted free agents; (5) The salary of the invited player in the contract; (6) Fixed salary after being selected as the first-round rookie; (7) When the total number of people is less than 1 1, the team will be punished for absence.
Salary cap: also known as salary cap. Only when the total salary is below a certain amount can the team be allowed to sign as a free agent. Note: the team salary is below the salary cap, and the special value of all transactions that the team has the right to use will be included in the team salary until the team salary reaches the salary cap. On the day before the opening of the free market every year, the League will announce the specific amount of salary cap for the new season, and the calculation formula is: expected BRI*48.04% for the new season. Divide the bonus by 30 (number of teams). This is not a wage capping system without room. Teams can introduce players above the salary cap through various special terms.
Luxury tax: it includes two aspects: when the total salary bonus of the league exceeds about 6 1. 1% of the BRI, the luxury tax will be triggered. The BRI of 6 1% is the trigger line of luxury goods tax. Teams that exceed the trigger line must pay the same amount of tax to the league, and even if they exceed one point, the tax will be distributed equally.
Cliff protection line: it is 65% of BRI, and its purpose is to distinguish "different crimes". The biggest punishment is that the team that exceeds the cliff protection line will not get any tax distribution, while the team whose total salary exceeds the trigger line and falls below the cliff line can still get a certain percentage of tax distribution.
Maximum salary: the maximum salary of a player will be calculated according to 48.04% of the BRI income of the team, that is, the maximum salary cap. According to the new labor agreement, the maximum salary of a player in 0 ~ 6 years is 25%, that of a player in 7 ~ 9 years is 30%, and that of a player in 10 years is 35%. This figure is the same as the player's previous contract.
Bird exception: A free agent of our team who has not been transferred to a free agent for three years will be qualified as Bird. Even if the player later transfers to another team, the qualification will still follow the player. This exception allows teams above the salary cap to re-sign with our qualified free agents, and the amount can reach the highest salary. The longest service period is 6 years, and the maximum increase is 10%/ year.
Special case of early bird: our team's free agent will be "early bird qualification" if he has not changed into a free agent for two years. With this clause, the team can renew the contract with our freelancers at most 175% of last season's salary or the average salary of players (whichever is greater). The longest term is 5 years, and the maximum increase is 65,438+00%/year.
Non-Bird Special Case: A team free agent who does not meet the Bird Special Case or the early Bird Special Case is defined as a "non-veteran free agent". Only when such players exceed the salary cap can they be allowed to sign contracts at 65,438+020% of the salary of the previous year or 65,438+020% of the basic salary (whichever is greater). The maximum service life is 5 years, and the maximum increase is 8%/ year.
Special case of middle class: even if the salary of the team exceeds the salary cap, the team has an unplanned fund every year, which is equivalent to the average salary of the league players. According to the new labor agreement, the special case is $5 million in the 2005-06 season, and after that, it will increase by 8% every season compared with last season, up to five years, and it can be used alone. Example: This summer, the Rockets took splitting the middle class as a special case and signed the bosses Frodo and Scola.
1 10,000 special case: also known as veteran special case. Veterans here refer to players who have served in the league for 10 years. From 1998 to 2005, it will increase from 1 ten thousand dollars every year. The new labor clause in 2005 stipulated that this clause was 65438 in the 2005-06 season.
Special case of rookie: when the salary cap is exceeded, players can still sign with the first round rookie according to the fixed salary of rookie. The maximum service life is 5 years, and the maximum increase is 8%/ year. This special case is to prevent teams whose total wages exceed the salary cap from signing rookies.
The initial first-round rookie annual salary is defined as the weighted average of the same rookie's annual salary in the first seven years, and then decreases according to the ranking. However, in the famous 1998 labor negotiation, the annual salary of the first-round rookie was revised to a fairer annual increase of 5%. For example, in 2002, the benchmark salary of the first year of the NBA top pick was $3,265,438+$5,000, while in 2003, the benchmark salary of the first year of the NBA top pick was $3.35 million. The difference between the two is the annual salary increase of the first round rookie. However, in practice, the team can offer the rookie a contract that fluctuates by 20% on the basis of the benchmark salary.
Another important regulation about the annual salary of the first-round rookie in the new CBA is that the first-round rookie must sign a 2+ 1+ 1 contract with the team, that is, the team can choose to implement the team option to perform the third-year contract after the first year of the rookie.
The salary increase of the first three years of the first round of rookie does not exceed 8%. If the team implements the fourth year option, the salary in the fourth year will be increased in proportion to the salary in the third year. For the top pick, this ratio is 26. 1%, while for the last rookie in the first round, this ratio is as high as 80.5%.
