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Lockout Settlement Terms

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Posted: Wednesday January 06, 1999 10:02 PM

NEW YORK (AP) -- Where the sides stood and where they settled Wednesday to end the NBA lockout:

Percentage of revenues to be devoted to salaries:

Owners' final offer: No fixed number in first three years, 53 percent in year 4, 53.5 in year 5, 54 in year 6 and 54.5 in year 7.

Players' final offer: No fixed number in first three years, 55 percent in year 4, 56 in year 5, 57 in year 6.

Settlement: No fixed number in first three years, 55 percent in year 4, year 5 and year 6; 57 percent in year 7 if the owners exercise an option.

Maximum salary:

Owners: 0-6 years of service: $8.75 million, 7-9 years: $10.5 million, 10-plus years: $12.25 million.

Players: 0-5 years: $9 million, 6-9 years: $11 million, 10-plus years: $15 million.

Settlement: 0-5 years: $9 million, 6-9 years: $11 million, 10-plus years: $14 million.

Rookies:

Owners: Four-year scale with right of first refusal for fifth year.

Players: Four-year scale, or three-year scale with right of first refusal and the right to keep any player in the fifth year by offering maximum salary.

Settlement: Owners' terms.

Salary cap exceptions:

Owners: Middle class exception of $1.5 million in year 1, $1.75 million in year 2, $2 million in year 3 and the average salary in years 4-7. Also maintains the old $1 million exception available every other year.

Players: Middle class exception of $1.75 million in year 1, $2 million in year 2, $2.25 million in year 3 and the average salary in years 4-7. $1 million exception available in year 1, $1.1 million in year 2 and $1.2 million in year 3, median salary exception in years 4-6 starting at about $1.7 million.

Settlement: Union's terms.

Maximum annual raises:

Owners: 12.5 percent for so-called Larry Bird players, 7.5 percent for others.

Players: 13 percent for Bird players, 10 percent for others.

Settlement: 12 percent for Bird players, 10 percent for others.

Cost certainty:

Owners: Escrow tax of 10 percent withheld from players' paychecks if percentage of income devoted to salaries exceeds triggers of 53, 53.5, 54 and 54.5 percent in years 4-7. Backup dollar-for-dollar tax charged to highest-spending teams if escrow account does not make up entire overage.

Players: Same proposal, but with triggers of 55, 56 and 57 percent in years 4-6.

Settlement: Triggers of 55, 55 and 55, with the players deciding who among them must pay the 10 percent escrow tax.

Minimum salaries:

Owners: In year 1 of new agreement: Rookies: $275,000. One year of service: $300,000; two years: $350,000; three years: $400,000; four years: $450,000; five years $500,000; six years: $550,000; seven years: $600,000; eight years: $650,000; nine years: $700,000; 10 years: $1 million.

Players: In year 1 of new agreement: Rookies: $300,000. One year of service: 400,000; 2-4 years: $500,000; five years $575,000, six years: $650,000; seven years: $725,000; eight years: $800,000; nine or more years: $1 million.

Settlement: In year 1: Rookies: 287,500. One year: 350,000; Two years: $425,000; three years $450,000; four years $475,000; five years $537,500; six years $600,000; seven years $662.500; eight years: $725,000; nine years: $850,000; 10 years: $1 million.

Other issues: