Fwd: Cap Dilemna

To: <LakersList@yahoogroups.com>, "Brett Pauly" <bpauly@cisco.com>
Subject: [LakersList] big trouble
From: "Gregory J Zarow" <gzarow@ucsd.edu>
Date: Wed, 18 Jul 2001 01:27:28 -0700
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wow!

it seems that the cap is 6million less than expected, 36mil instead of 42mil.

this is a HUGE gap.

and quite unexpected.

i smell trouble. big trouble. cap trouble. players union trouble. pissed off agent trouble. plus, either the luxury tax threshold changes or the gap between the cap and the luxthreshold just got bigger, so maybe every team in the league is screwed..

maybe it's all posturing and they'll be an agreement soon.

but this could get ugly if it drags on or if the cap is at 36mil with everyone structuring team salaries around a 42mil cap..

http://espn.go.com/nba/news/2001/0718/1227467.html

Wednesday, July 18, 2001
League, players' union can't agree on cap

Associated Press

                 NEW YORK -- In a post-midnight development that will delay several trades and
                 free agent signings, the NBA and the players union broke off talks early Wednesday
                 over the details of the new salary cap.

Free agents were expected to be able to sign new contracts as of 12:01 a.m. EDT,
but lawyers for the league and the union were unable to finalize the agreement.

                 Under the terms of a formula contained in the league's collective bargaining
                 agreement, the salary cap will increase on an interim basis from $35.5 million to
                 $35.956 million.

Teams were expecting the new cap number to be about $42.5 million.

                 "This lower than expected salary cap creates an unfortunate situation for both teams
                 and players," NBA executive vice president of legal and business affairs Joel Litvin
                 said. "Although we worked late through the night to reach an agreement, the players'
                 association made an 11th-hour demand we cannot accept."

The league did not disclose the details of the "11th-hour demand."

Union attorneys could not immediately be reached for comment.

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