NBA Owners Reportedly Drop Demand For End Of Guaranteed Contracts

NBA owners, league officials, players and union officials continue to meet to negotiate a new labor deal before the current agreement expires June 30. A nearly five-hour session in New York on Friday resulted in at least one bit of progress, according to reports by New York Times' Howard Beck: the NBA has dropped its demand for the end of guaranteed contracts in the new deal.

The guaranteed contract has long scarred the records of NBA GMs; currently, contracts can be signed for up to six years, and most are fully guaranteed until, in some cases, the final year. Unlike the NFL's salary system, NBA teams have no way of excising payroll without a mutually agreed upon buyout (rare) or trade. Recoveries from bad contracts tend to be slower in the NBA; one bad contract (or injury) can handcuff a team for years.

The NBA had sought to eliminate the very idea of the guaranteed contract in the league, but reportedly gave up that chip. But the league is still working toward ways to diminish the risk involved with long-term contracts: by shortening the maximum length of contracts, by diminishing the share of revenue from its current 57-43 split that favors players, by instituting a hard cap. Those are still major obstacles to a deal. Ending the guaranteed contract was the most outrageous concept in the NBA's proposal; to see it gone 13 days before the deadline is good news, but not quite enough yet.

Latest News

X
Log In Sign Up

forgot?
Log In Sign Up

Please choose a new SB Nation username and password

As part of the new SB Nation launch, prior users will need to choose a permanent username, along with a new password.

Your username will be used to login to SB Nation going forward.

I already have a Vox Media account!

Verify Vox Media account

Please login to your Vox Media account. This account will be linked to your previously existing Eater account.

Please choose a new SB Nation username and password

As part of the new SB Nation launch, prior MT authors will need to choose a new username and password.

Your username will be used to login to SB Nation going forward.

Forgot password?

We'll email you a reset link.

If you signed up using a 3rd party account like Facebook or Twitter, please login with it instead.

Forgot password?

Try another email?

Almost done,

By becoming a registered user, you are also agreeing to our Terms and confirming that you have read our Privacy Policy.

Join SBNation.com

You must be a member of SBNation.com to participate.

We have our own Community Guidelines at SBNation.com. You should read them.

Join SBNation.com

You must be a member of SBNation.com to participate.

We have our own Community Guidelines at SBNation.com. You should read them.

Spinner.vc97ec6e

Authenticating

Great!

Choose an available username to complete sign up.

In order to provide our users with a better overall experience, we ask for more information from Facebook when using it to login so that we can learn more about our audience and provide you with the best possible experience. We do not store specific user data and the sharing of it is not required to login with Facebook.