It is worth mentioning that after the first round of the rookie's four-year contract, the team can offer him a one-year limited contract, and the annual salary will increase by 30%-50% in the fourth year. After this contract, the first-round rookie can become a completely free agent.
Transaction exception (TE): This is a relatively complicated exception. In fact, every team in the league has a whole year to complete the transaction, so the team gives away the players in the transfer in exchange for a cost concept similar to "credit point", and then exchanges this so-called "credit point" for the equivalent players in this year. It should be noted that, first of all, the team can't take this special case and other special cases as a package, such as the middle class special case. Second, the team cannot use it.
Pardon exception: Also known as the Houston exception in Allen. The league stipulates that when the team cuts a guaranteed player, the salary in the contract will continue to be included in the team's total salary until the player's original contract expires. However, in this special situation, the players' contracts can be bought out directly, which is not included in the total salary of the team. The team only needs to pay the wages in the remaining contracts to the players. This special situation is limited to once a season.
Basic trading principle: the maximum value of the two teams' trading partners is 1.25%, and the annual salary is +65438+ million dollars.
Special case of veteran's basic salary: For veterans who have been in the NBA for more than seven years, the NBA stipulates that their basic salary is 1 10W, while the average player's basic salary is 40W.
10-day short-term contract: it means that the contract between the player and the team can only last 10 days (or three games, whichever is longer). In a single season, the team can sign two short-term contracts for a player 10 days continuously or intermittently. However, if you want to sign a third contract, you must leave the team until the end of the season, that is, you can only sign two short-term contracts for 10 days at most. Short-term contracts take effect after 1.5 every season.
Maximum salary limit: the NBA also has a limit on the fixed salary of players, and the maximum salary contract also grows according to the growth of the ball age. We often see that the contracts of some veterans who have been on the bench for 10,000 years due to physical decline in the NBA are staggering, close to the level of 20 million, which is the reason. The general maximum salary is set as follows: the maximum salary for players aged 0-6 is 9 million, and 25% of the "salary cap" (this "salary cap" is slightly smaller than the team's salary cap) is larger; The maximum salary contract for 7-9-year-old players is 1 1 10,000 and 30% salary cap, and for 10-year-old players it is140,000 and 35% salary cap. In the 2008-09 season, the highest salary contracts for NBA players of these three age groups were 13758, 16509 and 1926 1 10,000 USD respectively.
The salary of the maximum salary contract is limited only in the first quarter. For example, in the summer of 2007, the Magic renewed Howard with a maximum salary. This contract came into effect in the 2008-09 season, with an annual salary of $654.38+03.758 million (played for four years). The salary in the second season will not be limited by the highest salary in the 2009- 10 season, but will be raised according to the maximum salary increase regulations. The maximum annual salary increase in the contract is 8% (8% in the first year of the new contract and the same amount every year thereafter), and the annual salary increase in the Byrd clause contract is 10.5%.
The labor terms also stipulate that if a player is already at the top salary, his annual salary in the first year of the new top salary contract can be 105% of the annual salary in the last year of the previous top salary contract. For example, Garnett's annual salary in the 2008-09 season is $24.75 million, which has exceeded the stipulated maximum salary. Assuming that this is the last year of his contract, Garnett's maximum annual salary in the 2009- 10 season will reach 2475x105% = 25.99 million, so he will no longer use the maximum salary. Therefore, we often see that the annual salary of many players exceeds the maximum salary stipulated in the salary cap.
It is not strict to divide the contracts into these three types, except rookie contracts, which will be explained separately due to space limitations. The above is just a macro comment on the three contracts. Some well-known contracts, such as Byrd clause, early Byrd clause, middle-class contract, and contract details such as player option and team option, will be explained later.
Biennial special case: Biennial special case is also called "million clause" because the starting salary of this special case is just $ 1998-99. The biennial exception is named "biennial exception" because it is used every two years. Like the middle-class special case, its starting salary is fixed and it can sign multiple players.
Special case of basic salary: teams with salaries above the salary cap are allowed to sign basic salary contracts, and the longest contract is a special case of two-year disability:
Disability exception means that when a team player is absent from all games due to injury (or death), the team can apply to the league for disability exception, so that the team can sign a substitute player when the salary exceeds the salary cap. The annual salary of newly signed players is at most half of the annual salary of injured players or the annual salary of middle-class players (whichever is smaller).
Recovery exception: refers to the player who is banned by the league. After the lifting of the ban, the original owner can continue to sign the previous contract with him.
