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MLBPA AGENT ACTUAL EXAM Questions
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What happens if a player is represented by a non NCAA certified agent? - He may lose eligibility What is a Team option? - option clause that allows the team to extend the players contract another year .... FIRST round draft pick are the only contracts with 2 consecutive team options. What is a Cap hold? - a hold in a teams salary cap for players salaries that are expected to be owed Rookie Exception - exception used to sign first round draft picks regardless of salary cap Unrestricted Free Agent - free agent that is free to sign with any team without restriction No player shall be eligible for selection in more than NBA Drafts? - 2 The athlete has to be at least years of age during the calendar year in which the Draft is held? - 19 How many NBA seasons has to elapse since the player's graduation from high school to be eligible for the draft? - 1 TRUE or FALSE The player has signed a player contract with a professional basketball team "NOT" in the NBA and has rendered services under contract prior to the January 1 immediately preceding such Draft. This player is not eligible for the draft.? - FALSE player is eligible Early entry players are those who express desire to be selected in the Draft in a writing received by the NBA at least days prior to such Draft? - 60 days prior Early Entry player who is eligible in the next NBA Draft shall withdraw by providing written notice received by the NBA days prior to such Draft? - 10 days How old does an international player have to be to be eligible for the draft? - 22 TRUE OR FALSE A team keeps the players draft rights while the player is playing professional "non" NBA basketball and salary is not counted towards team salary. - TRUE TRUE or FALSE If the team does not offer the required tender by the required date the player becomes a
If the Team has made a Required Tender to the player , a shall not be permitted during the time the player has to accept the Required Tender? - Renunciation rookie free agent? - TRUE How much money does draft picks count as for matching purposes for trades? - $ How many picks are in the first round? - 30 Salaries for first round draft picks are regulated by the Rookie Scale - TRUE What percentage is the Rookie Scale "set" at? - 100% First round contracts can be negotiated "up to"? - 120% Who are REQUIRED TENDERS issued to? - 1st and 2nd Round draft picks First round draft picks contracts are for 2 years. How many team options are in a first round draft picks contract? - 2 consecutive team options What exception is used to sign first round draft picks? - Rookie Exceptions What must required tender for second round draft picks be? - At least MINIMUM salary Teams must use what to sign Second round draft picks? - Cap room or exceptions Second round draft picks do not have a cap hold until when? - Until they are signed TRUE or FALSE If a second round draft pick is waived, the team they were signed to are the only ones that can sign them to a Two Way contract that season - TRUE For Agents with 0 - 9 players are required to pay? - $2, For Agents with 10 - 19 players are required to pay? - $5, For Agents with 20 players or more are required to pay? - $ 7, TRUE or FALSE The dues are charged to the AGENCY and not the AGENT? - FALSE dues are thet agent's responsibility How can athletes signed to an agent be added into the "agent" player count? - By earning an NBA salary Does G-League players count towards your agent dues? - No. G-League players do not earn a NBA salary Can agents represent both players and coaches or gms? - No. An AGENCY is allowed to represent players, coaches, gm's. With having multiple assigned agents
How are minimum salaries calculated? - based on Actual years of service How can a 2 way player become a restricted free agent? - Being on an NBA Active List or Inactive List for at least 15 days in the previous season What is a player that is said to have " Bird Rights "? - A player that has played for the same team for 3 years, and is a RESTRICTED FREE AGENT, they are able to received larger salaries and longer contracts What is the correct term for "BIRD RIGHTS"? - Qualifying Veteran Free Agent What exception do teams have to use in order to resign RESTRICTED FREE AGENTS ? - BIRD EXCEPTION How can a player lose Bird rights? - Once Bird rights are established the player does not lose them unless they are "RENOUNCED" or "SIGNS" with another NBA team A standard contract cannot exceed how many seasons? - 4 seasons (exceptions to the rule) What players enter into a 5 year contact? - QUALIFYING VETERAN FREE AGENTS VETERAN EXTENSION ROOKIE SCALE EXTENSION What players enter into a 6 year contracts? - DESIGNATED VETERAN PLAYER EXTENSION DESIGNATED ROOKIE SCALE PLAYER EXTENSION Why will a team renounce a players BIRD RIGHTS? - In order to save cap room Can a team resign a player once his BIRD RIGHTS have been renounced? - YES , a team can resign a player at "different terms" that are not required by BIRD RIGHTS Can a player signed to 2 way contract accrue BIRD RIGHTS? - YES , a player can accrue BIRD RIGHTS in the same manner as players signed to a standard contracts. (Playing at least 3 seasons) What is the "LARRY BIRD EXCEPTION"? - exception allows teams to exceed the cap in order to resign their own free agents up to the player's MAXIMUM salary What is a Non Bird Exception? - An exception that allows a team to resign its own free agent to a salary starting at up to 120% of his PREVIOUS SEASON'S salary. (Minimum salary) What is a Early Bird Exception? - team may use to re sign its own free agent for 175% of his salary in the previous season What is Player Options? - gives the player the option to extend the contract. It can only be one option What is an Early Termination Option? - gives the PLAYER the right to terminate contract early.
