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NBPA Exam > CBA Mastery Course Key Terms > Flashcards

CBA Mastery Course Key Terms Flashcards

1
Q

5th Year, 30% Max Criteria

A

A threshold that allows a player to re-sign for up to 30% of the cap in a rookie extension.
A player qualifies by being named MVP (any of last 3 seasons), All - NBA or DPOY (last season, or 2 of last 3 seasons)

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2
Q

Actual Revenues

A

The Basketball Related Income (BRI) actually received by the league in a season, as determined by the league audit at the conclusion of the season

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3
Q

Advances

A

Any regular salary (not bonuses) paid to a player prior to the first league payday on November 15

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4
Q

Aggregation

A

Combining 2 or more outgoing salaries in a trade, for the purpose of bringing back a player with a higher salary than either player in the aggregation can bring back alone.
For example: a $10 million player can be traded for a $12 million player without Aggregation, but his salary must be Aggregated with another salary to bring back a $15 million player

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5
Q

Alternative Pay Arrangements

A

Any non-standard pay accommodations, including include different pay schedules, advances, deferred compensation, loans and signing bonuses

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6
Q

Amendment (Contract)

A

An agreement between a team and player to change the terms of an existing contract

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7
Q

Antitrust Law

A

The collection of laws the regulate businesses, generally to promote competition for the benefit of employees and consumers

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8
Q

Apron

A

The threshold (approx. $6 million above the luxury tax threshold) above which certain exceptions are lost.
Conversely, when a team is below the Apron and uses those exceptions, the Apron becomes a de facto hard cap

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9
Q

Apron Amount

A

The amount by which the Apron exceeds the Luxury Tax threshold. The Apron Amount rises or falls each Salary Cap Year by one half percentage that the Salary Cap rises or falls

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10
Q

Articles

A

The principal divisions of the CBA, which contains 42 Articles. (does not include Exhibits)

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11
Q

Base Year Compensation (BYC)

A

A rule helping to ensure players’ salaries reflect their value as basketball players, and not their trade value, by temporarily lowering their outgoing Salaries in Trade.
While BYC is not a named term in the current CBA, the same rules exists in the current CBA for certain sign and trade transactions

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12
Q

Basketball Related Income (BRI)

A

All income that arises directly or indirectly out of the performance of players in NBA basketball games or in NBA related activities. This includes income from subsidiaries NBA Properties and NBA Media Ventures, as well as income from League Related Entities

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13
Q

Basketball Related Injury

A

A form of compensation protection covering an injury that occurs in the course of a player providing playing services for his team

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14
Q

Bi-Annual Exception

A

An Exception allowing a player to be signed for up to 2 years with 5% raises. This exception cannot be used in consecutive seasons

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15
Q

Bird Clock

A

An informal term for the 3 year tenure ramp up to gain increasing Bird Rights

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16
Q

Bird Rights

A

Designate a player’s ability to re-sign with his prior team using the Veteran Free Agent exception

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17
Q

Buyout

A

A “divorce” agreement between between a player and team, where the player’s contract is amended to reduce the player’s compensation protection to a negotiated amount, in exchange for the team waiving the player

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18
Q

Cap Hold

A

A dollar amount that applies to a team’s Team Salary. A cap hold accounts for a right held by the team, by acting as a placeholder for money they’re expected to spend using that right.
There are cap holds for exceptions, unsigned 1st round draft picks, and empty roster spots

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19
Q

Cap Team

A

A team with a Team Salary near or above the salary cap, that therefore must utilize an Exception to conduct a transaction. A team is considered to be a Cap Team (and therefore must use an exception) when it:
1. Has a Team Salary above the cap
2. Has a Team Salary below the cap, by less than the sum of its Exceptions (so its cap holds push its Team Salary over the cap)
3. Is below the cap, but a transaction leaves them above the cap. The exception is when a team sufficiently lowers its Team Salary as a result of a transaction that it finishes with a Team Salary below the cap

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20
Q

Career Ending Injury or Illness

A

When an appointed physician determines that a player’s injury or illness is career ending, the team can apply for salary cap relief following a mandatory waiting period. If the application is granted, the player’s salary is removed from the team’s Team Salary

