With training camps for the 2020-21 NBA season set to open on Tuesday, Dec. 1, the NBA has significant business to take care of over the next three weeks. Because of the 2019-20 campaign’s late finish due to the COVID-19 hiatus, most typical offseason activities have yet to occur.
In the coming days and weeks, that’s about to change in a big way.
As first reported by ESPN’s Adrian Wojnarowski, the NBA and National Basketball Players Association (NBPA) have reached agreement on an amended collective bargaining deal. Besides setting key offseason dates, the agreement resolves financial questions related to the pandemic and the league’s expected revenue shortfall (due to fewer in-arena fans).
ESPN story with @TimBontemps on NBA, NBPA agreement on amended CBA and free agency starting on November 20 — two days after draft. https://t.co/880gfon9Ev
— Adrian Wojnarowski (@wojespn) November 10, 2020
For team-building purposes, here are the two biggest figures:
Salary cap: $109.1 million
Luxury tax: $132,6 million
The Rockets are at approximately $125 million in total payroll just from their top six rotation players (James Harden, Russell Westbrook, Eric Gordon, Robert Covington, P.J. Tucker, and Danuel House Jr.), so they are certainly going to operate as an above-the-cap team in free agency.
While owner Tilman Fertitta has yet to pay the luxury tax in his Houston tenure (starting in October 2017), it will be hard to avoid it in the 2020-21 season. Fortunately for the Rockets, he appears willing to pay it this time, and the revised pact also includes a provision to proportionally reduce tax bills, in the event of lower revenues due to the pandemic.
As such, the Rockets appear willing to spend their taxpayer Mid-Level Exception (MLE) this offseason, which allows them to offer free agents a starting salary of ~$5.7 million on an annual basis.
Besides the salary cap & luxury tax remaining the same this season as they were in 2019-20, there will be a reduction in the luxury tax bill for teams at the end of the season based off the percentage BRI decreased from initial projections during the 2020-21 season, sources said.
— Tim Bontemps (@TimBontemps) November 10, 2020
As for the timing, here are key dates to watch for:
Nov. 15 or Nov. 16: The NBA’s moratorium on trade activity will be lifted.
Nov. 18: The 2020 NBA Draft will be held. (Houston doesn’t currently have a selection in either of the two rounds, but they could still acquire one.)
Nov. 20: Free agents can officially begin negotiating with NBA teams at 5:00 p.m. Central and reach verbal agreements.
Nov. 22: Free agents can sign with NBA teams at 11:01 a.m. Central.
Dec. 1: Training camps open for the 2020-21 season.
Dec. 22: The 2020-21 regular season begins, with each team playing a slightly shortened slate of 72 games (as opposed to the usual 82). As of early November, team schedules had yet to be released.
The goal is for the league to move back closer to its traditional October to June time window by the 2021-22 season.
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