December 15th is an important date in the NBA every season because that is normally the day that players who signed new contracts in the offseason become eligible to be traded.
Trade talks will normally pick up after that point leading up to the deadline, but this year, that date has another significant meaning.
This year, December 15th is when the NBA and Players Association have a mutual opt-out date for the current collective bargaining agreement. There have already been some discussions about key points that they will bargain over.
Next week the sides will meet face to face in a meeting that will help set the table heading toward that opt-out date. There is optimism that things will head in the right direction as the two sides have been working closely together for more than two years since the COVID-19 pandemic began.
LATEST NBA NEWS: Updates On Future Luxury Tax Changes & Salary Cap Projections
One of the more difficult topics of discussion that will be held is what to do with the luxury tax. Shams Charania of The Athletic provided an update on the situation as harsher luxury tax penalties could be added to the CBA.
“While the prospect of a hard cap on team salaries appears to be a non-starter for the NBPA, more punitive penalties for the luxury tax system is a point of emphasis for the league and some team governors. Team executives believe the tax penalty will be arguably the biggest issue to resolve in the next CBA.
However, changing the overall structure of the tax could be an aspect both sides address.”
A hard cap would limit how much money teams could spend on their roster, which is something the players would certainly be against. Going above the salary cap and paying luxury tax enables teams to retain their players, albeit at a steeper price and with some penalties. In that scenario, the players at least get their money, which wouldn’t happen with a hard cap in place.
LATEST NBA NEWS: Updates On Future Luxury Tax Changes & Salary Cap Projections
Money is always a contentious point of discussion during CBA negotiations as everyone wants a bigger piece of the pie. There is going to be an influx of money into the league in the coming years with new television rights and the salary cap expected to skyrocket.
Hopefully, the positive environment and momentum that was created with all of the amendments in the last two years will lead to things getting resolved on this matter quickly and without any snags. As the pandemic proved, no one really wants a work stoppage as it hurts both sides and everyone involved.
Discussion about this post