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21
Q

Cash in Trade

A

Financial considerations (rather than players or draft assets) that are conveyed from one team to another in a trade. Cash in Trade is subject to the Maximum Annual Cash Limit

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22
Q

Certification

A

All parties involved in a transaction certify, under penalty of perjury, that there are no side agreements of any kind related to that transaction.
In addition, the team’s governor signs an annual certification stating that the team has not violated any of the circumvention rules

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23
Q

Circumvention

A

Doing anything intended to get around the intent of the CBA

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24
Q

Clear Waivers

A

A player “clears waivers” when he is placed on waivers and is not claimed by another team within 48 hours. He then becomes an unrestricted free agent

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25
Q

Collective Bargaining

A

The process of negotiation between employers and a group of employees regarding working terms and conditions

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26
Q

Collective Bargaining Agreement

A

A written contract negotiated through collective bargaining. The NBA’s Collective Bargaining agreement regulates league operations and its relationship with players

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27
Q

Collusion

A

When teams enter into agreements with each other regarding negotiating or not negotiating with any player, submitting or not submitting an offer sheet to a player, offering or not offering a contract to a player, etc

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28
Q

Compensation Protection

A

Guaranteed salary, i.e., salary that is guaranteed to be paid even if the player is waived before the end of the contract

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29
Q

Contingent Protection

A

Compensation protection that requires a condition to be met.
For example, a player’s salary becomes guaranteed if he is on the roster as of July 1, 2021

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30
Q

Current Base Compensation

A

Salary paid to a player by May 1 of the season following the one in which it is earned

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31
Q

Cut Down Date

A

On January 10, all contracts become fully guaranteed for the remainder of that season

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32
Q

Decertification

A

When members of a union remove the union as its exclusive representative. This ends the relationship between the union and its members, so in the NBA it ends the relationship between the players association and the league.
Potential consequences include exposing the league to Antitrust regulations

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33
Q

Deferred Base Compensation

A

Any salary paid after May 1 of the season following the one in which its earned

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34
Q

Designated Rookie

A

A player who has been designated by his team to receive a longer (5 year) rookie extension

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35
Q

Designated Rookie Extension

A

A Rookie Extension in which the player receives 5 new seasons rather than 4

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36
Q

Designated Veteran

A

A player who has met the performance and tenure criteria to receive a more lucrative (up to the 10+ year maximum) contract or extension starting in his 9th or 10th season

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37
Q

Designated Veteran Extension

A

A Veteran Extension in which the player meets criteria (years of service, tenure and performance) and receives a salary starting above 25% and up to 30% of the salary cap

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38
Q

Disabled Player Exception

A

A salary cap exception providing cap room to sign a replacement for an ill/injured player who will be out the remainder of that season.
This exception must be approved by the league

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39
Q

Disqualification

A

When a player is dismissed from the league in conjunction with the Drugs of Abuse Program, Domestic Violence Program, gambling on NBA games, or involved in any way with game fixing

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40
Q

Domestic Violence Program

A

The program, focused on educational programs and awareness training, that deals with domestic violence, child abuse and sexual assault

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41
Q

Early Bird Exception

A

An Exception allowing teams to re-sign their Early Qualifying Veteran Free Agents to lucrative contracts

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42
Q

Early Qualifying Veteran Free Agent (EQVFA)

A

The term used in the CBA for a player with Early Bird rights (2 seasons on his Bird Clock)

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43
Q

Early Entry Player

A

A player who applies for entry in the NBA draft who has met the basic age requirement (at least age 19 with 1 elapsed season since high school graduation), but who has not met the additional requirements.
For domestic players the additional requirements are related to college graduation. For international players, the additional requirements are age 22 or playing professionally in the US but outside the NBA

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44
Q

Early Termination Option (ETO)

A

A contract provision allowing a player to terminate his contract and become a free agent, a year before it was scheduled to end

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45
Q

Escrow System

A

The system in which a portion of player salaries are collected until the end of the season. At the end of the season, when the players’ Revenue Guarantee amount is known, escrow proceeds are returned to players in the amount need to equal their Revenue Guarantee, with the remainder returned to the teams

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46
Q

Estimated Average Salary

A

The projected value for the league’s average salary, calculated using 104.5% of the previous season’s actual average salary

