NBA AGENT LICENSE EXAM QUESTIONS WITH
ANSWERS VERIFIED 100% CORRECT|
What is the Collective Bargaining Agreement? - ✔✔- [ ] It's the legal contract
between the league and the players association that sets up the rules by which the
league operates. (It's commonly abbreviated as "CBA," which is not to be confused with
either the Chinese Basketball Association or the Continental Basketball Association. The
abbreviation CBA will be used in the remainder of this document.)
The CBA defines the salary cap, the procedures for determining how it is set, the
minimum and maximum salaries, the rules for trades, the procedures for the NBA draft,
and hundreds of other things that need to be defined in order for a league like the NBA
to function.
The CBA also prevents the NBA from being in violation of federal antitrust laws. Many of
the league's practices (such as the salary cap and draft) would violate antitrust laws
were they not agreed to via collective bargaining (see question number 118).
Has there always been a salary cap? - ✔✔It may surprise you to learn that the NBA
first had a salary cap in 1946-47, its first season. The cap that season was $55,000, with
most players earning between $4,000 and $5,000. Star player Joe Fulks earned $8,000,
and Tom King earned a league-highest $16,500 for his combined duties as player,
publicity director and business manager for the Detroit Falcons.
The "modern" NBA salary cap began in 1984-85, at $3.6 million. It made steady but
gradual increases of around $1-2 million each season until 1994-95, when it was
$15.964 million. Armed with a big TV contract from NBC, the salary cap jumped to $23.0
million in 1995-96, and increased to $26.9 million in 1997-98, the last season of the
1995 CBA (a 647% increase in 13 years). The ABC/ESPN TV contract, which took effect
with the 2002-03 season, provided $4.6 billion over six years, but less in 2002-03 than
NBC paid in 2001-02. As a result, the salary cap went down for the first time ever in
2002-03.
Under the 2005 CBA the salary cap started at $49.5 million, and finished at $58.044
million, a 17.26% increase, and averaging 3.45% per year. However the salary cap
decreased in 2009-10, dropping from $58.68 million to $57.5 million. Under the 2011
, CBA the salary cap started at $58.044 million and finished at $94.143, a 62.19%
increase. This was driven largely by the new national TV deals that took effect in 2016.
See question number 6 for more information on NBA labor history.
What's the history of the CBA? - ✔✔Bob Cousy began to organize the NBA players in
1954, although the league refused to recognize the union until 1957. A near strike at the
1964 All-Star game forced the league to adopt a pension plan. The first CBA was
established in 1970, and new agreements followed in 1973, 1976 and 1980. The 1976
CBA coincided with the settlement of the "Oscar Robertson" suit, which was filed by the
players association in 1970 to block the NBA-ABA merger. The 1976 agreement also
provided limited free agency through the elimination of "option" clauses that bound
players to teams in perpetuity.
With the 1983 agreement the parties agreed to share league revenues. This agreement
also instituted the modern salary cap, which went into effect in 1984. When this
agreement expired the players filed an antitrust lawsuit, resulting in the "Bridgeman"
agreement which brought unrestricted free agency, reduced the draft to two rounds,
and added anti-collusion provisions.
Another antitrust lawsuit ensued in 1994 following the expiration of the 1988 CBA,
challenging the salary cap, college draft, and right of first refusal provisions. The parties
eventually reached a "no-strike, no-lockout" agreement that allowed the 1994-95
season to be played.
The parties came to terms on a new agreement in 1995, but the players tabled a
ratification vote and instead filed for union decertification. The league responded by
imposing a lockout. The parties quickly came to an agreement, and the players
subsequently voted against decertification. A new six-year agreement was ratified which
lifted the lockout before any games were missed, although the agreement was not
actually signed until 1996.
The NBA exercised its option to terminate the 1995 CBA following the 1997-98 season,
eventually imposing a lockout which took effect on July 1, 1998 and resulted in the
cancell
What happened to the negotiations in 2011, and why did they go so smoothly in 2016? -
✔✔The 2005 CBA guaranteed the players 57% of BRI (see question number 12).
