The N.B.A.’s current proposal to the players includes a soft salary cap, a 50 percent share of revenues for players and these features:
¶ Salary-cap and luxury-tax levels in Years 1 and 2 of the new agreement will be no less than they were in 2010-11. By Year 3, they will be adjusted downward to conform to the new system.
¶ Sign-and-trade deals and the biannual exception will be available only to nontaxpaying teams.
¶ Extend-and-trade deals, such as the one signed by Carmelo Anthony last season, will be prohibited.
¶ The midlevel exception will be set at $5 million for nontaxpaying teams, with a maximum length between three and four years (alternating annually). The value of the exception will grow by 3 percent annually, starting in Year 3.
¶ The midlevel exception will be set at $2.5 million for taxpaying teams, with a maximum length of two years, and cannot be used in consecutive years. Its value will also grow at 3 percent annually.
¶ A 10 percent escrow tax will be withheld from player salaries, to ensure that player earnings do not exceed 50 percent of league revenues. An additional withholding will be applied in Year 1 “to account for business uncertainty” stemming from the lockout.
¶ Maximum contract lengths will be five years for “Bird” free agents and four years for others.
¶ Annual contract increases will be 5.5 percent for “Bird” players and 3.5 percent for others.
¶ Players will be paid a prorated share of their 2011-12 salaries, based on the number of games played once the season starts.
¶ Team and player contract options will be prohibited in new contracts, other than rookie deals. But a player can opt out of the final year of a contract if he agrees to zero salary protection (i.e., if it is nonguaranteed).