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47
Q

Exception

A

A mechanism allowing a team to conduct transactions that result in the team being over the salary cap

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48
Q

Excluded International Player Payment Amount

A

The maximum amount an NBA team can pay to an international team as an International Buyout without counting toward Team Salary

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49
Q

Exhibit 1

A

The attachment to a Uniform Player Contract detailing the player’s base salary, deferred salary, payment schedule, signing bonus, incentive compensation, and other arrangements such as options, ETO’s and no trade clauses

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50
Q

Exhibit 7

A

A provision of the Uniform Player Contract providing language that is more favorable to the player when the team suspends the player because he’s not in game shape

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51
Q

Exhibit 8

A

The UPC Exhibit that is used when a Sign and Trade is executed. Exhibit 8 states that the contract is invalid if the trade to the specific team (named in the Exhibit) is not completed within 48 hours

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52
Q

Exhibit 9

A

A contract provision that limits the team’s liability to $6,000 if the player is injured while playing for the team. Exhibit 9 is often used for training camp invitees

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53
Q

Exhibits

A

Attachments to the CBA, which follow the Articles. In the NBA’s CBA, the Exhibits include the Uniform Player Contract
The portion of the Uniform Player Contract (following boilerplate paragraphs) that are individualized to the player, including compensation, guarantees, and other individual limitations

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54
Q

Extension

A

A contract amendment in which additional seasons are added

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55
Q

Extension and Trade

A

A contract extension done in conjunction with an immediate trade

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56
Q

5th Year, 30% Max Criteria

A

The criteria a player must meet to be eligible for a higher salary in a Rookie Extension
- Named MVP (any of 3 preceding seasons)
- Any All - NBA team (preceding season, or both seasons that came before the preceding season)
- Defensive Player of the Year (preceding season, or both seasons that came before the preceding season)

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57
Q

First Allowable Draft

A

A way of specifying the year of a draft pick trade, when the exact year of the pick isn’t known at the time of the trade due to pick protections from a previous trade.
The First Allowable Draft would be 2 drafts after the first pick actually conveys

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58
Q

First Refusal Exercise Notice

A

When a Restricted Free Agent signs an offer sheet with a new team, a First Refusal Exercise notice is used by the player’s prior team to match the offer and keep the player

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59
Q

Fitness to Play Panels

A

Panels consisting of experts in specific medical specialties, which review a referred player’s fitness to play
i.e., whether the player continuing to play constitutes a medically unacceptable risk

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60
Q

Free Agent Amount

A

Also known as: Free Agent Cap Hold
A cap hold for a team’s own free agent, accounting for the team’s right to exceed the cap to re-sign its free agent using Bird rights. The amount of the cap hold is determined using a formula. It is an approximation of the salary a typical free agent in that situation will receive in a new contract, based on his previous salary and other factors

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61
Q

Fundamental Rule of the Salary Cap

A

A team’s Team Salary must remain below the salary cap, unless they are using an Exception

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62
Q

G-League Player

A

A player signed by the G-League, as opposed to a Two Way player or NBA player

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63
Q

General Prohibition Against Circumvention

A

A blanket provision covering instances of circumvention that aren’t literally specified in the CBA. The General Prohibition gives the league the right to disqualify transactions it feels are skirting the intent of the CBA

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64
Q

Gilbert Arenas Provision

A

A rule that limits Offer Sheets to restricted free agents with 1 or 2 years in the league. The first year of an Arenas offer sheet is limited to the Non-Taxpayer Mid-Level exception amount, but the player can receive a substantial raise starting in year 3

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65
Q

Guarantee

A

Another name for Compensation Protection. Salary the player is guaranteed to receive even if he is waived and his contract is terminated

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66
Q

Hard Cap

A

A condition created when a team uses its Non-Taxpayer Mid-Level or Bi-Annual exception, or receives a player in a Sign and Trade transaction. The Team Salary of team is this situation cannot be above the Apron for any reason, for the remainder of that salary cap year.
A salary cap system in which the cap cannot be exceeded under any circumstances - in other words, one without Exceptions. The NBA Salary Cap functions as a hard cap only when teams utilize exceptions that are reserved for lower spending teams

