Master Outline

  1. In General:  Players, Teams, & Administration

    1. Players:
      1. Designated Player: The DESIGNATED PLAYER is the name given to the player who becomes the DESIGNATED PLAYER ROOKIE.
        • Timing: A player becomes a DESIGNATED PLAYER when the player enters into the DESIGNATED PLAYER ROOKIE SCALE EXTENSION CONTRACT.
        • Relative CBA provisions: Article II § 7(b) and (d)
      2. Replacement Player:   A REPLACEMENT PLAYER is a player acquired pursuant to two exceptions:  either the (a) Traded Player Exception or (b) Disabled Player Exception.
      3. Rookie:  A ROOKIE has never signed a PLAYER CONTRACT in the NBA.
        1. Types Of Rookies:
          • DRAFT ROOKIES: A DRAFT ROOKIE is a ROOKIE who is selected in the NBA DRAFT
          • NON-DRAFT ROOKIES:  A NON-DRAFT ROOKIE is a ROOKIE who is not selected in the NBA DRAFT for which he is first eligible.
      4. First Round Pick:
      5. Second-Round Pick:  A SECOND ROUND PICK is a player selected by a team in the second round of the NBA DRAFT.
      6. Traded Player:  Player K is assigned by 1 team to another team not by way of waiver procedure  (as set forth in VII §12 j).
      7. Veteran:  A veteran is a player who has signed at least one PLAYER CONTRACT with an NBA TEAM.
      8. Years of Service:  YEARS OF SERVICE (hereinafter, YOS) means the number of years calculated to a player for his service.
        1. 1 Year of Service:  Every year that he is on an NBA Active List OR Inactive List for (1) or more days during the Regular Season.
          1. When Credited:  Creditedon June 30 following the Season with respect to whit it is being credited
          2. Limits:
            1. Not One Year:  The Following situations will not credit a player with one year of service.
              • Witholds playing services called for by a Player Contract or this Agreement for more than 30 days after the season begins
              • is Restricted Free Agent who has been tendered a Qualifying Offer by his Prior Team and the Prior Team has extended the date by which the player must accept the Qualifying Offer unitl March 1 in accordance with the Article XI, § 4, subsection c(i), and has not signed a Player Contract with any Team by March 1.
              • is on an NBA Active List or Inactive List as a result of signing a Player Contract that is disapproved by the Commissioner.
              • NOTE:  In no event can a player be credited with more than one (1) year of Service with Respect to any one NBA Season.
            2. Pension Plan Use:  N/A to the definition of Years of Service herein be used for purposes of determing a player’s years of credited service under the NBA Players’ Pension Plan.
            3. Previous Years of Service before the current CBA:  Years of Service credit for Seasons prior to the 2005 NBA/NBPA Collective Bargaining Agreement shall be determined in accordance with the provisions of the 1999 NBA/NBPA Collective Bargaining Agreement.
    2. Teams & Ownership:
      1. Member:  A MEMBER is any team that is a member of NBA.
        • AKA:  Team.
      2. Team:  Any team that is a member of the NBA.
      3. Expansion Team:  An EXPANSION TEAM (1) is formed after the Current CBA and (2) the TEAM begins play during the current CBA.
        • Example:
      4. Prior Team:  A PRIOR TEAM is the TEAM for which a player was last under CONTRACT prior to becoming an QVFA, EQVFA, or a NQVFA.
        • Note:  Prior team is only relevant when determining the foregoing free-agent statuses.
      5. Team Affiliate:  A TEAM AFFILIATE (1) is either (a) an individual or (b) an entity (2) that directly or indirectly either (a) holds an ownership interest in a Team (other than ownership of publicly-traded securities constituting less than five percent of the ownership interests in a a Team) (an Owner); (b)  is controlled by or is under common control with, or who or which is an entity with or an individual related to, a team; OR (c ) is controlled by or is under common control with, or who or which is an entity affiliated with or an individual related to, an individual or entity described in section 1 (mmm)(i) or (ii) above; OR (ii) any entity as to which (x) an Owner, or (y) an individual or entity that holds (directly or indirectly) an ownership interest in an entity described in Section 1 (mmm) (ii) above, either (a) holds (directly or indirectly) more than five percent (5%) of its ownership interests or (b0 participates in or influences its management operations.
