The NBA and Players Union have reached an agreement in principle at the start of the 2020-21 season, as well as a revised collective bargaining agreement, both parties announced Monday night.
The deal gives the free agency two days after next week’s NBA draft, Friday, Nov. 20. It is scheduled to begin at 6 p.m., Friday.
As agreed last week, the regular season will begin on December 22, and the schedule will be 72 games.
Salary income is being set at $ 109.1 million, and the luxury tax will be 13 132.6 million – the same numbers that were in the 2019-20 season before the ongoing COVID – a major financial blow to the league – 19 epidemics. The teams have been expecting the numbers to remain the same for some time now, as uncontrolled declines in revenue have forced both teams and players to avoid a big drop in salary revenue for next season.
The remaining amount of the collective bargaining agreement will guarantee a minimum 3% and a maximum of 10% increase in the salary cap each year.
Both sides suffered losses over several seasons by compromising on the escrow system. A typical 10% escrow retention will remain in place. If a player’s salary needs to be reduced by more than 10%, the loss is spread throughout the season as well as the following two – and players can never withhold more than 20% of their salary. Season. The hope on both sides is that the league will be able to return to normal financial measures as the future asons reduce the Tuo epidemic.
The sources also said that the NBA will reduce the luxury tax bill for the teams at the end of the 2021 season in an effort to ease the tax burden on teams, which has been steadily increasing on the salary cap and luxury tax. Percentage amount or revenue related to the league’s basketball is lower than the initial estimates.
For example, if it drops from an estimated 8. 8.45 billion to 9 5.9 billion – a 30% reduction – the Golden State Warriors estimate the luxury tax bill will be reduced to 60 60 million. 42 million.
Another way Golden State could benefit from luxury tax relief is in terms of the potential use of the $ 17.2 million trade exception generated by trading Andre Igudala last summer. If a player gets that full amount in the Warriors trade, his tax bill will increase to 9 149 million. The decline in league-wide revenue, however, could be up to a million 45 million compared to the total number.
Right now, there are four teams – the Warriors, the Brooklyn Nets, the Boston Celtics and the Philadelphia 76ers – that are in luxury tax, although that number is likely to increase as caps and taxes will now remain flat.
Once the final deal is officially signed, teams are unlikely to receive formal official numbers from the league until the weekend. The current deadline for leg transactions is also expected to be lifted early next week – before the NBA draft is scheduled for November 18.
This huge and compact se fission will begin in less than two weeks from the start of the training camp on December 1 by Free and Agency with the expectation of free agency starting soon after the draft.
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