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67
Q

Hardships

A

A status that may be granted by the league when a team has 4 players who are simultaneously sick or injured. A Hardship designation enables a team to sign an additional player beyond the normal roster limits, however it does not provide an exception or room under the salary cap to do so

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68
Q

Incentive Compensation

A

Compensation that is contingent on the player or team meeting performance thresholds.
Incentives include performance bonuses, academic/physical achievement bonuses, and extra promotional bonuses

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69
Q

Injury or Illness

A

A form of compensation protection covering any injury or illness that affects the player’s ability to provide playing services, whether or not the injury or illness was basketball related

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70
Q

International Buyout

A

A payment made to an international team to release a player’s rights, allowing the player to sign with an NBA team

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71
Q

International Player

A

A release from a player’s national basketball federation certifying that the player is free from contractual obligations that would prohibit him from signing in the NBA.
A Letter of Clearance is required for a player who is currently playing or last played for an international team

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72
Q

July Moratorium

A

A span of time at the start of each Salary Cap Year during which most signings and trades are not allowed. The July Moratorium currently lasts from the start of the Salary Cap Year on July 1 until noon on July 6

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73
Q

Labor Law

A

The collection of laws that deal with employment, including the relationship between employers, employees and unions

74
Q

Lack of Skill

A

A form of compensation protection covering the team waiving the player because his playing services are not at a sufficient level to justify remaining on the team’s roster

75
Q

Larry Bird Exception

A

An Exception allowing teams to re-sign their Qualifying Veteran Free Agents to lucrative contracts

76
Q

Later Signed First Round Pick

A

A 1st round draft pick who was not signed within 3 seasons after being drafted

77
Q

League Related Entity

A

Any business at least 50% owned by the NBA, any of its subsidiaries, or any of its teams.
An amount of the League Related Entity’s income is included in BRI, proportional to the percentage of league/team ownership

78
Q

Letter of Clearance

A

A document from a FIBA member’s national organization stating that a player is not under contractual obligation in that country

79
Q

Loans

A

Money advanced from the team to the player that must be repaid

80
Q

Lockout

A

A denial of employment initiated by management during a labor dispute (as opposed to a strike, which is initiated by employees)

81
Q

Love of the Game

A

A clause commonly negotiated into individual contracts, waiving pickup basketball as a prohibited activity

82
Q

Luxury Tax

A

A spending disincentive and a form of revenue sharing between teams whereby teams above the Luxury Tax Threshold pay tax on the basis of their Team Salary amounts, and teams with Team Salaries below the Luxury Tax Threshold are recipients of a portion of the tax proceeds

83
Q

Maximum Annual Cash Limit

A

A team’s limit to the amount of Cash in Trade that can be conveyed across all trades in a salary cap year. Each team has separate limits for the amounts it can receive and convey to other teams

84
Q

Maximum Qualifying Offer

A

An optional Qualifying Offer submitted in addition to a standard Qualifying Offer, which provides the maximum years, salaries and raises, that is fully guaranteed, with no options or bonuses.

A Restricted Free Agent is allowed to accept either his regular Qualifying Offer or his Maximum Qualifying Offer

85
Q

Maximum Salary

A

Refers to the highest salary a player can receive in the first year of a contract or extension. Personal maximums (105% of prior salary) can trump league wide maximums (25%, 30% or 35% of cap, based on tenure)

86
Q

Mid Level Exception

A

A salary cap exception allowing teams to sign any free agent or draft pick to a mid level contract.
There are 3 versions of this exception - Non Taxpayer, Taxpayer, and Room - that allow different starting salaries and contract lengths

87
Q

Minimum Player Salary Exception

A

A salary cap exception allowing teams to sign players to minimum salary contracts for up to 2 seasons

88
Q

Minimum Salary

A

The lowest full salary a player can receive, based on years of service. Minimum salary players sign contracts with Exhibit 1A in place of Exhibit 1

89
Q

Minimum Salary Scale

A

Pre-set salary amounts for all seasons of a minimum salary contract, based on the year the player signs and the player’s tenure

90
Q

Minimum Team Salary

A

The lowest amount a team can spend on player payroll in a given season, which is 90% of the Salary Cap. The Minimum Team Salary is based on actual payroll, and not Team Salary amounts