    3. League Officials:
      • Commissioner:
    4. NBA Draft:
      1. Draft:
        1. AKA:  NBA Draft.
  2. FREE AGENCY
    1. Free Agents: Free Agents are either Veterans or Rookies.
      1. A VETERAN FREE AGENT:  A VFA is created after a veteran’s contract naturally ends or Terminates via a waiver procedure.
        1. A Veteran whose CONTRACT has ended.
          1. Example:  LeBron James became a FREE AGENT when he opted out of his contract with Miami because  . . .
      2. A Veteran whose CONTRACT has been terminated via an NBA waiver procedure.
        1. Example:  If the Bucks were not to have picked up Kendall Marshall after the Lakers had waived him, Kendall Marshall would have been a FREE AGENT.
      3. A ROOKIE FREE AGENT:  FIRST ROUND PICKS, SECOND ROUND PICKS, and Non-Drafted Rookies.
        • FIRST ROUND PICKS:  May become a RFAs when the TEAM that drafts him does not sign him or gives up his rights.
          • Example:
        • SECOND ROUND PICKS:  May become a RFAs when the TEAM that drafts him does not sign him or gives up his rights.
          • Example:
        • Non-Drafted Rookie:  A non-drafted rookie is someone who was not drafted; however, he was eligible to be drafted.
          • Example:  Kent Bazemore was not drafted in 2012 even though he was eligible.  The Golden State Warriors signed him after the draft.
      4. Completing a 10-Day Contract:  A player whose last player contract was a 10 day contract.
        • Limits:  Must play out the contract by rendering services or be released early from the contract.
          • Example:  Hilton Armstrong.
    2. Veteran Free Agent:  A VETERAN FREE AGENT (hereinafter VFA) means a VETERAN who completed his PLAYER CONTRACT by rendering the playing services called for thereunder.
      1. Qualifying Veteran Free Agent: A (1) Veteran Free Agent (2) played under one or more PLAYER CONTRACTS, and (3) the CONTRACT(S) covered some or all of the previous three preceding SEASONS. (1) Must have had a contract for three years
        1. Playing exclusively for 1 Team:  If the player played all three seasons exclusively for one team then he will qualify as a QVFA.
        2. Playing for multiple teams over the three years:  If the PLAYER played for multiple TEAMS over the preceding three seasons, the he may be a QVFA if he did so through any or combination of any of the following:
          • Trade:  By playing for a team by means of a trade;
          • Amnesty:  By playing for a team by means of amnesty / waiver procedures
            • Example:
            • Amnesty procedure:  The procedures are set for int Article VII § 12, subsection j.
          • Signing with PRIOR TEAM:  By playing for a team by means of signing with his prior team during the first of three seasons.
            • Example:
      2. Early Qualifying Veteran Free Agent:  To become a EQVFA, the player must have had a contract or contracts covering some or all of the preceding two seasons.
        1. Formula to determine an EQVFA:
          1. Time frame:  The two preceding seasons.
          2. Contracts covered:
          3. Number of teams played for:
            1. If he played with one one team =
              1. Example:  Gilbert Arenas played his first two season with the Golden State Warriors.
            2. If he played with more than one team, then the player may be considered an EQFVA if he did any of the following:
              1. Changed teams via a trade:
                1. Example:  If Gilbert was traded from the Warriors to the Wizards during Gilbert’s rookie year, and he played out the remaining term of his contract with the Wizards, he would be considered an EQFVA.
              2. Changed teams via any waiver procedure:
                1. Example:  If Gilbert was waived or amnestied (pursuant to VII § 12(j) ) by the Warriors during or after Gilbert’s rookie season, and the Wizards picked him up through such a procedure, then he could still be considered an EQFVA.
              3. Changed teams via his signing with his PRIOR TEAM:
                1. Example: If Gilbert were waived by the Warriors, and if he were to sign with the Warriors if he were to be unclaimed by any team through the waiver procedure, then he would retain his EQFVA status.
      3. Non-Qualifying Veteran Free Agent:
        1. Limits:  Includes niether:
          1. Qualifying Veteran Free Agents; nor
          2. Early-Qualifying Veteran Free agents.
      4. LIMITS:  A VFA does not include those players who have merely completed a 10 day contract as the first contract they have ever had in the NBA.
