With the unofficial, metaphorical ink on the tentative CBA structure beginning to dry, we’ll take to look at how the new agreement impacts the Dallas Mavericks teams of today and tomorrow.
The new collective bargaining agreement is like catnip to NBA fans, who appreciate the return of the league as a general rule, and also have an unquenchable thirst for rumored roster moves. Few things generate excitement on par with a prominent player switching teams, and the amnesty clause included in the new agreement theoretically allows for all kinds of movement involving all kinds of interesting players.
At this point, the clause itself likely needs no introduction. But for those unfamiliar, here is the provision in question, written out in this detailed memo (via SI.com) in plain English:
Each team [is] permitted to waive 1 player prior to any season of the CBA (only for contracts in place at the inception of the CBA) and have 100% of the player’s salary removed from team salary for Cap and Tax purposes.
The rumors that dance through all of our heads are two-fold: not only are there intriguing decisions regarding whether teams should cut players using the amnesty clause at all, but also the possibilities governing which released players end up signing with which teams. Dallas is not a likely landing spot for any of the top amnestied players, for the sole reason that the team lacks the cap space to participate in one of the quirkier elements of the amnesty rule itself:
A modified waiver process will be utilized for players waived pursuant to the Amnesty rule, under which teams with Room under the Cap can submit competing offers to assume some but not all of the player’s remaining contract. If a player’s contract is claimed in this manner, the remaining portion of the player’s salary will continue to be paid by the team that waived him.
With the unofficial, metaphorical ink on the tentative CBA structure beginning to dry, we’ll take to look at how the new agreement impacts the Dallas Mavericks teams of today and tomorrow.
The NBA’s owners entered collective bargaining with several specific goals in mind. Among them: to limit the flexibility of taxpaying teams as much as possible, creating a systemic conflict between high payrolls and roster freedom. As a part of that objective, the new agreement includes a completely remodeled set of salary cap exceptions that reward teams for staying under the tax line, and restrict the free agent involvement of spend-happy clubs like the Mavericks.
Dallas will likely be a luxury taxpayer again next season; so the franchise has been for the last six-plus years, and so they may be for the next several. Such is the price of keeping this particular contending core in place. Mark Cuban will be mindful of the wrath of the repeater tax, but that likely won’t stop him from keeping his team in tax territory for the first two seasons of the new collective bargaining agreement, during which he’ll only face a $1-for-$1 luxury tax penalty akin to that of the previous CBA. Cuban has shown a willingness to foot the bill on that tax, but would be understandably reluctant to pay according to the exorbitant demands of the more demanding luxury tax rules that will become active for the 2013-2014 season.
But the Mavs’ taxpaying status will still affect their offseason plans on a more immediate timeline. According to a memo detailing the tentative agreement between the players and owners (via SI.com), taxpaying teams will no longer have access to the league’s mid-level exception (a salary cap exception used to sign free agents for up to around $5 million per season); instead, they’ll be forced to make do with the “taxpayer mid-level exception,” a provision that allows for the signing of a free agent to a deal up to three years in length (rather than four) starting at a mere $3 million.
With the unofficial, metaphorical ink on the tentative CBA structure beginning to dry, we’ll take to look at how the new agreement impacts the Dallas Mavericks teams of today and tomorrow.
While James Dolan’s luxury tax spending in the mid-2000s would put any other overspending owner to shame, Mark Cuban has shown an impressive tolerance for substantial tax payments so long as the Mavericks are competitive. And, in case you hadn’t heard, Dallas has been competitive for quite some time; 11-straight 50-win seasons has not only put the twinkle in Cuban’s eye, but also the dent in his wallet.
That long-term investment finally paid off with a championship this past June, but the new, more punitive luxury tax could bring hell to Cuban’s finances if he the Mavs continue on their usual spending course. Here’s an excerpt from the league’s official memo outlining the terms of the recent agreement, as release by SI.com:
Beginning in year 3, Tax rates for teams with team salary above Tax level are as follows:
Incremental Team Salary Above Tax Level
Tax Rate
$0-$5M
$1.50-for-$1
$5M-$10M
$1.75-for-$1
$10M-$15M
$2.50-for-$1
$15M-$20M
$3.25-for-$1
Tax rates increase by $0.50 for each additional $5M above the Tax level (e.g., for team salary $20M-25M above the Tax level, the Tax rate is $3.75-for-$1).
Tax rates for teams that are taxpayers in at least 4 out of any 5 seasons (starting in 2011-12) increase by $1 at each increment (e.g., for team salary $5M-$10M above the Tax level, the Tax rate for a repeat taxpayer is $2.75-for-$1 instead of $1.75-for-$1).
All of this luxury tax adjustment has been made in the hopes that the variation in spending between teams will be mitigated. Cuban himself has been a proponent of just such a position in the past; as much as out-spending the competition has been one of the Mavs’ distinct advantages, Cuban himself is naturally less than enthused about shelling out extra money for luxury tax payments. A high payroll is one thing, but a high payroll that creates further financial obligations via the tax is another one entirely.
