When the NBA finally gets underway next week, it will be under a new collective bargaining agreement — the rules that manage player movements, contracts, team finances, and other basketball-related activity. Before we get into details of what moves the Grizzlies might make during the compressed run-up to the season or what might happen on the court, we’ll start by taking a look at the new rules and what they mean for the Grizzlies.
In a general sense, the new agreement is comprised of two types of elements — financial system changes and “system” changes the league says are geared toward ensuring better competitive balance between large and small-market teams. Unsurprisingly, the league was firmer on the financial side, securing a significant pay cut from the players while relenting on a host of system issues to secure a final deal. The result is a CBA that should help all teams on the financial side and — provided the promised major enhancements in revenue sharing actually comes through — could significantly stabilize small-market teams. On the system side, the changes are more minor, but shorter, cheaper contracts with bring less overall risk and a bevy of restrictions should have at least some impact on the ability of big-market teams to horde talent.
If you want a good general overview of CBA changes, you couldn’t do any better than cap czar Larry Coon, who breaks the major changes down here.
Rather than explore every detail of the new CBA, I’m pulling out eight changes that seem most relevant to the Grizzlies and speculating on how each change could specifically impact the team:
Issue 1: BRI Split: After getting 57% of basketball-related income in the last deal, players will receive 51.15% this season and between 49% and 51% for the rest of this CBA. Because of the reduction this season from 82 games to 66 games, players salaries will be prorated accordingly.
What it Means for the Grizzlies: There are two relevant numbers when it comes to player salaries: Their listed salaries for cap purposes and what teams actually pay them in real dollars, and these numbers aren’t always the same. This season, all players will get have their salaries cut by 19.5% off the top because of the reduction in games. Further, the across-the-board cut from the BRI share reduction — a 10% cut this season and 10.5%-14% in following seasons — will mean teams as a whole will be spending less on player salaries relative to their revenues going forward. In real terms, this will put more cash into the Grizzlies coffers. A combination of reduced player expenses, increased revenue sharing (a non-CBA component we’re still waiting to get details on, but the league has promised to at least triple the current paltry rev-sharing system), and increased gate receipts (from having a good team and a better season-ticket base) should combine to add, at minimum, an additional eight-figure bonus to the team’s bottom line each season. This may well make the Grizzlies profitable and should at least mitigate losses, making the team more stable financially and increasing owner Michael Heisley’s willingness to keep payroll high enough to compete. For all the talk of “competitive balance,” the biggest issue for small-market teams like the Grizzlies is financial viability, and the combination of lowered BRI share for players and increased revenue sharing should bring significant help in that area.