    3. Unrestricted Free Agent:  An UNRESTRICTED FREE AGENT refers to a FREE AGENT who is not subject to a TEAM’S right of first refusal.
    4. Restricted Free Agent:
    5. Rookie Free Agent:
      1. Types:  There are two two types of ROOKIE FREE AGENTS:
        1. Draft Rookie:  If a ROOKIE FREE AGENT is a DRAFT ROOKIE, then the he is no longer subject to the exclusive NEGOTIATING rights of any TEAM and may be signed by any team.
          1. Pursuant to Article VIII § 3 or Article X.
        2. Non-Draft Rookie:  (same as draft rookie).
  3. PLAYER SALARIES & COMPENSATION
    1. Player Salaries
      1. Salary:  Salary can have different meanings.
        1. Four different meanings of SALARY.
          1. The first meaning of SALARY can be in respect to “A” particular SALARY CAP YEAR.
            • Example
          2. The second meaning of SALARY can be in respect to a player’s COMPENSATION for the SEASON covered by such a SALARY CAP YEAR.
            • Example
          3. The third meaning can be in respect to any other amount that is deemed to constitute SALARY in accordance with the terms of this agreement.
            • example:
          4. The Fourth meaning includes any consideration received by a retired player that is deemed to constitute SALARY in accordiance witht the terms of this agreement in Article XIII.
        2. Scope:    
          1. Included:  Anything deemed a signing bonus in Article VII.
          2. Not Included in the scope of SALARY are the following:
            1. UNLIKELY BONUSES.
            2. BENEFITS the player receied in according with the terms of this agreement.
              1. BENEFITS:  The BENEFITS referred to are those provided for in Article IV.
                1. Examples:  Per diem, moving expenses.
            3. SALARY does not include any portion of the player’s COMPENSATION that is attributable to another SALARY CAP YEAR in accordance with the CBA agreement.
        3. Formula:  Players Salary – (less) any component thereof that is both (a) a signing bonus and (b) any INCENTIVE COMPENSATION.
          1. Signing Bonus:  Anything in Article VII.
      2. Regular Salary:
      3. Average Player Salary:
        1. Formula: (TOTAL SALARIES + Amounts Paid by NBA) / (# of Teams x 13.2)
          1. Total Salaries:  Requires a particular year–e.g., 2013-14.
          2. Amounts Paid By NBA:  The amounts paid for by the NBA for a particular SALARY CAP YEAR pursuant to Article VII § 2(b).
          3. 13.2:
            • Example:
          4. Related CBA provisions: VII §1(a) and (b)
      4. Estimated Average Player Salary: bbb
        1. Formula for Current Average Player Salary:  1.045 x Preceding Year’s SALARY CAP YEAR’s AVERAGE PLAYER’S SALARY.
          • Example:  1.045 x (2013-14’s Average Player Salary).
      5. Benefits:  
        • Also Known As:  Total Benefits
        • Related CBA provisions: IV
      6. Maximum Annual Salary:  Is a number that represents the Maximum Salary in the first year of a contract or extension.
        1. Formula to Calculate MAS:  (1) Maximum amount of Salaries eligible for (+) (2) Maximum amount of unlikely bonuses eligible for.
        2. How to Evaluate:  Evaluate the MAXIMUM ANNUAL SALARY in the first SALARY CAP YEAR covered by either a Contract or Extension as calculated pursuant to Article II § 7.
        3. Calculated:  Pursuant to Article II § 7.
      7. Minimum Annual Salary:  The MINIMAL ANNUAL SALARY is the amount of money that MUST be included in a player CONTRACT that covers the entire REGULAR SEASON.
        1. Relevant CBA provisions:  Article II § 6, subsection a.
      8. Minimum Annual Salary Scale:  The actual scale is located is located in the CBA as exhibit C.
      9. Minimum Player Salary:
        1. Applicability to the following contracts:  Entire Season, Rest of Season, and 10 day contracts.
        2. Relevant CBA provisions:  Article II § 6, subsection a.
        3. Formulas to Calculate Contracts:
          1. Calculating the Entire Regular Season Contract:
            1. Example:
          2. Calculating the Rest of Season Contract:  (Number of Days Remaining in the NBA Regular Season as of date such Rest-of-Season-Contract is entered into ) / (Total Number of Days of that NBA regular season).
