Salary caps in sports are nothing new. Its origin in basketball can be traced back to the salary cap of $55,000 in the first season of the league, 1946-47. Most players earn between 4000 and 5000 dollars, but there are a few exceptions. Like Tom King of the Detroit Falcons. He got the highest salary in the league, 16500 dollars, not only because of his playing ability, but also because of his front office duties as the team's propaganda director and business manager. Philadelphia star scorer joe fulks earned $8,000 with his league-leading 23.2 points per game (the Kings' rookie season was a bit unsuccessful). He averaged 5. 1 point in his only year, and the Falcons went out of business at the end of the season.
From 1946 to 1949, top players try to exploit the leverage of two competitive alliances, the American Basketball Association and the National Basketball Association, to open up a fair living space for themselves. George Mikan, the top player of that era, signed a five-year contract with the Chicago American Gear Team, worth $60,000 plus 1946 incentives; Bob Davies of Rochester Royals is regarded as the top defender in basketball, and he got a four-year contract of $50,000. Hall of Fame forward Jim Pollard signed with the Minneapolis Lakers for 1947 USD per year. BAA was able to persuade the four best NBL teams: Minneapolis (featuring Mikan and Pollard), and Indianapolis, fort wayne and Rochester (bringing Davis) to change their leagues in an effort to give full play to their advantages. However, NBL is far from dead. In 1949, NBL shocked BAA and awarded the franchise to a group of former university stars from the University of Kentucky (including Alex Groza and Frank Beard, both of whom are the most promising people), and each of them will receive a salary of10,000 US dollars. These two once deadly leagues merged into the National Basketball Association, leaving players with two choices: playing with the salary paid by the NBA, or playing amateur sports league basketball for a company team (such as the Phillips 66 ers, Akron goodyear or Pioria Caterpillar), which is the choice of some top players including Clyde Lovett, Jim Pollard and George Yardley.
Through 1954, the economic conditions remained unchanged. At this point, robertjoseph cousy, the top player of the league, began to organize NBPA, which will become the first league of team sports athletes. Cousy began to write letters to the old players of all the league teams (paul arizin in Philadelphia, karl braun in New York, Bob Davies in Rochester, Paul Hoffman in Baltimore, andy phillip in fort wayne, Pollard, dolph schayes in Syracuse and Don Sunderland in Milwaukee), hoping to encourage the players to unite. Everyone responded positively except Philip (among all bosses, Fred Czollner of fort wayne, who owns a machine factory, was the staunchest trade union opponent, which prevented the participation of the Pistons). Cousy then put forward a series of questions to NBA President Maurice Podolov at the 1 month 1955 NBA All-Star Game: paying the unpaid wages of the members of the dissolved Baltimore Bullets Club; Set a limit of 20 exhibition games, after which players should share the profits; Cancel the "silent fine" of 15 dollars that the referee can impose on the players in the game; Pay a public appearance fee of $25, excluding radio, television or some charitable activities; Establish an impartial arbitration commission to resolve disputes between players and bosses; Trading players' transfer fees; And pay the player's salary in 10 instead of 12, so as to provide more money for the players laid off during the season. Podoloff agreed to pay two weeks' wages to six players who played for Baltimor e before the franchise ended, and promised to meet with the players' representatives about their concerns within two weeks.
Podolov and the league owner continued to postpone the players until Cousy met with AFL-CIO officials on possible alliance relations in 1 month. The league then agreed to negotiate sincerely with the players' union after the season ended. In April, the NBA Board officially recognized the NBPA and agreed to their conditions:
-Suspend the whisper fine.
-$7 per day and other reasonable travel expenses
-Add 1957-58 playoff seats.
-Official players will no longer need to report to the training camp four weeks before the season.
-Cancel the exhibition games within three days of the season opener or the day before the regular season, and limit the season to three exhibition games.
-Players' contracts will be sent before September 1 day.
-Submit the dispute between the player and the boss to the chairman of the NBA League or a committee composed of three NBA directors selected by the player.
-Provide thoughtful service to players on radio and TV programs.
-reasonable transfer fees for players traded during the season.
In 1958, with the victory of the fledgling league, Cousy resigned as the chairman of NBPA after being frustrated that many players did not pay the annual league membership fee of 10. His Boston teammate Tom heinsen will succeed him as chairman of the union.
Under the leadership of heinsen, the trade union will take a more active attitude in the negotiations with the Union. New york's heinsen, Shayes and Richie Guerin reached an agreement with the boss on the player's pension in 1 month. The bosses agreed in principle to the pension plan for league players, and the details will be worked out at the meeting starting in February. Before that, the players set a goal, that is, the players who have served for five years will be 100 USD per month at the age of 65, and the players who have served for 10 USD per month at the age of 65.
