Last year

NBL and ABPA negotiate new Collective Bargaining Agreement

- the CBA will increase the NBL's minimum salary by 38 percent — now set at $55,000
- development players will now earn a minimum salary of $17,000
- clubs will now provide health insurance to all players
- salary cap will be increased to $1.43 million for the 2019-20 season; an up-tick from $1.1 million.

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Last year

RIP regional teams.

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Last year

And they police the salary cap?

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Last year

As I read it the salary cap is adjusted for next season effective today. How is this equitable when players have been signing and re-signing since last season under a different structure.

Reply #744836 | Report this post

Last year

Yes that's true, what happens if a team has negotiated and signed and somehow end up below the new floor?

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Last year

There is no policing though, right? It's a 'soft cap'

Reply #744860 | Report this post

Last year

The only effect of the Salary Cap is as follows:
(i) Setting the Salary floor (90%) that clubs must pay.
(ii) Setting the "Bench-Cap" which applies to the 5 lowest paid players.
(iii) As the basis for determining how much "tax" is payable by clubs exceeding the soft cap.
(iv) Calculating the re-distribution of the tax to clubs that can't meet the salary floor.

Most players are paid based on "market" value, as there is no need to fit within a hard cap.
The only players who might have been disadvantaged by this are bench players who were given low offers so as to fit within the bench-cap, but still thought they were well above minimum (say around $60~70k) but now find themselves earning barely more than the minimum-wage spuds.

That said, the cap is based on the average paid, so clubs would have been expecting an increase.

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Last year

"RIP regional teams"

By increasing the salary floor, (all other things being equal) this will increase the re-distributions to the struggling clubs.

Raising the minimum salary may also be a blessing in disguise, as it forces them to be more competitive for bench players. (Rather than just being stuck with the absolute scrubs nobody wants.)

Reply #744864 | Report this post

Last year

Health insurance potentially represents a huge improvement in security for players. Does this include payments for serious or career-ending injuries? If so, does it include retraining and career placement support? There's an NRL player (Newcastle) who has been guaranteed employment and ongoing support.

DPS could now survive whilst studying (the NBL season suits a Uni academic year, as you don’t really need to do much before Easter and it’s all over around October/November). This might become more attractive for the less elite US College candidates.

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Last year

I would have thought that the team would have Health Insurance already paid. The Benchies and Dp's wouldn't however had that paid by the club.

Reply #744881 | Report this post

Last year

"By increasing the salary floor, (all other things being equal) this will increase the re-distributions to the struggling clubs."

That depends on the size of the redistribution pool available.

Raising the cap will also decrease the amount of luxury tax available for redistribution next year, unless the clubs spending over the cap increase their overspending as fast as or faster than the cap has grown.

In addition, unless struggling clubs increase their base revenue by as much as or more than the floor will rise next year, they'll need a larger redistribution pool then.

It's a tricky balancing act. I wonder if the cap has not been raised as much as it could have been, partly to manage this tension?

A mitigating factor this season may be the entry of SEM Phoenix. If they spend over the cap, that will increase the redistribution pool.

Reply #744883 | Report this post

Last year

The redistribution only gets clubs from where they would otherwise be, up to the Salary floor.
I don't know exactly how you verify what their capacity to pay is without the help, but they must have a way.

Yes, I imagine that setting the cap has been somewhat of a juggling act to ensure there are enough funds available in the scheme.

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Last year

can players like Bogut Boone be payed as a assistant coach to the younger bigs

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