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September 2, 2010 12:55 pm | 5 Comments
A Franchise Tag in the NBAEvaluating the possibility of the NBA incorporating the NFL’s franchise tag.
by Kyle Stack / @KyleStack
During a time in which the NBA is facing uncertainty in how its economic structure will proceed, it might pay offto look at other sports leagues for inspiration. Or it might not. It depends through which prism one is looking:whether the League benefits from the players holding the power they currently enjoy or the owners retaining it.
One inclusion in the NBA’s new Collective Bargaining Agreement — which can become official as soon as July1, 2011 after the current CBA expires June 30 — that can help sway power to one side or another is what’sknown as a franchise tag. It’s a team option signed into the NFL’s current CBA that permits each team tochoose one free agent per offseason whom it would like to “franchise.” Here’s how it works:
– Every offseason before free agency, each team can assign the franchise tag to one player from its crop ofrestricted and unrestricted free agents. The tag formsthe basis for a one-year contract, with the player ableto become an unrestricted free agent once theensuing contract has been completed. (A team can’t“franchise” the same player for more than twoconsecutive seasons.)
– If the team decides to apply the tag to a player, ithas to decide if it’ll make it of the exclusive ornon-exclusive variety. Exclusive means the team hasto pay the greatest of the three following scenarios:1) a minimum offer of the average of the top-fivesalaries at the player’s position for the current yearas of April 15; 2) 120 percent of the player’s salaryfrom the previous year; or 3) the average of the topfive salaries at the player’s position as of the end ofthe previous season. And that player can’t negotiatea contract with any other team.
A non-exclusive tag eliminates the first pay option ofthose three and holds in play 120 percent of theprevious year’s salary or the average of the top fivesalaries at the player’s position from the priorseason, whichever is greater. Plus, that player hasthe freedom to negotiate a deal with any other team.
– If another team agrees to a contract with that“franchised” player, then the player’s original teamreceives two first-round draft picks if it decides not tomatch the new team’s offer.
– Finally, a player has the option to sign a multi-year deal with his current club until July 22 of the offseason inwhich he is “franchised.” After July 22, any contract signed by that player can be for only one year. He must sit
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SLAM ONLINE | » A Franchise Tag in the NBA http://www.slamonline.com/online/nba/2010/09/a-franchise-tag-...
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out the season if he opts not to put his name on a contract by November 16.
If your head is spinning, think of it this way. If an NFL team has a free agent whom they don’t feel confidentthey can re-sign to a long-term deal, they hold the card of applying the franchise tag and either retaining theplayer’s services for another year — albeit at a high price — or receiving two first rounders, depending on howthe scenario develops.
Given the power exerted by NBA players during this summer’s free agency period, and the power plays ChrisPaul and Carmelo Anthony have attempted on their current teams, the franchise tag would seem to be anappealing option for owners if they want to keep a star player from leaving via free agency. One formergeneral manager agrees.
“The franchise tag would be a huge hit for the owners,” said Steve Kerr, who returned to TNT’s broadcastbooth as its lead game analyst after three years as general manager of the Phoenix Suns. “One of the biggestissues they’re trying to accomplish with this next CBA is cutting down the length of guaranteed contracts andgetting rid of dead money — when a guy signs a $100 million deal and he gets injured.”
Kerr explained during a phone conversation that the franchise tag represents a way for teams to ward off aplayer’s free agency. Now, if the franchise tag as it exists in the NFL were applied to the NBA, any “franchised”free agent who was given non-exclusive status would still be able to shop his services around the League —it’s just that the signing team would have to send back two first rounders to the player’s original team. (It’spossible trade compensation could change if the NBA installed the tag into its CBA.) But Kerr’s point is correctin that the basis of a franchise tag is to restrict a player’s freedom.
For Gabe Feldman, director of the Sports Law Program at Tulane University, a franchise tag in the NBA wouldrepresent a team’s increased leverage versus a player demanding a trade.
“That might make it easer for teams to say ‘you can’t force our hand in the short run because we have a yearor two to work out a trade,’” Feldman said in a phone interview.
With the Denver Nuggets’ hand being forced by Anthony, they would likely welcome the ability to assign himwith a franchise tag next offseason. That would show inquiring teams that they wouldn’t be forced intoagreeing to a deal that they wouldn’t value as much had they been given more time to search for an idealtrade.
The ability for teams to gain leverage in those situations can’t be underestimated. Larry Coon, an NBA salarycap expert who runs the website CBAFAQ.com, said that while the Nuggets still control the Anthony situationto a degree, they don’t hold much leverage.
“Under a normal situation, if a player has one more year left to become a free agent and he wants to go, hecan hold a team hostage,” Coon said during a phone conversation.
The NBA probably doesn’t want too many more of its star players demanding trades considering Anthony andPaul’s reported recent trade demands come on the heels of Kobe Bryant demanding a trade from the LosAngeles Lakers in 2007. That’s an undesirable proposition for a league which still has image problems. Yet theplayers would have a reasonable argument against a franchise tag. Take Anthony’s possible scenario, forinstance. Imagine if the NBA adopted the franchise tag in its NFL form and put it into effect beginning nextoffseason. Furthermore, pretend Anthony wouldn’t sign a contract extension between now and then.
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5 Responses to “A Franchise Tag in the NBA”Bryan Crawford Posted: Sep.2 at 1:10 pm
As always, Kyle, very insightful stuff. Great read!
The Philosopher Posted: Sep.2 at 1:11 pm
Great piece.
Jer Boi Posted: Sep.2 at 1:26 pm
Great article really cleared things up.
JTaylor21 Posted: Sep.2 at 1:44 pm
Franchise Tag for the NBA is a really, really, really BAD idea. It would berestrictive to player movements and a determent to the free agency process.Of course the owners love this idea because it put even MORE power in theirgreedy hands and takes away one of the few advantages that players haveover teams.
IAMORANGE4EVER Posted: Sep.2 at 1:52 pm
No to the franchise tag. If a franchise truly wants to keep their franchiseplayers, then do whatever it takes to keep them - at least Cleveland tried withLeBron, but can you say Denver did all they could to keep Carmelo? Noway…they are the same franchise that gave away Camby for the right toswap second round picks, and some trade exceptions they ended up lettingexpire…the same franchise that refused to part with Linas Kleiza for RonArtest, only to watch that asset go overseas and then eventually end up onthe Toronto Raptors. Bottom line, don’t cut/shed salary to avoid luxury tax(Denver) and then cry when you’re franchise player wants to join anotherfranchise that is serious about WINNING.
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SLAM ONLINE | » A Franchise Tag in the NBA http://www.slamonline.com/online/nba/2010/09/a-franchise-tag-...
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