            1. Example:
            2. Minimum salary provided in Article II § 6, subsection a.
          3. Calculating the rest of a 10-Day Contract:  Minimum SALARY x (# of days covered by the contract / total number of days of that season).
            1. Minimum Salary:  Pursuant to Article II § 6, subsection a.
      10. Rookie Salary Scales:  Refers to the tables annexed in the CBA as to Exhibit B.
      11. Rookie Scale Amounts:  Relative CBA Provisions:  Article VII § 3(d).
    2. Player Compensation:
      1. Compensation: Compensation has two meanings. The first meaning of compensation is money that either is (a) earned or (b) could be earned. The second meaning of compensation is in reference to the compensation that (a) is paid or could be paid to an NBA player (b) in accordance with the player CONTRACT.
        • Example: X earned _____; X could earn y. Bonuses? b. To whom receives the payment: The money is paid directly to either (a) the player or (b) a person or entity designated by a player. c. NBA player: Any NBA player includes a player whose contract has been terminated. For example, . . . .
      2. Base Compensation:
      3. Current Compensation:
      4. Current Base Compensation:
      5. Deferred Compensation:
      6. Deferred Base Compensation:
        1. Relative CBA provisions: Must be in accordance with Article VII.
      7. Incentive Compensation:   INCENTIVE COMPENSATION is a component of COMPENSATION derived from BONUSES.
        1. Relative CBA provisions:  Article II, § 3, subsections b ii and iii and c.
      8. Likely Bonus:  A LIKELY BONUS is INCENTIVE COMPENSATION that is included in a player’s SALARY.
        1. Relative CBA Provisions:  Article VII § 3, subsection d.
      9. Unlikely Bonuses:  It is INCENTIVE COMPENSATION excluded from a player’s SALARY.
        1. Pursuant CBA Provision:  Article VII § 3, subsection d.
      10. Performance Bonus:  A PERFORMANCE BONUS refers to any INCENTIVE COMPENSATION.
        1. Scope of applicable Incentive Compensation:  Anything considered INCENTIVE COMPENSATION in Article II § 3, subsection b(ii).
  4. IV.  TEAM SALARY & SALARY CAP
    1. Team Salary
      1. Team Salary:
        1. Formula for Team Salary: [ (1) Sum of all Salaries attributable to a TEAM’s active active and former players + (2) All other amounts as computed in accordance with Article VII ] set off by applicable credit amounts as computed in accordance with Article VII.
          1. Formula for Computing Team Salary:  ((1) Sum of all SALARIES attributable to a TEAM’S active and former players) + (2) All other amounts as computed in accordance with Article VII.) set-off by applicable credit amounts as computed in accordance with Article VII.
      2. Minimum Team Salary:  The MINIMUM TEAM SALARY is the minimum amount of SALARY that a TEAM must have for a particular salary cap year.
        • Examples:
          • 2014-15:
          • 2013-14:
          • 2012-13:
        • Relevant CBA provision:  Pursuant to Article VII § 2, subsection b.
    2. The Salary Cap
      1. Salary Cap:  The SALARY CAP refers to the maximum allowable TEAM SALARY for each TEAM for a given SALARY CAP YEAR.
        • Limits:  Rules and EXCEPTIONS set forth in the CBA may, under certain circumstances allow a TEAM to exceed the SALARY CAP.
      2. Salary Cap Year:  The SALARY CAP YEAR goes from July 1 through June 30th.
      3. Total Salaries:  Total Salaries means total Salaries included in the Team Salary of All NBA Teams for or with Respect to a Salary Cap year pursuant to this Agreement.
        1. Formula for computing total SALARIES:  TOTAL SALARIES
          1. shall include the following:
            1. INCENTIVE COMPENSATION that has been excluded from salaries in accordance with Article VII § 3, subsection d, but actually earned by NBA players during such SALARY CAP YEAR;
            2. ANY AMOUNTS paid by the NBA to the Players Association for Distribution to NBA players pursuant to Article XXIX § 3, subsection c.
