Econ Paper - For our research topic we decided to analyze...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
For our research topic we decided to analyze the economic impact of the current NBA lockout. The current issues that are being negotiated are between the NBA Players Association and the Owners, with both trying to settle on an agreement. We will analyze what lead up to the lockout, its current state, and how the new agreement will affect the future of the NBA. We wanted to analyze the reasoning for the lockout, and what lead up to it. With the NBA’s collective bargaining agreement coming to an end, the talks of a new deal has been going on for several months. The old CBA was a six-year agreement that was finalized and signed in 2005. The agreement would set the salary cap at $49.5 million, which a $5 million increase from the season before. Also for the first time, teams would begin the season knowing what the luxury tax threshold would be, which was $61.7 million. The teams that had payrolls over the $61 million would have to pay a dollar for dollar tax on their payroll that exceeded the amount. The money from the teams that exceed the salary cap would then be distributed throughout the league to the teams that didn’t surpass the cap. Other details about the former agreement included: Teams will have a one-time chance to waive a player under contract and be relieved of any luxury tax liability. Waiving Michael Finley could save Dallas at least $51 million; the Mavs would be barred from re-signing him until his contract expires after the 2007- 08 season, and they still would have to pay his full salary. The minimum age for draft eligibility increases by
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 12/18/2011 for the course ECO 202 taught by Professor Normmiller during the Fall '08 term at Miami University.

Page1 / 4

Econ Paper - For our research topic we decided to analyze...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online