NBA Middle Class Struggles: Squeezed Salaries and Unemployment under New CBA

Former Orlando Magic forward Bol Bol had an impressive season last year, showcasing his scoring, rebounding, and shot-blocking abilities. However, when it came time for contract negotiations, the 24-year-old settled for a one-year veteran’s minimum deal with the Phoenix Suns, worth just $2.165 million. This situation highlights the challenges faced by NBA players who are not considered franchise cornerstones but still deserve fair market value under the league’s new collective bargaining agreement.

The NBA has seen a significant disparity in salaries, with teams allocating a large portion of their salary cap to their top three players. Out of the approximately $3.8 billion in player salaries signed this summer, $2.5 billion, or 64%, is split among just 19 players. This includes players like Jaylen Brown, who recently signed the richest contract in NBA history, as well as Dillon Brooks and Bruce Brown, who will earn over $20 million annually.

Unfortunately, this leaves quality veteran players with a history of production unemployed or forced to take pay cuts. Players like Malik Beasley, Dennis Smith Jr., and Yuta Watanabe opted for one-year deals at the veteran’s minimum, despite their contributions to their previous teams. Approximately one-third of NBA deals signed this summer were at the veteran’s minimum.

The new CBA heavily favors face-of-the-franchise level players, leaving little room for the remaining players on a team’s roster. Impact players like Will Barton, Kelly Oubre Jr., T.J. Warren, Terrence Ross, and Christian Wood have yet to secure deals, and if they do, it will likely be at or near the minimum, as most teams have already allocated their cap space elsewhere.

Austin Rivers, a longtime NBA role player, expressed frustration with the current CBA on a recent podcast. He highlighted the top-heavy nature of contracts, where players either make $50 million or $2 million, with little in between. Rivers emphasized that many mid-level players are signing for the veteran’s minimum, which he finds laughable.

Front offices are responding to the new CBA’s terms, which impose penalties on teams exceeding the luxury tax threshold. The implementation of a second apron has led teams to shed salary, as seen with the Brooklyn Nets trading Joe Harris and Patty Mills without receiving players in return. The second apron restricts roster-building flexibility, as demonstrated by the Phoenix Suns, who have committed $550 million in guaranteed salary to four players. As second apron offenders, the Suns were unable to use the mid-level exception and had to fill their roster with veteran’s minimum contracts.

The new CBA also introduces a luxury tax multiplier, which will come into effect in the 2025-26 season. This multiplier reduces the tax rate for teams in the first two tax brackets but significantly increases it for teams in higher tax brackets. It discourages teams from re-signing non-franchise cornerstone players and limits their options for lucrative contracts elsewhere in the NBA.

Overall, the new CBA has created a challenging landscape for NBA players who are not considered franchise cornerstones. The league’s middle class is feeling the squeeze, with many players settling for minimum contracts or remaining unemployed. The disparity in salaries and limited opportunities for these players highlight the need for further examination and potential adjustments to the current collective bargaining agreement.