It should be noted that the salary burden brought by any special case will be included in the salary cap, and the contract signed in the middle of the season will be calculated in different ways. For contracts signed after 65438+ 10 every season, the contract amount will be reduced by1180 for each day less. Special circumstances cannot be mixed. For example, Team A has a middle-class contract of 5 million and a two-year special case of 2 million, and he is not allowed to use these two special cases to sign player B with an annual salary of 7 million.
Completely free players can easily explain that the contract is over and players can sign with any team.
Corresponding to a completely free player is a restricted free player. When a player becomes a restricted free agent after the contract ends, other teams can offer the player a quotation contract, and the player can sign a contract, but the parent team has the priority to match, that is, if the parent team follows up (offers the same contract) within 7 days, then the player must stay in the parent team. Of course, if the home team does not follow up within 7 days, it will be regarded as giving up. According to NBA regulations, only players who have played in the league for three years or less, as well as first-round rookies, can have restricted free agent agreements in their contracts. In other words, except for these recruits, everyone else is completely free after the contract expires.
If the team wants to make its own free agent a restricted free agent, it needs to submit a quotation contract. The first-round rookie signed a 2+ 1+ 1 contract under the new labor terms. After the end of the rookie contract in the fourth year, the team must submit the quotation contract of 1 year before July, so that the first-round rookie will automatically become a restricted player. If the team is in July 65438, the one-year quotation contract is stipulated in the order of players' draft. For recruits who are not first-round rookies, such players include second-round rookies and some free agents who have just joined the league. The procedure is basically the same as the first round rookie. The quotation contract can be 1.25% of the original contract or the player's basic salary plus 1.75 million USD.
Speaking of restricted free agents, it is said that other teams can make an offer contract for restricted players of a certain team, and this offer contract can reach a maximum salary of five years. However, the NBA prefers its free agents to stay and attract local fans. Therefore, for those teams that have restricted free agents who have only been in the league 1 2 years and have exceeded the salary cap, when other teams offer the highest bid contract, the parent team can only offer the early bird clause (not higher than the middle class) or the middle class contract at most. In other words, the mother team can't match at all and can only watch their players leave. The current labor and capital provisions have been revised to solve this phenomenon. It stipulates that when a player who has been in the League 1 2 years becomes a restricted player, the first-year annual salary of the quotation contract offered by other teams shall not be higher than that of the middle-class contract, so that the home team can match the early Bird clause or the middle-class contract. Because Arenas' defection to the Wizards triggered the release of this regulation, it is also called the "Arenas Rule". Because most of the first-round rookies have four-year contracts, there is basically no "Arenas phenomenon" (the first-round rookies' parent team can match the Byrd clause, and the starting salary can reach the top salary). It can be said that the application scope of this rule is locked in the second round of rookie and non-draft players, and their contracts are often 1-2 years.
The NBA stipulates that the starting salary of quotation contract can not be higher than that of middle-class contract, and it also plays a "tricky" role. According to the Arenas rule, the annual salary in the second year of the contract can be increased by 8%, while the annual salary in the third season can break out or even reach the top salary, and the annual salary increase after that shall not exceed 6.9% of the annual salary in the third year. However, the total salary of this quotation contract is also limited by the salary space of the team, that is, the contract year multiplied by the remaining salary space of the team.
Examples can be given here. For example, Team A has a salary space of $65,438 +0 1 10,000, and has offered an offer contract to the restricted player C of Team B, if the middle class earns $5 million a year. This quotation contract can last up to 5 years x1100 = USD 55 million, and the specific distribution is as follows. The annual salary in the first year is limited by the Arenas rule, and it is 5.4 million dollars in the second year (an increase of 8%). The remaining three-year contract will be divided into 44.6 million yuan (5500-500-540=4460), namely 1390,1487,65487.
Why can't Team A give a contract of more than five years and 55 million dollars? This is because if Team A signs other freelancers with a salary space of $65,438+065,438+00,000, the maximum contract is only $63.8 million for five years (the annual salary of the first year is $65,438+00,438+00,000, an increase of 8%), and the Arenas rule prevents the team from giving excessive total salary when the salary space is insufficient. Of course, Team A has enough salary space, so the remaining three-year quotation contract can naturally get the top salary.
In fact, it is reasonable for the Arenas rule to pay for two consecutive years. Because most of the second-round rookies who apply this rule shine brilliantly, but because the first-round rookies want to get the top salary contract, they have to wait until the end of the four-year rookie contract, so they have to wait until four years after entering the league.