Amid all of the lockout nonsense, yesterday actually brought some fairly good news for Maverick fans: according to ESPN.com’s Chris Broussard, Tyson Chandler, who was being pursued by the Zhejiang Guangsha Lions of the Chinese Basketball Association, has opted to reject the team’s offer and remain stateside. As a free agent, Chandler was among the limited number of players who would actually be allowed – per a recent CBA ruling — to sign in China, and the fact that he turned down the offer could be seen as an initial indication that Chandler might skip out on overseas basketball altogether.
Which, given Chandler’s somewhat fragile injury history, is the greatest victory Mavs fans can claim on a day ruled by the lockout’s legal proceedings.
Yesterday marked Day 132 of the NBA lockout, and the first practice day for the Mavs’ D-League affiliate, the Texas Legends. HittingNothingBut.Net offers plenty of video from that practice session, including this bit from Legends head coach Del Harris:
Nothing revolutionary, but a smart point brought up by Harris on the offense/defense dynamic in a practice setting. We often limit our consideration of basketball to what occurs in-game and conversely, see practice as an ambiguous cure-all. But the path toward improvement requires a good sense of both offensive and defensive logistics.
Every bit of optimism that has seeped into the collective bargaining negotiations has been dealt with in short order. The NBA is uncompromising, and the players’ willingness to negotiate has been coopted by hardline owners as a free avenue for player concessions. The owners have given little to nothing in return, and now yet another arbitrary deadline threatens the 2011-2012 season altogether.
On a more local level, Tyson Chandler discussed another sobering reality on the Ben & Skin show on ESPN Radio in Dallas: even if the players and owners do somehow get a deal in place to end the lockout, the likely luxury tax framework of such a deal could prevent Chandler from re-signing with the Mavs:
“With the collective bargaining agreement and some of the things that they’re trying to enforce, it would basically prohibit me from coming back. It would take it out of my hands — and the organization’s — because it would almost be pretty much impossible for me to re-sign. I just think that can be the worst thing that can happen. For years, the Lakers have been able to win championships and re-sign their players and keep them there so they can go out for another title. Now, to put that deal in place after we win ours, I don’t like it one bit.”
Chandler’s concerns are real. An actual hard cap is almost an impossibility at this point, but a soft cap with harsher penalties for taxpayers is virtually guaranteed. That could deter Dallas — a team already committed to $64.7 million in 2011-2012 salary before accounting for the potential re-signings of Chandler, Caron Butler, J.J. Barea, DeShawn Stevenson, Brian Cardinal, or Peja Stojakovic — from bringing back its second-best player. Considering that Chandler would cost more than double of what would surely be a substantial salary, no one should blame Mark Cuban for refusing to foot the bill, even with the added cost of losing out on top-tier contention.
I was honored to join Rahat Huq (of Red 94) and Tim Varner (of 48 Minutes of Hell) for what we’re hoping will be a bit of a recurring feature: a three-man panel dealing with pertinent, Texas-centric NBA questions. Like it or not, the competitive dynamic between fans of the three Texas teams is very real. The rivalry between the Mavs and Spurs is undeniable, and though the Rockets haven’t butted heads with the Mavs in any kind of formal fashion since 2005, geography alone makes competitive run-ins — among fans and among the two teams — a frequent occurrence.
To have a little fun on that theme, Huq, Varner and myself voiced our picks for the best Texas ballplayer of the last 20 years, the most significant event in Texas basketball over that same timeframe, and the Texas team with the brightest future. Even with the Mavs’ core seemingly on their last legs, the answers to that final question may surprise you:
1. Tim Varner: Dallas. Mark Cuban has the means and the vision to field a competitive team on an annual basis. Cuban is an innovator whose dedication to winning finally brought home a trophy last season. I see that continuing, even after Dirk Nowitzki retires.
2. Rob Mahoney: None of the Texas teams are particularly primed for the long haul, but I’ll go with Dallas. Dirk Nowitzki could contribute in the NBA until he’s 50 if that’s his aim, and the Mavericks have the infrastructure to reboot with relative ease. Mark Cuban, Donnie Nelson, and Rick Carlisle give Dallas the means and savvy to transition quickly, and it doesn’t hurt that the Mavs also have a few young pieces (Rodrigue Beaubois, Dominique Jones, Corey Brewer) to fiddle around with.
3. Rahat Huq: I’ll say Dallas. You have to get really bad to get good as titles are won through the draft. Mark Cuban is the only boss from any of these teams to have made public acknowledgment on this point (stated last year at the Sloan Analytics Conference) so I trust he’ll tank when it’s time. Meanwhile, the Rockets are on a track to pick 14th every year and we’re not sure what the Spurs are planning.
Now that we’re crossing off days and games from the formerly official NBA schedule, lockout remorse becomes a bit more concrete. Gone is the sense of dread, but in its place, one of actual loss.
With that in mind, Jesse Blanchard of 48 Minutes of Hell added some levity. Last night would have marked the Mavericks’ first ever ring ceremony and the illustrious raising of a championship banner…but apparently Mark Cuban had to settle for a smaller, more private ceremony: