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The NBA is currently as lucrative and as competitive, top to bottom, as it’s been at any point in league history. But there’s a reason why billionaires are billionaires and team owners will always look to find a way to make an extra buck.
Some owners, such as Joe Lacob and Steve Ballmer, would tell you that the best way to make money is to have a successful product. But others seem to believe that’s too difficult, so they’d appreciate it if those owners stopped spending so much money.
A bombshell report on Friday afternoon revealed that the NBA is pursuing a hard cap, as opposed to its current luxury tax model, in negotiations with the NBAPA, and fans aren’t happy about it.
NBA Could Be Destined For Lockout As Owners Seek New Hard Cap On Salaries
ESPN’s Adrian Wojnarowski first broke the news of the potential change on Friday afternoon.
Story filed to ESPN: The NBA is pursuing the implementation of an upper salary limit in its negotiations on a new collective bargaining agreement with the National Basketball Players Association, a systematic change that has been met with significant union resistance.
— Adrian Wojnarowski (@wojespn) October 28, 2022
Sources: NBA pursuing upper spending limit in new agreement with NBPA – via @ESPN App https://t.co/GGxe65UQ4t
— Adrian Wojnarowski (@wojespn) October 28, 2022
Wojnarowski detailed the potential change in a full report, as well as what it would mean for the league moving forward.
The NBA is pursuing the implementation of an upper salary limit in its negotiations on a new collective bargaining agreement with the National Basketball Players Association, a systemic change that has been met with significant union resistance.
In the wake of large-market contenders Golden State, Brooklyn and the LA Clippers running up massive payrolls and luxury tax penalties, the NBA is proposing a system that would replace the luxury tax with a hard limit that teams could not exceed to pay salaries, sources said. – via ESPN
The NBAPA is, unsurprisingly, not a fan of the new proposal.
“The league’s proposal has been met with the firm resistance of the NBPA. To the point of the union considering it a nonstarter in discussions,” Wojnarowski wrote.
Any such rule would likely deflate player salaries. It would also significantly limit the amount of spending league-wide.
Basketball fans were not a fan of the new proposal.
here's an idea for nba owners complaining that the warriors, clippers, etc. are outspending them: spend more. thanks, i'll be here for any follow-up questions
— @HyyyypeHoops (@hyyyypehoops) October 28, 2022
Clarification: NBA is terming its proposal as a “way to reduce how much NBA players can earn in their contracts while letting the owners spend less money on talent” in talks with NBPA.
— Steven Chew (@GimmehMyMoney) October 28, 2022
Gentle reminder: if you side with ownership in labor disputes, especially related to salaries, you are an asshole.
— John McNish (@dadmcnasty) October 28, 2022
The current collective bargaining agreement between the NBA and NBAPA expires in 2024. A lockout now appears more likely than ever before with the new proposal.
If that’s the case, the league’s owners have no one to blame but themselves.