SUMMARY OF PRINCIPAL DEAL TERMS
(November 26, 2011)
1. BRI Split
Ã¢ÂÂ¢ Basketball Related Income (BRI) is split 50%/50% each season between the players and teams, and, in addition:
Players receive a greater share of BRI to the extent BRI exceeds projections, and a smaller share of BRI to the extent BRI falls short of projections. Specifically, the players' share (i) will be increased by 60.5% of incremental BRI in excess of projected BRI for each season, and (ii) will be reduced by 60.5% of the amount by which BRI falls short of projected BRI for each season; and
The players' resulting overall share of BRI in a season is no less than 49% and no greater than 51%.
Ã¢ÂÂ¢ In Year 1 of the agreement, players will receive a pegged amount equal to 51.15% of BRI (with no upside or downside), and, assuming we are able to complete the agreement and open for business on December 25, player contracts will be prorated such that players will receive 66/82ds of their stated contract amounts.
2. Salary Cap/Tax System
Ã¢ÂÂ¢ System includes a Soft Salary Cap as under the 2005 CBA.
Ã¢ÂÂ¢ Salary Cap and Tax levels set in relation to the projected escrow level (escrow level equals 50% of BRI, less Benefits, divided by 30) in same proportions as under the 2005 CBA. Salary Cap and Tax levels in years 1 and 2 to be no less than their 2010-11 levels.
Ã¢ÂÂ¢ Salary Cap Exceptions the same as under the 2005 CBA, except as follows: Non-Taxpayer Mid-Level Exception: Set at $5M in years 1 and 2, growing 3% annually thereafter; maximum contract length of 4 years; can be used every year. Taxpayer Mid-Level Exception: Set at $3M in year 1, growing 3% annually thereafter; maximum contract length of 3 years;...