91
Q

Negotiated No-Trade Clause

A

An “Other Consideration” in Exhibit 1 of the UPC, giving the player the right to consent to any trade

92
Q

Non-Bird Exception

A

An Exception allowing teams to re-sign their Non Qualifying Veteran Free Agents to lucrative contracts

93
Q

Non Qualifying Veteran Free Agent

A

The term used in the CBA for a player with non-Bird rights (1 season on his Bird Clock)

94
Q

Non Simultaneous Trade

A

A trade that is not Simultaneous. If a player is traded without Aggregation, and the trade does not return more than the player’s salary plus $100,000, then the team has 1 year to acquire additional salaries in subsequent trades, bringing the total up to the traded player’s salary plus $100,000

95
Q

Non Statutory Labor Exemption

A

The portion of federal antitrust laws that exempts collective bargaining agreements from antitrust liability, instead placing them in the arena of labor law

96
Q

Non Taxpayer Mid Level Exception

A

A version of the Mid Level Exception allowing teams to sign players for up to 4 years, starting at approximately the average player salary ($9.258 million in 2019-20)
This exception is available only to teams who are (and remain) below the Apron

97
Q

Offer Sheet

A

A contract offer made to a restricted free agent by a team (other than the player’s prior team) that wishes to sign the player. An Offer Sheet is then given to the player’s prior team, which then has 2 days to exercise its Right of First Refusal

98
Q

One Plus One Contract

A

A contract configuration commonly signed by player who wish to maximize their flexibility: 1 guaranteed year, plus 1 player option year. The second season functions primarily as an insurance policy

99
Q

Option

A

A contract provision allowing a contract to be extended for 1 additional season. Can be a Player Option (player decides) or Team Option (team decides)

100
Q

Overage

A

The amount by which players’ aggregate salaries for a season exceed their guaranteed share of revenues. In theory, the players’ Overage is returned to teams through the Escrow System

101
Q

Partial Waiver Claim

A

A waiver claim made under the Partial Waivers provision, for less than the full remaining value of the waived player’s contract

102
Q

Partial Waivers

A

A form of waivers available only in conjunction with Fitness to Play Panels, in which a waiver claim may be for less than the full remaining value of the waived player’s contract

103
Q

Pay Schedule

A

The dates on which the player is paid. The standard pay schedule is 24 semi monthly paydays beginning November 15

104
Q

Performance Bonuses

A

Incentive Compensation that compensates the player when a specified individual or team threshold has been met

105
Q

Pick Deferment

A

A trade consideration that gives a team the option to defer the conveyance of a specific draft pick to the following draft. This differs from a Protected Pick in that the team (and not the eventual position of the pick) determines whether to defer the conveyance

106
Q

Pick Protection

A

An optional provision in a trade involving a future draft pick, in which the pick is not conveyed if it falls within a defined range

107
Q

Player Option

A

A contract provision providing the player with the ability to extend his contract for 1 additional season

108
Q

Players’ Revenue Guarantee

A

The collective amount the players are guaranteed to receive in salaries and benefits in a given season

109
Q

Poison Pill Provision

A

A rule altering the Salary in Trade (for the receiving team only) for players who have signed a rookie extension, during the season before the extension takes effect. If such a player is traded, his incoming Salary in Trade is the average of his salaries in the current season and the entire extension

110
Q

Principal Terms

A

Terms in an offer sheet which the prior team must match when exercising its Right of First Refusal. Principal Terms include years, options, compensation, signing bonuses, deferred compensation, certain incentive compensation (incentives that are “likely” for both teams, or based on generally recognized league honors), and allowable amendments including guarantees and trade bonuses

111
Q

Prior Injury Exclusion

A

Including Exhibit 3 in a contract, which limits or eliminates a player’s compensation protection if he is injured as a direct result of playing or practicing with his team.
If it is a re-injury of a specific injury or aggravation of a specific condition described in the Exhibit

112
Q

Pro-rate

A

When something changes value as a factor of time. NBA exceptions, pro-rate, or lose value over time, when they are unused

113
Q

Prohibited Activities

A

The list of activities (that are considered dangerous) in which the player cannot participate without the team’s prior written consent

114
Q

Projected Benefits

A

The league’s current best estimate of the players’ employment benefits that will be paid in the upcoming season

