Module 3 Pt. 1

Question 1

Basketball Related Income (BRI)

Answer 1

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

Question 2

Cap Hold

Answer 2

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 first round draft picks, and empty roster spots

Question 3

Cap Team

Answer 3

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 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

Question 4

Exception

Answer 4

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

Question 5

July Moratorium

Answer 5

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

Question 6

Projected Benefits

Answer 6

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

Question 7

Projected BRI (aka Projected Revenues)

Answer 7

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

Question 8

Renounce (free agent)

Answer 8

When a team gives up it’s Bird Rights to a free agent, removing the corresponding cap hold and reclaiming the resulting cap room

Question 9

Room Team

Answer 9

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

Question 10

Salary Cap

Answer 10

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 an exception

Question 11

Salary Cap Year

Answer 11

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