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The WNBA Salary Cap and CBA Explained

 
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CamrnCrz1974



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PostPosted: 06/08/20 3:14 pm    ::: The WNBA Salary Cap and CBA Explained Reply Reply with quote

The WNBA Salary Cap and CBA Explained: Rookie Contracts Part One
Part one of a three-part series exploring rookie-scale contracts
Jacob Mox (Her Hoop Stats)
June 8, 2020
https://herhoopstats.substack.com/p/the-wnba-salary-cap-and-cba-explained

Today, we are introducing a new series at Her Hoop Stats: “WNBA Salary Cap and CBA Explained.” As part of our mission to unlock better insight about the women’s game, we’ll be breaking down the rules outlined in the 350-page WNBA Collective Bargaining Agreement covering the 2020 through 2027 seasons in plain language. In a document that size, there is an incredible number of rules and nuances. As a result, each article will focus on a bite-size chunk of the CBA to make the concepts more, well, digestible. We’ll also be collecting all of the explanations on the Her Hoop Stats website in a single reference FAQ document inspired by the great work by Larry Coon on the NBA’s CBA.

Today’s article is the first of a three-part deep dive into rookie contracts. In part one, we will go through the basics of rookie contracts: eligibility, contract terms, and the process of receiving a contract. Part two will review some unique situations that can arise with rookie contracts and how the league deals with those. Part three will look at what happens at the end of contracts — whether they are extended or simply expire.


Randy



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PostPosted: 06/09/20 11:44 am    ::: Reply Reply with quote

9 pages for the first of 3 parts on the Rookie contracts alone. 350 page CBA. The writer is either in a really long quarantine or doing time......But good for them for doing this work.....



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root_thing



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PostPosted: 06/09/20 12:58 pm    ::: Reply Reply with quote

I already understood how most of this works. What I’d really like to know is why the players’ union negotiated fixed increases that cause rookies to be paid more than second year players?



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CamrnCrz1974



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PostPosted: 06/09/20 2:13 pm    ::: Reply Reply with quote

root_thing wrote:
I already understood how most of this works. What I’d really like to know is why the players’ union negotiated fixed increases that cause rookies to be paid more than second year players?


That also happens in the NBA as well.

The salary cap increases from year to year. And the amounts of first round draft picks (in the NBA, guaranteed money) do as well.


root_thing



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PostPosted: 06/09/20 2:35 pm    ::: Reply Reply with quote

CamrnCrz1974 wrote:
root_thing wrote:
I already understood how most of this works. What I’d really like to know is why the players’ union negotiated fixed increases that cause rookies to be paid more than second year players?


That also happens in the NBA as well.

The salary cap increases from year to year. And the amounts of first round draft picks (in the NBA, guaranteed money) do as well.


So, two wrongs make a right? Wink

Actually, isn't the NBA salary cap recalculated every year based on projected revenue and adjusted for the difference from 50% paid as the players' share the previous year? In theory, the cap can even go down. I assume the rookie scale is then reset accordingly. With the WNBA, rates are dictated contractually and they don't change.



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Richyyy



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PostPosted: 06/09/20 3:21 pm    ::: Reply Reply with quote

root_thing wrote:
CamrnCrz1974 wrote:
root_thing wrote:
I already understood how most of this works. What I’d really like to know is why the players’ union negotiated fixed increases that cause rookies to be paid more than second year players?


That also happens in the NBA as well.

The salary cap increases from year to year. And the amounts of first round draft picks (in the NBA, guaranteed money) do as well.


So, two wrongs make a right? Wink

Actually, isn't the NBA salary cap recalculated every year based on projected revenue and adjusted for the difference from 50% paid as the players' share the previous year? In theory, the cap can even go down. I assume the rookie scale is then reset accordingly. With the WNBA, rates are dictated contractually and they don't change.

The NBA's done both over the years. From 1995 when rookie scale contracts were introduced until 2017, all the rookie scale numbers were negotiated and then written in stone into the CBAs - just like the WNBA. Since the 2017 CBA, they specified the first year and then the changes were based on whatever the percentage change in the cap was year-to-year.

But everything in the NBA tends to have an extra level of complexity (or two) compared to the WNBA equivalent. NBA rookie deals have two team-option years at the end, and players can technically sign for anything from 80% to 120% of the base specified figure.

By the way, I worked on this rookie scale stuff with the author (or at least I proof read it and argued over some of the sections with him before publication). Don't know if that makes anyone more or less likely to read it. I agree that it's rather, ahem, comprehensive - but hopefully if anyone has any questions on this area they can dip in and find the answer, rather than necessarily having to read the whole thing. The idea is that over time different pieces will add up to something along the lines of Larry Coon's NBA CBA FAQ, but for the WNBA.



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CamrnCrz1974



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PostPosted: 06/09/20 3:33 pm    ::: Reply Reply with quote

Richyyy wrote:
But everything in the NBA tends to have an extra level of complexity (or two) compared to the WNBA equivalent. NBA rookie deals have two team-option years at the end, and players can technically sign for anything from 80% to 120% of the base specified figure.


Actually, I believe the 80/120 rule is for first round picks, not all rookie contracts. I am presenting information below, Richyyy, but please feel free to correct me if I am wrong regarding the information.

NBA Contracts - First Round Draft Selections

Depending on the pick, there is a set amount assigned to each selection.

    Once choosing a player in the NBA draft, teams can choose to sign that player for as little as 80 percent or as much as 120 percent of that designated amount.

    Rookie contracts are only guaranteed for two years with separate team options in years three and four.

    There is a set amount for the third-year option where the original percentage paid comes into play. The fourth-year option also depends on where the player was selected.

    A No. 1 overall pick would get 26.1% raise from his third year’s salary. The No. 2 overall pick would get a 26.2% raise, all the way up to the 30th and final first-round pick, who would get an 80.5% raise.

    After the fourth year, players become restricted free agents if given a qualifying offer. The raises there could be anywhere between 30% and 50%.
    Rookie contracts in the NBA can’t be extended until after the third year of their deal is complete.



NBA Contracts - Second Round Draft Selections

    NBA second round picks are free to negotiate any contract.

    Teams must use cap space or an exception – e.g., mid-level or minimum-salary – to sign them.To retain a second-round selection’s rights, a team must extend him a required tender.

    A required tender is a one-year contract offer, and because that’s the only requirement, it is almost always for the minimum and fully unguaranteed.


Teams want to sign players to longer contracts with little to no guaranteed money. That way, if the player pans out, he’s cheap and can’t go anywhere. If he doesn’t pan out, he can be waived for minimal cost.
For players, some may want a long-term deal with more money guaranteed. Others may want to hit free agency sooner, so they can bargain with all 30 teams, rather than just one that drafted him.


Richyyy



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PostPosted: 06/09/20 3:52 pm    ::: Reply Reply with quote

Yeah, that's another one of those additional complexities the NBA has - significantly different rules for 1st and 2nd rounders. The only demarcation point where the WNBA really changes the rules in anything like that way is between drafted and undrafted players.



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