115
Q

Projected BRI (aka Projected Revenues)

A

The league’s current best estimate for what the revenues in the upcoming season are going to be

116
Q

Protected Pick

A

A trade consideration that defers or eliminates the conveyance of a specific draft pick based on its eventual position in the draft
For example: a pick that is protected 1-10 is only conveyed if the team ends up with the 11th through 30th pick.
This defers from Pick Deferment in that the position of the pick (and not a decision by the team) determines whether the pick is conveyed

117
Q

Qualifying Offer

A

A pro forma contract offer made to a team’s free agent in order to secure its right of first refusal, making the player a restricted free agent

118
Q

Qualifying Veteran Free Agent

A

The term used in the CBA for a player with full Bird rights (at least 3 seasons on his Bird Clock)

119
Q

Random Testing

A

A category of substance abuse testing in which every player is subject to testing up to 4 times during a season and up to twice during the offseason, at random times

120
Q

Reacquisition Rule

A

A team cannot acquire a player it traded away for the remainder of that salary cap year, unless that player was first waived by another team

121
Q

Reasonable Cause Testing

A

A category of Substance Abuse testing in which testing can be ordered when the league or players association provides an appointed expert with information about a player’s use, possession or distribution of prohibited substances, or under other specified circumstances

122
Q

Reinstatement

A

When a player who previously was Disqualified applies for and is granted the opportunity to return to the league

123
Q

Renegotiation

A

When the team and player mutually agree to amend an existing contract to change the salaries

124
Q

Renounce

A

When a team gives up a right, removing the corresponding cap hold and reclaiming the resulting cap room. Free agents, exceptions and first round draft picks can be renounced

125
Q

Repeater Tax

A

A higher tax rate ($1.00 over the standard rate in each band) paid by taxpaying teams that also were taxpayers in at least 3 of the 4 preceding seasons

126
Q

Required Tender

A

An initial contract offer made to a draft pick, which is required for the team to retain its draft rights to the player.
A required tender is a Rookie Scale Contract for a 1st round pick, and a 1 year contract at the minimum salary

127
Q

Restricted Free Agent

A

A player who is subject to restricted free agency. After signing an offer sheet with a new team, a restricted free agent’s prior team may match the Offer Sheet and retain the player

128
Q

Revenue Forecast

A

BRI projections made when the CBA was negotiated

129
Q

Revenue Sharing

A

A system whereby teams with higher revenue (typically in bigger markets) share a portion of their revenue with lower revenue teams (typically in smaller markets)

130
Q

Right of First Refusal

A

The right held by the prior team of a Restricted Free Agent to match an offer sheet and prevent the player from changing teams as a free agent. A team secures its Right of First Refusal by submitting a Qualifying Offer

131
Q

Rookie Exception

A

A salary cap exception that allows a team to sign its draft pick to a Rookie Scale Contract while over the salary cap

132
Q

Rookie Extension

A

An amendment to a Rookie Scale Contract, executed by October 31 of the player’s 4th season, adding additional seasons. The salaries in a rookie extension are fully negotiable, as the player is no longer bound to the Rookie Scale

133
Q

Rookie Free Agent

A

An undrafted rookie, who is free to sign with any team

134
Q

Rookie Scale

A

Pre-set scale salary amounts for rookie scale contracts, based on the year the player is signed and his draft position, covering the 4 seasons of the player’s rookie scale contract and his restricted free agent qualifying offer

135
Q

Rookie Scale Contract

A

The initial contract signed by first round draft picks. Rookie scale contracts are 4 seasons, with team options for season 3 & 4

136
Q

Room Mid Level Exception

A

A version of the Mid Level Exception allowing teams to sign players for up to 2 years, with a lower starting salary than provided by the Taxpayer or Non Taxpayer Mid Level Exceptions ($4.767 million in 2019-20).
This exception is available to Room teams, or teams that had been Room teams earlier in the scale Salary Cap year

137
Q

Room Team

A

A team operating with cap space. If a team’s Team Salary is low enough that it remains below the salary cap following a transaction, it is operating as a Cap Team, and does not need to use an Exception for the transaction

138
Q

Salary Cap

A

A dollar amount representing a spending limit for teams.
In a Soft Cap system such as the NBA’s, teams cannot conduct transactions that leave them over the salary cap unless they are using and exception

