NBA – The players’ union, the NBA and the owners have still not reached an agreement and are still postponing the joint exit date from the current collective agreement.
The two additional months of negotiations did not make it possible to find an agreement, but ESPN specifies that the NBA would have decided to abandon the idea of a “hard cap”, ie the establishment of a « salary cap » strict, to prevent franchises like the Clippers or the Warriors from spending lavishly to play for the title, to the detriment of much less wealthy franchises, which cannot afford to pay the « luxury tax ».
This would be the main obstacle in the discussions when the NBA has never been so well, and that the two parties have every interest in avoiding a traumatic lockout like in 1995, 1999 and 2011.
As for the 30 franchises, this uncertainty about the next collective agreement would have an influence on their strategy for the end of the transfer market since they do not know what the payroll settlement will look like. But the abandonment of the “hard cap”, if confirmed, should unblock certain exchanges.
– Salary cap
: this is the payroll defined by the NBA. For the next season, it is announced at 125 million dollars, but could be even higher. NBA franchises have the ability to override it when extending their own players or through “exceptions.”
– Luxury tax : in the NBA, the salary cap is not strict, and the NBA authorizes the richest franchises to exceed the threshold set with a tolerance margin of approximately 20%. In this case, next year, the franchises would normally have been able to spend up to $139 million. Then, for every dollar spent above this cap, franchises must pay the “luxury tax” to the NBA. A kind of tax that can be very expensive, and candidates for the title usually pay tens of millions of dollars each year. A sum then donated to franchises, good students, who have not paid the “luxury tax”