Retired player: If a player chooses to retire before the end of his contract, will his contract be terminated early? Of course not, otherwise which player would be stupid enough to give up millions or even tens of millions of dollars on his own initiative? In fact, how much money a player can get after retiring depends on the negotiation result between the team and the player.
When calculating the team's salary cap, the salary paid by the team to the retired players is included in the team's salary, so as to avoid the team persuading the old players to retire early in order to reduce the burden of the salary cap.
There are also special circumstances that allow players to continue to get their wages, but the wages paid do not need to be included in the team's salary cap: the team needs to apply to the league for special circumstances of skill loss, and the doctors appointed by the league will check whether the players are capable of continuing the game. If the doctor decides that the player has lost his playing skills, the salary paid by the team will not be included in the salary cap of the team (otherwise it will be calculated correctly if he retires). In addition, this special case can also be used in the case of accidental death of a player in a contract, so that this part of the salary can be deducted when calculating the salary cap.
Layoffs and buyouts: In the NBA, we often see layoffs. When many media reports, there are often layoffs or buyouts. This issue will focus on release and acquisition.
Let's talk about the difference between the two. We often see in media reports that some marginal figures are often said to be laid off after being removed from the list, while some veteran with a little seniority are bought out. In fact, buyout and layoffs are the same thing. Just because in American media reports, there is usually a contract after the buyout, such as a buyout contract, and after the release, it is the recipient. Because most marginal players are basic salary contracts, when reporting, they directly say that layoffs, veterans with slightly deeper qualifications, have big contracts. At this time, the focus of media attention is on the contract, and the word "buyout" will be used.
Players will be in a state of "abstention" after being laid off. The so-called waiver means that when a player is laid off, other players can accept his contract within the specified time. If a player is laid off before the end of the regular season in August 15, he will abstain for 48 hours and stay for 7 days at other times. Other teams can pay $65,438+0,000 to the league to apply for accepting the remaining contracts of players. If no team takes over during the waiver period, then the player becomes a completely abandoned player and he can sign with any team. Generally speaking, for those laid-off players whose contracts are expensive, other teams will wait until he becomes a completely abandoned player before re-signing him. This is because their original contract was very large. If a player is laid off after March 1, he will be disqualified from representing any team in the playoffs. After the player is laid off, he must sign a contract with his old club 30 days later (20 days off).
The contract of the laid-off player is still paid by the old club (the amount is determined by both parties through consultation, but the summer league contract is not needed), but if the player signs a contract with another team (not even an NBA team), the old club can reduce part of his salary (the amount is the salary of the new club minus the basic salary of the player in the current season 1, and then divide by two). For example, if a player was laid off in the 2005-06 season and signed a contract with a new team with an annual salary of 6,543.8+0,000, then the original owner can pay the player less $6,543.8+0,790 (6,543.8+0,000 minus the basic salary of 642,000 players in the 2005-06 season and then divide by two). If the player has $5 million left in the contract with his former employer, then the player can get $500+100-17.9 = 582.100000, which is more than what he would get without being laid off.
Early contract renewal: early contract renewal means that the player signs a new contract with the new owner before the end of the existing contract, and the new contract will take effect after the end of the existing contract. Players under the old seven-year contract can renew their contracts in advance after four years, four-,five-and six-year multi-year contracts can be renewed after three years, and contracts under four years cannot be renewed.
The annual salary of the first year of the new contract renewed in advance cannot exceed 1 10.5% of the annual salary of the last year of the existing contract, and cannot exceed the annual salary of the current year (105% of the annual salary of the last year of the existing contract or the highest salary stipulated in that year, whichever is greater). For example, in 2000, O 'Neill renewed his contract with the Lakers in advance. O 'Neill's contract didn't end until the summer of 2003. According to the provisions of the old labor terms, the annual salary of the first year (2003-04 season) of the new contract can reach 1 12.5% of that of the 2002-03 season, that is, 265 18000 USD. O 'Neill's maximum annual salary for the 2003-04 season should be 105% of the last year of the original contract and the specified maximum salary, namely $24.75 million. Finally, O 'Neill's contract was reduced to $24.75 million. It can be said that for those superstars who have already paid the top salary, there is no difference between renewing their contracts in advance and talking about money after the contract expires, while those players who have no top salary will not get the top salary contract if they renew their contracts in advance. However, renewing the contract in advance can often make players feel safe and more valued by the team.
It is the first-round rookie who renews his contract in advance, especially the top first-round rookie who renews his contract in advance. The renewal of the first-round rookie contract is generally completed from July 1 to June 10 and 3 1 after the third season of the rookie contract. Its renewal procedure is basically the same as other renewal procedures, and the rookie can get the top salary directly after ending the four-year rookie contract.