139
Q

Salary Cap Year

A

The full calendar year associated with an NBA season, running from July 1 through June 30

140
Q

Salary in Trade

A

The salary that is used to compute whether a trade is legal per the Traded Player Exception.
The Salary in Trade is usually - but not always - the player’s actual salary (Base Year Compensation & Poison Pill Provision)

141
Q

Set Off

A

A provision that allows a team to reduce the remaining compensation it owes to a waived player if that player signs elsewhere

142
Q

Seven Year Rule

A

Future draft picks can only be traded 7 drafts in advance

143
Q

Sign and Trade

A

A transaction in which a team re-signs its free agent for the purpose of a trade to a specific team. The trade to the specific team must be completed within 48 hours of the signing.
A sign and trade is conducted using Exhibit 8 of the UPC

144
Q

Signing Bonus

A

Money paid to the player when a contract or extension is executed

145
Q

Simultaneous Trade

A

A trade that completes all at once (as opposed to a Non-Simultaneous Trade). Any trade in which salaries are Aggregated, or in which any traded player returns more than his outgoing salary plus $100,000 must be a Simultaneous Trade

146
Q

Soft Cap

A

A salary cap that permits teams to exceed the cap under certain, defined conditions. The NBA’s salary cap system utilizes a Soft Cap

147
Q

Starter Crieteria

A

A performance threshold used to determine whether a player receives a higher or lower Qualifying Offer than what is indicated in the rookie scale for his draft position.
A lower draft pick who meets the Starter Criteria may receive a higher Qualifying Offer, and a higher draft pick who does not meet the Starter Criteria may receiver a lower Qualifying Offer.

148
Q

Stretch Provision

A

The rule dictating the payment schedule for remaining guaranteed salary when a player is waived. In addition to the automatic stretch of the player’s remaining salary payments, the team may elect to stretch (or not stretch) the resulting Team Salary amounts

149
Q

Substance Abuse Program

A

The program intended to promote player health and safety and prevent gaining an unfair advantage through chemical means, by providing Random Testing and Reasonable Cause Testing for drugs of abuse, along with penalties and treatment programs for players who test positive.

150
Q

Summer Contract

A

A non-guaranteed contract with no salary earned or paid prior to the start of the regular season. A Summer Contract for a veteran who last played for that team must be for one year at the minimum salary. Summer Contracts do not count against team salary unless and until the player makes the team’s regular season roster

151
Q

Supermax

A

Another name for a Designated Veteran contract or extension that provides the maximum years, salaries, and raises

152
Q

Swap Rights

A

Trading another team the right to swap its future draft pick with your pick in the same draft

153
Q

Tampering

A

Any intent to entice a player who is under contract (or whose rights are held by) another team relating to the player’s playing services, or any interference with the employer - employee relationship of another team and one of its players

154
Q

Taxpayer Mid Level Exception

A

A version of the Mid Level Exception allowing teams to sign players for up to 3 years, with a lower starting salary than provided by the Non-Taxpayer Mid Level Exception ($5.718 million in 2019-20).
This exception is available to teams who are above the Apron

155
Q

Team Option

A

A contract provision providing the team with the ability to extend a player’s contract for one additional season

156
Q

Team Salary

A

The team’s position relative to the salary cap. Team Salary includes base salaries for all active contracts, “likely” bonuses, portions of signing & trade bonuses, guaranteed salary for waived players, and various cap holds

157
Q

Ted Stepien Rule

A

Teams cannot make draft pick trades that leave them without a 1st round pick in any consecutive future drafts.
This rule applies only to future drafts, so the picks in any previous drafts are not considered for this rule

158
Q

10 Day Contract

A

A temporary contract lasting 10 days, or 3 games, whichever is longer

159
Q

Touch Rule

A

One of the rules used to determine if a proposed trade is legal. This rule is not in the CBA , and it applies to all trades - not just trades using the Traded Player exception.
In a trade involving 3 or more teams, each participating team must convey (or receive) assets with at least 2 other teams in the trade

160
Q

Trade Bonus

A

A contract provision that provides the player with a bonus payment in the event of a trade. Also known as a “trade kicker”