Negotiations failed to reach an agreement. On 1962, after meeting with several candidates, heinsen hired lawyer Lawrence Fleisher as the general counsel of the League in an effort to obtain a pension plan and achieve other league goals (including standardizing the use of team coaches, canceling Saturday night's game before Sunday afternoon TV competition, increasing the daily allowance of players, reducing preseason games, and free agency of players).
It was not until 1 month 1964 all-star game that there was little progress. This game is an important national TV exposure of the league, and it also provides a unique opportunity for players. Due to the lack of pension agreement, the players threatened not to participate in the game. A few minutes before the game, NBA President Walter Kennedy personally promised that the pension plan would be approved at the next owners' meeting in May, when they approved a plan in which they would contribute 50% to purchase a donation policy of $2,000.
Heinsen will remain president of NBPA until oscar robertson of Cincinnati succeeds him in 1966. Robertson's first major move was to announce at the 1 967 All-Star Game in1month that players would ask their bosses to pay for their exhibition games, and the limit on the number of performances would be reduced from 15 to 10. NBPA hoped to meet with the representatives of Major League Baseball and National Football League players to discuss more solidarity among professional athletes. The tension between the union and the boss escalated until the boss announced in March that the playoffs would be cancelled unless the players promised to "abide by the contract" and participate in the playoffs as scheduled. The union then responded by threatening to apply for certification from the National Labor Relations Board and going on strike in the playoffs in an effort to upgrade their pension plans. The dispute was quickly resolved and the players received an agreement, including:
-provide a monthly pension of $600 for players who have served 10 years at the age of 65, and trace it back to the beginning of the career of all active players.
-New medical and insurance benefits
-Cancel the all-star game.
-82 games in the regular season.
-Discuss exhibition remuneration.
-Set up a committee to review standard player contracts before the 1967-68 season.
Before the 1968-69 season, the league and NBA reached an agreement on their first revision of the standard player contract, which will increase the salary, and the minimum rookie salary will be raised to10,000 US dollars, 1968-69 and13,000 US dollars, the minimum pension veteran.
With 1967, a new rival league, American Basketball Association, was established, and players' salaries began to increase again. With players such as rick barry, billy cunningham and Zelmo Beaty joining the new league for bigger contracts, and the new league successfully signing top university talents such as mel daniels and Spencer Haywood, the NBA soon negotiated with ABA about the possible merger of the two leagues. With the merger of 1970 approaching, players filed a "oscar robertson lawsuit", which is an antitrust lawsuit to prevent any merger; Abolish the option clause that permanently binds a player to a team; University draft, limiting players to negotiate with only one club; And the restrictions on signing free agents; And demand compensation for the damage suffered in the past due to the terms of the option. The trade union then received an injunction to prevent any merger, and the negotiations were terminated. However, this fierce debate did not stop the new labor agreement, because NBPA reached a three-year labor agreement with NBA in 10, with the amount of 1970, which increased the minimum wage, playoff seats and daily allowance.
After 197 1 tried to reach a compromise with the players, and after 1972 tried to get the approval of the National Assembly for the merger, NBPA (now led by NBPA President Paul Silas, who replaced Robertson in 1975) reached a temporary agreement with the league, giving the players free agency. Their team gets compensation through 1980 (cash compensation, player or draft choice decided by NBA Commissioner) to limit a team's right to a selected player for one year. If he is not signed after one year, he will be selected again; Termination of option clauses in all contracts (except one-year rookie contracts); And pay about 500 players $4.3 million as settlement money, and $ 1 10,000 as legal fees of the trade union, waiting for a new collective bargaining agreement and dismissing oscar robertson's lawsuit. And a new six-year collective bargaining agreement, which has brought about an increase in pension benefits; Minimum wage (from $20,000 to $30,000); Daily allowance; Medical and dental insurance, term life insurance; Playoff pool; And the player's shares, the player can demand a major victory. Although the league did merge, players can now negotiate with more than one club to ensure that they are in a better position in contract negotiations.
After the new three-year collective bargaining agreement (including increasing the minimum wage and canceling the non-trading agreement in the 1980 player contract) and Silas resigned as the chairman of the trade union to become the coach of the San Diego Clippers, the financial health of the league became a major problem. Many teams led by Cleveland, Denver, Indiana, Kansas, San Diego and Utah suffered heavy losses. Some cities, including Kansas City and San Diego, almost triggered the strike of 1982 players, because they were in arrears with the deferred payment of former players, because the total amount of deferred payment owed by the league to players was estimated to be 80 million to 90 million dollars. Faced with the real threat of losing franchise and players' jobs, after intense negotiations and the threat of players' strike, the trade union led by the new chairman bob lanier agreed to a new four-year collective bargaining agreement in March (1983). This agreement is groundbreaking for professional sports because it includes:
-The salary cap ensures that the player's income accounts for 53% to 57% of the total NBA income (ticket income, local and national TV and radio income, and preseason and playoff income).
-License income of $500,000 per year
-Ensure that the league will maintain 253 player positions even if the number of teams is reduced.