Re-negotiation: Re-negotiation means that players who have been under contract for many years are not satisfied with the existing contract, so as to renegotiate with the team and reach a new contract. Generally, the current contract can't be renegotiated until the third year, and the NBA is not allowed to renegotiate between March 2 and July 1. In addition, teams with a total salary above the salary cap have no right to renegotiate. I. Contract options:
The contract option is a unilateral option that is added with the consent of both the team and the players. It allows teams or players to choose whether to implement the contract in the last year. The contract is divided into team option, player option and early termination option, which must be executed before July 1 The following will introduce these three options respectively:
Team option: As the name implies, the team option means that the team has the right to execute the contract in the last year. There is only one option in the multi-year contract, and the annual salary of the option shall not be lower than the salary of the previous year.
Player's option: refers to the player's right to execute the last year's contract and choose to stay in the team or become a free agent.
Early termination option: the early termination option belongs to the player only, which is slightly different from the player option. The option of early termination can only appear in a contract of 5 or even 6 years, while the option of player can appear in any contract of 2 years or more. Moreover, the early termination option can be used after the end of the fourth season (for example, for a 6-year contract, the early termination option can be advanced by 2 years, while the player option is only advanced by 1 year). In another multi-year contract, neither the team option nor the player option is allowed.
One exception to the team option is the first round rookie contract. The first round of rookie contract, the third and fourth seasons are all optional years for the team. The deadline of the team's option execution can be postponed to10,31.
If a player signed a multi-year contract with the team, but the team bought it out before the player exercised the player's option, how to calculate the annual salary for the last option year? Generally speaking, when signing this contract, the player will indicate how much protection the player will get in this case.
Whether a player executes the player option and jumps out of the contract to join the free market depends on the player's status, age and other factors. There is a big difference between entering the free market at the age of 29 and 30.
Edit the special circumstances of the input transaction.
The transfer is usually completed at the same time, which is called "instantaneous" transfer. However, the team actually has a whole year to complete the transaction, which is called "non-instantaneous" transfer. For one of the transfer parties, if more than one player is sent, the transaction must be an instant transfer, and only one player can be sent for non-instant transfer. For example, a team exchanges a player with an annual salary of 2 million for a player with an annual salary of 1 10,000, and then within one year, it exchanges a draft (the calculated transfer value is zero) for a player with an annual salary of 1 1 10,000, thus completing the whole transfer. Generally speaking, they transferred their annual salary to 265,438+million, and transferred out 2 million yuan, which fully met the requirements of the league, but they did not complete the transaction at once, and even traded to two different teams. In this example, when the team exchanged a player with an annual salary of 2 million for a player with an annual salary of 6.5438+0 million, they got a "credit point" worth 6.5438+0 million, and then they exchanged this "credit point" for a player with an annual salary of 6.5438+0.65438+0 million, without sending out other players. What are the restrictions on trading exceptions? First of all, the team can't sign a free agent with this special case, but can only exchange the existing contracts in the hands of other teams; Second, the special case of trading players cannot be confused with the special case of ordinary players "1 15% plus 65438+ million dollars". For example, a player with an annual salary of 2 million can directly exchange a player with an annual salary of 2.4 million through the exception of ordinary players, but the team cannot exchange a player with an annual salary of 3.4 million and a player with an annual salary of 2 million with the exception of 1 10,000. How to calculate and use transaction exceptions? Teams can use some transaction exceptions first, and then use the rest. For example, when a team trades a player with an annual salary of 4 million for a player with an annual salary of 2 million, they get a special case of trading players of 4 million-2 million = 2 million. (Plus the extra 65438+ million of ordinary players under special circumstances, totaling 265438+ million). If they exchange100000 for another draft pick of a player, there will be a trading exception of11000000, which will be valid for one year after the original transfer. How to "steal" a transaction exception? Because the transaction exception will not be included in the team's total salary, it is a "weapon" to balance the salary space, and everyone hopes to get it. Sometimes, teams can divide multi-person transfers into multiple single-person transfers to get the exception of trading players. The transfer between Houston and Orlando in the summer of 2004 is a good example. Houston traded Francis, Mobry and Cato for McGrady, Howard, Lou and Gaines. If this is a separate transfer, no one can get the exception of trading players because both teams have sent more than one player. But Houston did this: Cato and Mobry were traded for McGrady and Gaines in the first transfer, Howard and Lu were traded for another exception except last year in the second transfer, and Francis was traded for another exception in the last transfer, while Orlando didn't get the exception of trading players.