161
Q

Trade Call

A

A conference call between the league and all teams involved in a trade, to review all details of the proposed trade, along with each team’s responsibilities following the trade

162
Q

Trade Deadline

A

The second Thursday before the All-Star game (10 days before All Star Sunday).
After 3pm EST on that date, teams are not permitted to make trades until their season ends

163
Q

Trade Exception

A

The informal term used to describe a team’s ability to absorb additional incoming players for 1 year following a Non-Simultaneous Trade.
Not to be confused with Traded Player Exception

164
Q

Trade Payment (Trade Kicker)

A

A payment made to a player if he is traded (with the exception of the initial trade in a Sign and Trade transaction).
A trade payment is specified using Exhibit 4 of the UPC, and is payable only once

165
Q

Traded Player Exception

A

A salary cap exception, described in Article VII, Section 6, enabling teams to make trades that leave the team over the salary cap, but imposing limitations on the amount of incoming salary that can be received.
Not to be confused with Trade Exception

166
Q

Two Way Contract

A

A hybrid between an NBA player and a G-League player. A two-way player may spend up to 45 days with his NBA club, and his salary depends on which league he is with on a given day

167
Q

Two Way Conversion

A

The exercise of the team’s right (as defined in Exhibit 10 of the UPC) to convert a standard contract to a Two Way contract

168
Q

Two Way Player

A

A player signed by an NBA team (not the G-League) to a contract containing Exhibit 10.
A G-League player splits time between the NBA team and its G-League affiliate

169
Q

Un-Renounce

A

Reversing an renouncement and reclaiming the player’s Bird rights. This is allowed only when the renouncement created cap room to provide an offer sheet to another team’s restricted free agent, that player signs the offer sheet, and the player’s former team exercises its right of first refusal and retains the player

170
Q

Undisclosed Agreement

A

Any understanding such as promises of future contracts or contract terms, side compensation, etc. that are not contained in a Uniform Player Contract (UPC)

171
Q

Uniform Player Contract (UPC)

A

The standard contract retaining the player’s services as a professional basketball player

172
Q

Unlikely Bonus Loophole

A

Loophole whereby teams sign multiple players with substantial unlikely bonuses that in the aggregate, become likely in reality while remaining unlikely per the letter of the rule. This loophole is closed by the rule adding in unlikely bonuses for all players signed that season when determining whether the team has enough cap room to sign an additional player

173
Q

Unrestricted Free Agent

A

A free agent who is able to sign with any team, leaving his prior team with no recourse

174
Q

Verbal Agreement

A

Any agreement between a team and player on the terms of a new contract, before the team and player sign a UPC. Verbal Agreements (when discovered by the league) count as Team Salary, the same as signed contracts

175
Q

Veteran Extension

A

An amendment to an existing contract (other than a Rookie Scale Contract), executed before the contract ends, adding additional seasons to the contract

176
Q

Veteran Free Agent Exception (“Bird Exception”)

A

An Exception that lets a team exceed the cap to re-sign its own free agents (also known as the Bird Exception). This exception ramps up over 3 years - the longer a player is with his team, the more the team can spend on the player with this exception

177
Q

Waiver Claim

A

When a team acquires the contract of a waived player within 48 hours.
If multiple teams claim the same player, the claim is awarded on the basis of the team’s records

178
Q

Waiver Period

A

The time in which a player is “on waivers”, during which other teams can make a Waiver Claim. The Waiver Period is 48 hours, including weekends and holidays

179
Q

Waiver Request

A

Commonly referred to as “waiving” a player. When a team intends to terminate a player’s contract, it makes a waiver request to the remaining teams. Other teams are given 48 hours to respond by filing a Waiver Claim. If there is no Waiver Claim within 48 hours, the player’s contract is terminated and the player becomes a free agent

180
Q

Waivers

A

A temporary status for players a team intends to release. Players stay on waivers for 48 hours or until their contracts are claimed by another team, whichever comes first. A player who is unclaimed for 48 hours “clears waivers” and becomes an unrestricted free agent

181
Q

Zydrunas Ilgauskas Rule

A

If a player is traded and waived by the receiving team, he cannot re-sign with or be re-acquired by the trading team for 1 year, or until the waived contract would have ended, whichever is sooner

NBPA Exam (9 decks)

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