The 1983 agreement will prove to be a major turning point of the alliance. Later that year, an amendment implemented the first NBA-wide drug abuse policy, which proved to be a big step in cleaning up the image of the league. The talented young players such as Magic Johnson, larry bird and Michael Jordan excited the fans.
Under the leadership of david stern, the Commissioner of 1984, the financial situation of the league has improved. However, in 1987, the boss and the players clashed on issues such as salary cap, preemptive right and college draft. A six-year collective bargaining agreement was reached after a short suspension of contract signing, the failure of the anti-monopoly lawsuit attempted by the players' group led by Junior Bridgeman (Milwaukee), the president of N BPA, and the threat of cancellation of certification by the trade union, including:
-Continue to implement the salary cap; Guarantee 53% of players' league income.
-Reduce the college draft to three rounds in 1988 and to two rounds in 1989.
-Cancelled the preemptive right of some old players after completing the second contract with unrestricted free agents.
Five-year veterans who finished their careers before 1965 will be included in the pension plan.
Mutual benefit continued under the upper limit until 199 1, when NBPA found that the league underreported their income by excluding the income from luxury suite rental, playoff ticket sales and arena logo. In a legal dispute, the league thought that the income exceeded the stipulated income of the salary ceiling. Due to the ruling in favor of the union, the players' salary and pension funds increased by 92.7 dollars in total, and the players no longer regarded their agreement with ownership as Stern often claimed.
Creative accounting methods will open the loophole of salary cap, because contract reorganization, early termination clause, one-year contract and huge payment provide teams with the means to avoid salary cap and sign players. After the labor agreement of 1994 was completed, the league and the players managed to reach an agreement not to strike or stop work to protect the 1994-95 season and play under the previous agreement, hoping to reach a new agreement during the season. The negotiation failed. After the 1995 NBA Finals, the owners put pressure on the players, when the trade union (represented by NBPA President Buck Williams and NBPA Executive Director Simon goulding) and the league (represented by NBA Commissioner david stern and NBA Deputy Commissioner & Chief Operating Officer Russ Granik), including luxury goods tax, rookie salary cap and other provisions aimed at tightening the salary cap; A group of players led by Michael Jordan and Patrick Ewing began to try to disqualify the league. Noting the concern that the players' movement may be restricted, the players' representatives chose not to approve the agreement and returned it for further negotiation. In August this year, after the trade union set a deadline to pressure the league to make concessions, the luxury goods tax was abolished, and the exception of senior free agents was restored in the revised agreement. The group seeking to cancel the certification is still dissatisfied and chooses to urge the termination of the league, hoping that this will provide players with a means to sue the league according to the anti-monopoly law, so as to increase the salary cap, college draft and restrictions on free players. Then, in September of 1995, the authentication cancellation election was held, and the player voted against it with 226- 134. A few days later, the player representative voted in favor of approving the agreement with 25-2. The owner quickly passed the agreement by a vote of 24 to 5, and a few days later, the shutdown imposed by the owner was lifted. It was not until June 1996 that the player and the boss finalized the deal and the contract was signed. The final agreement includes:
-All players become unrestricted free agents after the contract ends.
-Guaranteeing 48.04% of all basketball-related income of players, which now includes luxury suites, international TV and stadium signs.
-There are no restrictions on all kinds of players. The league reserves the so-called "larry bird exemption", allowing teams to re-sign their own free agents at any price.
-Starting from 1998, shorten the college draft to one round.
-Rookie salary cap, graded according to the selected position of the player, allowing him to become a free agent after the third season.
The rookie salary cap proved to be a windfall for the players. Draft picks such as kevin garnett (6 years, $121million) and Rasheed Wallace (6 years, $80 million) and Bryant Reeves (6 years, $65 million) all received huge contract extensions, while others such as Antigno McDyess, damon stoudamire, joe smith and jerry stackhouse were traded before becoming free agents.
Another obvious problem is losing control of the players. After Latrell Sprewell was suspended for one year by the league and his contract was terminated by the Golden State Warriors after attacking coach P.J. Carlesimo, an arbitrator ruled that the punishment was too severe, shortened his suspension to the rest of the season, and reinstated his contract on the grounds of past punishments for players' violent behavior.
During the 1997-98 season, NBA owners voted to reopen the collective bargaining agreement, claiming that 13 team suffered losses. The league, currently led by New Patrick Ewing of New York State and Executive Director william hunter, is expected to meet the demands of the owners (including the Commissioner's greater power to punish players, including marijuana in the league's drug test and hard salary cap) and boycott it, on the grounds that the league has reached a four-year $2.4 billion new TV agreement with NBC and Turner Sports to fight poverty, and seek to restore the league's middle class and limit the Commissioner's ability to punish players. The terms in the TV contract guarantee that the boss can get the money even if he stops working. The failure of the rookie salary cap to reduce the big contracts of young players may lead to the summer stoppage and lead to the first loss of the game in the league history.