            3. The Aggregate SALARIES, if any, that are excluded from TEAM SALARIES pursuant to ARTICLE VII §§ 4, subsection h, and 12, subsection f(v).
            4. ANY AMOUNTS that a TEAM pays to its players pursuant to Article VII § 2, subsection b.
            5. ANY consideration received by a retired player that is included in Team Salary in Accordance with terms of Article XIII.
          2. Shall exclude the following:
            1. All incentive compensation included in Salaries in accordance with VII, §3, subsection d, but not actually earned by NBA players during such Salary cap year.
            2. The Team Salaries of Expansion Teams during their first two Salary Cap Years as determined in accordance with Article VII.
      4. Total Salaries and Benefits:  This means TOTAL SALARIES + TOTAL BENEFITS.
        1. Formula for calculating Total Salaries and Benefits:  Sum of Total Salaries plus TOTAL BENEFITS.
      5. Exception:  An exception allows a TEAM’s TEAM SALARY to exceed the SALARY CAP.
        • Example:
        • Types of Exceptions:
      6. Basketball Related Income:
        1. SEE:  VII § (a) and (b).
      7. Room:  In regards to the CBA, there are different meanings as to Room as demonstrated through the following:
        1. Team’s THEN-CURRENT $alary is less than the Salary Cap; OR
        2. A team is entitled to use one of the 6 exceptions
          1. pursuant to VII §6 c-g and j
          2. Disabled players exception
            1. Pursuant to Article VII § 6, subsection c.
          3. Bi annual Exception
            1. Pursuant to Article VII § 6, subsection d.
          4. Non-Taxpayer Mid-Level Exception
            1. (VII § 6, subsection e).
          5. Taxpayer Mid-Level Salary Exception
            1. Pursuant to VII § 6, subsection f.
          6. Mid-Level Salary Exception for Room Teams
            1. VII § 6, subsection f.
          7. Traded Player Exception.
  5. CONTRACTS:  FORMATION, MODIFICATION, TERMINATION, and OPT-OUTS:
    1. Formation-Related Terms
      1. Uniform Player Contract:  Is the standard contract used when a player is employed by any TEAM of the NBA.  Means the standard form of written agreement between a person and a Team required for use in the NBA by Article II, pursuant to which such a person is employed by  such team
        • Also Known As:  Player Contract or CONTRACT.
      2. Rookie Scale Contract:
        • Relevant CBA provisions:  Pursuant to VIII §1 or 2, b/t a 1st Round Pick and the Team that holds his draft rights draft rights.
      3. Negotiate:  In regards to the CBA, negotiate refers to the following:
        • Between Parties:
          1. Players:  A player or his representative is a party.
          2. Teams:  A TEAM or its representatives.
        • Medium:  Negotiation refers to that communication that occurs both through either written or oral mediums.
        • Subject matter:  In regards to this CBA, negotiation refers to subject matter that is anything relating to the possible employment or terms of employment of the player by a team as to the player being ta player for that team (does not matter who initiates the conversation).
      4. Renegotiation:  In regards to the CBA, RENEGOTIATE refers to a contract amendment that provides for an increase in SALARY and/or UNLIKELY BONUSES.
      5. Moratorium Period:
      6. Qualifying Offer:  [Defined pursuant to Article XI § 1, subsection c. ]
      7. Required Tender:  A REQUIRED TENDER has to do with a TEAM delivering an offer to its player within a required time period.
        1. Team Requirements:
          1. Time Period for Service:  Service must be on or before the date specified in the contract.
          2. Manner of Service:  The contract must be either (a) personally delivered to the player or his representative or (b) sent by pre-paid certified, registered, or overnight mail to the last known address of the player or his representative.
          3. Payment:
            • As to FIRST ROUND PICKS:  The contract must satisfy the requirement of the ROOKIE SCALE CONTRACT pursuant to Article VIII §§ 1 or 2.
            • As to SECOND ROUND PICKS: The contract must (1) have a stated term of at least one season and (2) calls for at least the MINIMUM ANNUAL SALARY applicable to the player.
        2. Player Requirements:
          1. Acceptance:  There are different standards of acceptance for both FIRST and SECOND ROUND PICKS:
            • As to FIRST ROUND PICKS:  A FIRST ROUND PICK has until the first day of the following regular season to accept the contract.
