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On this episode of The HoopsHype Podcast, Alex Kennedy talks with CBA and salary-cap expert Eric Pincus, who writes for Bleacher Report and Basketball Insiders. They discuss how the NBA’s stoppage may impact the salary cap, whether cap smoothing will be required, whether changes may be made to the CBA, how this affects current contracts and more. Time-stamps are below.
1:30: This is uncharted territory, but the NBA does have language in the Collective Bargaining Agreement for emergencies like this. Eric talks about which sections of the CBA are most relevant at this time.
3:40: Eric clarifies whether NBA players will be paid if games are canceled – for both regular season and playoff games.
4:40: If the NBA can’t resume play or they must do so without fans in attendance, Eric explains what kind of impact that could have on next year’s salary cap. Also, Eric discusses why cap smoothing may be necessary.
9:50: Bobby Marks has estimated that this stoppage could cost the league $500 million in Basketball Related Income (BRI). Eric believes that number may be conservative and explains what would happen if this stoppage cost the league significantly more money.
12:10: The NBA and NBPA can rewrite portions of the CBA if necessary. Eric shares an example of this happening recently, when Nene’s incentive-laden contract with the Houston Rockets was deemed cap circumvention.
17:20: While there is language in the CBA giving owners the ability to dock players’ pay and even terminate the agreement, it seems like that’s a last resort. Both sides want to work together rather than make this messy (especially with how well the NBA has done in recent years).
21:55: If the regular season doesn’t resume, what happens with performance-based incentives in players’ contracts?
24:50: Eric shares some of his biggest questions that remain unanswered. For example, is there any way the league can resume games with as few people as possible or is that unrealistic?
32:00: This isn’t just about this season and the 2020-21 campaign. It’s very possible that the NBA will feel the effects of this for the next 5-6 years, according to Eric.
37:20: Alex and Eric discuss how this may impact the draft and whether we may see a draft occur without any pre-draft workouts.