NBA Chat with Larry Coon 1/19/2017

Larry_Coon_ChatLarry Coon the noted author of the CBAFAQ, will answer your Salary Cap and Collective Bargaining Agreement questions. Larry will answers your questions about the Salary Cap, NBA trades and the CBA at 3:00 p.m. ET.

  1. Yura

    Any new amnesty for contracts

    • Larry Coon

      Nope. The league puts amnesty clauses into new agreements when it makes fundamental changes like imposing or increasing the luxury tax — when decisions teams made years before, such as signing expensive, long-term contracts, aren’t as good because of the changing economics. There are no such big changes to the league economics in the new agreement, so no amnesty.

      To add an amnesty to the current agreement would amount to giving teams a get-out-of-jail-free card for bad decisions, which effectively punishes teams that consistently make good decisions.

  2. Deven

    In terms of the Raiders moving to Vegas, what makes NFL relocations different from NBA relocations? Why does it happen more in the football than in basketball?

    • Larry Coon

      I don’t know anything about the relocation process for the NFL or how it compares to the NBA’s. I can say that in the NBA, they pay close attention to:

      * Support in the existing location by fans, TV and sponsors, and how well the management performs in the current market.
      * The ability of the existing location to support an NBA team.
      * The ability of the new market to support a team.
      * The ability of team management to operate a team in the new location.
      * The effect of the relocation on the league’s nationwide geographical diversity.
      * The effect of the relocation on the current broadcasters, sponsors, etc.
      * Adversities (travel, regulatory, etc.) in the new location.
      * The interests of the other teams in having a team in the new location.

      In general, the league has been pretty conservative and risk averse in approving relocations, and with the exception of having some markets without teams, has a pretty good demographic balance. There hasn’t been a clear “what the hell?” situation like a city the size of Los Angeles with no team for two decades.

      And Vegas presents its own challenges, so it’s easy to see why their being conservative with regard to Vegas is justified.

  3. Deven

    With Rudy’s Achilles Injury, how likely are the Kings going to make a move now?

    • Larry Coon

      They’ll definitely be making phone calls, but they need to rebuild around Cousins, and not just be thinking about the short term. Replacing Gay will require giving up assets, and the Kings don’t have many of those.

  4. Deven

    Why is the league reluctant on expanding? Seattle deserves a team!

    • Larry Coon

      This is Part B of my answer, where Part A was on relocation. There might be room for two more teams, but remember, every team that gets added eventually gets a fair slice of the revenues, so other teams have to see any addition as generating enough revenue to justify the extra split. One of the big factors is having an NBA-ready arena, and Key Arena just doesn’t suit the NBA’s needs any more. They need either a new arena or an extensive renovation of Key Arena. Last I heard there was interest in a Key Arena renovation, but nothing has been announced.

      So two hurdles to overcome: 1) League interest in expansion; and 2) Providing a suitable arena.

  5. Bo

    Hi Larry.
    For the experience requirement for “Designated player Veteran extensions”, is it applies to players entering 8th or 9th yr for extensions and following 8th or 9th yr for free agents? Will Hayward or Griffin meets the expierence qualifier if he opt out and opt in respectively?
    If it only applies to players entering 8th or 9th year for both exntension and free agent, will it force the free agents that finished his 9th year in NBA to sign 1+1 and cannot benefit from DPVE?

    • Larry Coon

      The idea behind the Designated Veteran contracts is that they provide a THIRD contract for star players, after their rookie scale contracts and then their rookie extensions. These players would be hitting free agency after their 8th & 9th seasons, which means extensions would need to be signed after their 7th & 8th seasons. Griffin will have 8 years of experience if he invokes his ETO, or 9 years of experience if he plays out his contract. Hayward would have seven if he opts out, or 8 if he plays out his contract. So Griffin qualifies either way; but Hayward has to opt in.

      And you’re right — the Designated Veteran rule won’t apply if the player has finished his ninth year.

  6. Max Trueblood

    Do we have clarification on cap holds? Stephen Curry would’ve been at 150% in the old cba but rumors swirled that the cap hold will be larger this time. What do you know about it?

    • Larry Coon

      In the term sheet (there is only a term sheet thus far, and not an actual CBA), there are two changes relating to cap holds:

      * Cap holds for unsigned first round picks will change from 100 percent of scale to 120 percent of scale.

      * Cap holds for players finishing all four years of their rookie scale contracts will increase from 200 percent to 250 percent, and from 250 percent to 300 percent (depending on whether the previous salary was above or below average). This change is effective in 2018-19.

      Since Curry doesn’t fit either criteria, his cap hold will remain the same.

  7. JD

    The Lakers overpaid on the contracts for Mozgov and Deng and the contract is way to long, do you think they could trade either of them?

    • Larry Coon

      I think differently about the two players. I think Deng is a bad fit (he really needs to play 4) and it will only get worse over time as Brandon Ingram continues to develop. I think he still has value to the right team, and I think the Lakers could find a deal that works. His salary is a little high at $18M (if you consider average starter money to be $15M), but it’s not that bad. Plus it doesn’t have max raises built in — it actually goes down next season before climbing back to the same $18M in 2018-19. Mosgov, on the other hand, fills more of a need, and reflects the big-man premium. I don’t really see a lot of opportunities to improve the club by moving Mosgov.

      I think both players were signed too long with four-year contracts. I was saying all along that the worst thing a team could do with the 2016 free agent class was to sign an excessively long deal, and that’s what the Lakers did with these two players. Mosgov I can understand, since they wanted to lock him up right away before turning their attention to other matters. But Deng was signed later in free agency. I know that a fourth year was what enticed him to LA, but I disagree with the decision to offer it.

  8. Ben Jammin

    Will Andrew Wiggins be eligible for that Super Max extension in 9-10 years, given that he was traded from the team that drafted him?

    • Larry Coon

      A player is eligible for a Designated Veteran contract if he is traded during his first four years in the league. So yes, Wiggins would qualify if he’s otherwise eligible.

  9. Jeremy

    Are you surprised that the players have accepted (as far as I know) the same percentages of BRI as the last CBA? The prevailing expectation seemed to be that the players expected something back after making sacrifices last time, and yet they seem to have settled for redistribution amongst themselves. I understand BRI is much larger now now, and they want to avoid a stoppage, but this was still a surprise to me, especially given how contentious a point it was last time. Collectively, what have they gained? Are you surprised how little (or how much) they agreed to?

    • Larry Coon

      It was a surprise to me that they agreed on that point so quickly. That was the narrative I had heard all along from the players’ side as well — the players “took one for the team” when a sacrifice was needed, but now that the economy is fixed they want to be made whole again (or at least regain some of what they had given up). But the message I heard from the league’s side was that even though the percentages were lower, the raw numbers were much higher — the players are making 50 percent more now at 51 percent of the revenue than they made in 2011 at 57 percent of the revenue. I was told that the raw numbers would hold much greater sway than an abstraction like the percentage of the split — and they were right.

  10. Deven

    Last Year, the Warriors exceeded the amount of national tv games towards the end of the season, since they were making history and chasing 73 wins, which they did. But what makes the league want to bump certain teams off national tv and replace them with other teams?

    • Larry Coon

      It should be obvious — the league is in the business of gluing eyeballs to TV sets.

  11. Connor

    On the designated player example above: Blake’s DNP-injury rookie year counts toward that threshold even though he won rookie of the year during his second year. So the same would apply to Joel Embiid near the end of his second contract, right?

    • Larry Coon

      Griffin is credited with seven years of experience right now, which includes the year he missed. Same holds for Embiid — he has two years of experience right now. Don’t let the crazy criteria they use for league awards confuse you.