ANSWERS VERIFIED 100% CORRECT|
What is the Collective Bargaining Agreement? - ✔✔- [ ] It's the legal contract
between the league and the players association that sets up the rules by which the
league operates. (It's commonly abbreviated as "CBA," which is not to be confused with
either the Chinese Basketball Association or the Continental Basketball Association. The
abbreviation CBA will be used in the remainder of this document.)
The CBA defines the salary cap, the procedures for determining how it is set, the
minimum and maximum salaries, the rules for trades, the procedures for the NBA draft,
and hundreds of other things that need to be defined in order for a league like the NBA
to function.
The CBA also prevents the NBA from being in violation of federal antitrust laws. Many of
the league's practices (such as the salary cap and draft) would violate antitrust laws
were they not agreed to via collective bargaining (see question number 118).
Has there always been a salary cap? - ✔✔It may surprise you to learn that the NBA
first had a salary cap in 1946-47, its first season. The cap that season was $55,000, with
most players earning between $4,000 and $5,000. Star player Joe Fulks earned $8,000,
and Tom King earned a league-highest $16,500 for his combined duties as player,
publicity director and business manager for the Detroit Falcons.
The "modern" NBA salary cap began in 1984-85, at $3.6 million. It made steady but
gradual increases of around $1-2 million each season until 1994-95, when it was
$15.964 million. Armed with a big TV contract from NBC, the salary cap jumped to $23.0
million in 1995-96, and increased to $26.9 million in 1997-98, the last season of the
1995 CBA (a 647% increase in 13 years). The ABC/ESPN TV contract, which took effect
with the 2002-03 season, provided $4.6 billion over six years, but less in 2002-03 than
NBC paid in 2001-02. As a result, the salary cap went down for the first time ever in
2002-03.
Under the 2005 CBA the salary cap started at $49.5 million, and finished at $58.044
million, a 17.26% increase, and averaging 3.45% per year. However the salary cap
decreased in 2009-10, dropping from $58.68 million to $57.5 million. Under the 2011
, CBA the salary cap started at $58.044 million and finished at $94.143, a 62.19%
increase. This was driven largely by the new national TV deals that took effect in 2016.
See question number 6 for more information on NBA labor history.
What's the history of the CBA? - ✔✔Bob Cousy began to organize the NBA players in
1954, although the league refused to recognize the union until 1957. A near strike at the
1964 All-Star game forced the league to adopt a pension plan. The first CBA was
established in 1970, and new agreements followed in 1973, 1976 and 1980. The 1976
CBA coincided with the settlement of the "Oscar Robertson" suit, which was filed by the
players association in 1970 to block the NBA-ABA merger. The 1976 agreement also
provided limited free agency through the elimination of "option" clauses that bound
players to teams in perpetuity.
With the 1983 agreement the parties agreed to share league revenues. This agreement
also instituted the modern salary cap, which went into effect in 1984. When this
agreement expired the players filed an antitrust lawsuit, resulting in the "Bridgeman"
agreement which brought unrestricted free agency, reduced the draft to two rounds,
and added anti-collusion provisions.
Another antitrust lawsuit ensued in 1994 following the expiration of the 1988 CBA,
challenging the salary cap, college draft, and right of first refusal provisions. The parties
eventually reached a "no-strike, no-lockout" agreement that allowed the 1994-95
season to be played.
The parties came to terms on a new agreement in 1995, but the players tabled a
ratification vote and instead filed for union decertification. The league responded by
imposing a lockout. The parties quickly came to an agreement, and the players
subsequently voted against decertification. A new six-year agreement was ratified which
lifted the lockout before any games were missed, although the agreement was not
actually signed until 1996.
The NBA exercised its option to terminate the 1995 CBA following the 1997-98 season,
eventually imposing a lockout which took effect on July 1, 1998 and resulted in the
cancell
What happened to the negotiations in 2011, and why did they go so smoothly in 2016? -
✔✔The 2005 CBA guaranteed the players 57% of BRI (see question number 12).