              1. Example:
              2. Applicability to Rookie Scale Contract:
            • As to SECOND ROUND PICKS:  A player has unitl at least the immediately following October 15 to accept.
        3. Optional Provisions:  An optional physical examination condition precedent may be included by any team, requiring a physician of the team’s choosing to evaluate the player beforehand.
        4. Note:  This is more or less procedural.
    2. B.  Modification-Related Terms:
      1. Extension:  An extension is an amendment that allows a lengthening of the contract for a specified number of years.
      2. The Designated Player Rookie Scale Extension: This contract must include the following: (a) the first SALARY CAP YEAR is (b) either (i) a max annual salary . . (tbd) . .
        1. Terms:
          • MAXIMUM ANNUAL SALARY: In reference to that allowed pursuant to Article II § 7
          • 1st ROUND PICKS: FIRST ROUND PICKS who satisfy the 5th year 30% max criteria may get a 1st year salary of the new extended term to be that of equal to anywhere between 25-30% of the SALARY CAP of that SALARY CAP YEAR.
            • 5th year 30% Max Criteria: In reference to that allowed pursuant to Article II § 7 (a)(ii)
            • 25-30 % of Salary Cap: Refers to that percentage allowed pursuant to Article II § 7 in light of a particular salary cap year.
              • Example:
        2. FORMULA:  Three Steps!
          1. Select a designated player:  one of your rookies!
          2. Select a category:  Calculate the max first salary allowed for your player by figuring out what category the player falls into:
            • 1st ROUND PICK and satisfies 5th Year 30% Max Criteria (pursuant to Article II § 7(a)(i)): If your player falls here, the salary for the player’s First SALARY CAP YEAR is equal to 25-30% of that SALARY CAP YEAR in effect the year of the new extended term (pursuant to Article II § 7).
            • Non-1st ROUND PICK and does not satisfy 5th Year Max Criteria (pursuant to Article II § 7 (a)(i):  If your player falls here, the salary for the player’s First SALARY CAP YEAR covered by the new extension must be equal to the player’s Maximum Annual Salary (pursuant to Article II § 7).
          3. 7.5% Salary Increase:  Each salary cap year after the first Salary Cap Year of the new extension must be at least 7.5%
        3. Note: This formula hinges on figuring out the first year of SALARY. The first year of the salary must be a max year, which is subject to two options:
        4. LIMITATIONS:  A team may have 2 designated player rookie scale extensions; however, a team may acquire one extension while signing another.  A team may not sign two.
      3. Option:  An option refer to a provision that affords either a TEAM or PLAYER with an option to extend the current player’s CONTRACT beyond the stated term.
        1. Example:
      4. Option Year:  An OPTION YEAR refers to the year that would be added to a PLAYER CONTRACT if an option is exercised.
        1. Example:
    3. Termination and Opt-Outs-Related Terms:
      1. Termination:
      2. Early Termination Option:
        • Relative CBA provisions:  Article X.
        • Practically:  This option is in favor of the player.
      3. Opt-Outs:
      4. Effective Season:  Essentially, this term refers to the first season covered after an opt-out.
        1. Relative CBA Terms:  OPT OUT and EARLY TERMINATION.
  6. V.  MISC
    1. Generally Recognized League Honors:  The following are examples of the league honors:
      • MVP
      • Finals MVP
      • 6th Man Player of the Year
      • Most-Improved Player of the Year
      • All NBA 1st Team Honors
      • All NBA 2nd Team Honors
      • All NBA 3rd Team Honors
      • All NBA Defensive First Team Honors
      • ALL NBA Defensive Second Team Honors
      • All-Star Selection
    2. Active List: A player is on an active list if he has a signed player contract.
    3. Inactive List:
      • Test:  (1) the player has a contract, (2) the player is ineligible to participate in a REGULAR SEASON game.
      • Ineligible:
    4. Regular Season:
      • Limits:  The regular season does not include exhibition or playoff games.
    5. Season:  A SEASON begins on the first day of training camp.  A season ends immediately after the last game of the NBA Finals.
    6. Audit Report:
    7. Agreement:

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