Wednesday, July 06, 2005

 

Details coming out...

Hats off to Bruce!

Bruce Garrioch's details regarding the CBA in the July 4th Toronto Sun are "100% right" according to a source close to the deal... "A hard cap set at 54% of league revenues -- which are projected to drop by $300 million to $1.8 billion (all terms US) next season -- that will include all player salaries, signing bonuses and performance bonuses. (A $2.2 million allotted for insurance and pension plan contributions is not be included in that figure.) The cap will be in the $39 million range, with a floor of about $24 million. There's talk of a dollar-for-dollar luxury tax starting around the $30 million mark, with that money redistributed to lower revenue teams."

That luxury tax, I have heard, will be a dollar for dollar luxury tax for payrolls over the midpoint salary.

Bruce goes on to talk about the fact that a portion of players salaries will be put into escrow, until revenues are figured out. This he claims will be a potential sticking point for the players. I talked to a player last night and asked him if it was...

"It's not something you jump for joy about,"the player continued, " but it is what you do with a linkage deal I was told. It is what the NBA does. If we agreed to a linkage deal, this will be in there. I think a lot of the guys are nervous because when they hold your money you have to trust them on their revenues. Before this CBA , that would have been a very large issue. I was told that over 60% of the time in these talks they are meticulously determining ways to take the trust out of it. Make the revenue accounting as automatic as possible. So yes it makes me nervous for the first time, until we see how it works. Will it make me vote against the deal. No. I trust Trevor and company have done their job. I want them to take as much time as they can so all the money is accounted for."

just one players opinion, but he didn't see this being the deal breaker for the union...

stay tuned...



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