BaseYear Compensation Player

Most people believe NBA trades don't happen because teams
are reluctant to pull the trigger. In some cases that my
be true, but most of the time it comes down to three
complicated words -- Base Year Compensation.

A player falls under BYC when his team's Team Salary
exceeds the salary cap - estimated $35.5M for 2000-2001 -
and the salary in the first year of a new contract is in
excess of 120% of the player's salary from the previous
season. The BYC will replace the actual salary for his
current team if the player is traded, however the actual
salary is the number that counts against the team's Team
Salary.

The BYC in the first year of a new contract will equal,
the greater of the salary from the last year of the
previous contract or 50% of the first year salary. In the
second year of the new contract the BYC will equal, the
greater of 120% of the last year of the previous contract
or 75% of the player's second year salary.

To keep things simple, the team taking the BYC player in
a trade can accept his entire salary, but the team sending
the player can only receive, at most, a salary(s) within
15% + $100,000 of the designated percentage of the actual
salary.

Here are some other BYC rules:

1) It does not apply if a team has room under the cap after
the contract is signed
2) It does not apply to a player who completed a one-year
contract with a new team and re-signed with that team.
3) A player will lose the BYC tag when 1);he is traded;2)
his team gets under the cap;3)he completes the first two
years of the new contract.
4) Starting July 1, 2001 BYC will last only one year.
5) The duration of BYC is in calendar years.
6) Players signing contracts after the lockout ended were
effected for three (99, 99-00 and 00-01) seasons.
Most will have the BYC lifted around January 20, 2001.