Must be on a 5 year contract. (NOT ALLOWED ON VETERAN EXTENSIONS) What is an Offer Sheet? - When a RESTRICTED FREE AGENT wants to sign with another team the player and team sign an offer sheet
If the player is waived from July 1 to August 31 , then how is his remaining salary paid?
- Over twice the number of years remaining on his contract , plus one. If the player is waived from September 1 to June 30 , then how is the current season paid? - Per the normal payment schedule, and any remaining years are stretched over twice the number of years remaining plus one. TRUE OR FALSE If a player is waived between July 1 - August 31, the initial year is not stretched. - FALSE What is the Initial Year Payment Schedule, Can the Subsequent Years be Stretched, and what Subsequent Year Payment Schedulei is used for a player waived between July 1st - August 31st? - Initial Year Payment Schedule: Original Contract Subsequent Years Stretched: Yes Subsequent Year Payment Schedule: Paragraph 3 unless otherwise specified TRUE OR FALSE Players waived between Sept 1 - June 30 CANNOT get their initial year stretched. - TRUE For players waived Sept 1st - June 30th the Initial Year Payment Schedule and Subsequent Year Payment Schedule can be found where? - Paragraph 3 unless otherwise specified What is Salary Cap? - It is referred to as room in CBA. Room is the amount of money available for a team to sign new players...Ex. free agents What is a cap hold? - a placeholder in the salary cap total for specific instances. Ex. draft picks. TRUE OR FALSE If a team is above salary cap they are required to use exceptions in order to sign new players. - TRUE What is Tax aka Luxury Tax? - A penalty fee placed on teams that operate outside of the Tax level Tax level is determined by using what calculation? - 53.5 % of BRI ( Basketball Related Income ) minus projected benefits divided by # of NBA Teams TRUE OR FALSE hard cap cannot be exceeded for any reason. - TRUE Hard capped teams must create room before signing a new player by using the following.... - waivers, summer contracts, and stretch provisions
TRUE OR FALSE
A soft cap does not contain exceptions that allow teams to sign players or make trades that exceed the cap - FALSE, A soft cap does contain exceptions. NBA operates mainly in a soft cap which is why teams are allowed Taxed What is an Apron? - a specific point above the tax threshold (Apron will be given in exam ) Apron rises and falls by percentage of the cap rise and fall. - 1/ When discussing Tax threshold what should be noted? - Note that the team salary is calculated at the conclusion of any transaction. TRUE OR FALSE Teams are restricted when they are BELOW the Apron ( hard capped ) - FALSE, teams are restricted when they are ABOVE the Apron Teams above the Apron cannot use which exception? - Bi-Annual Exception Teams above the Apron have a smaller Mid Level exception that can be used to offer a mid-level contract no longer than years. Other teams can offer 4. - 3 TRUE OR FALSE Teams cannot receive a player in a sign and trade transaction if it ends in the team being above the apron - TRUE When do they calculate whether the team is over or under the Apron? - After the full sign and trade transaction , and not just the signing TRUE OR FALSE Teams above the Apron have the same protections under the Gilbert Arenas provision - FALSE, They do not have the same protections What is the Gilbert Arenas provision primarily intended for? - To protect teams from losing their successful second round picks, who are typically Early Bird free agents after two years Under the Gilbert Arenas Provision.... Teams are limited in the salary they can offer in an Restricted Free Agent TRUE OR FALSE If the full amount of the exception is not used teams are able to later use the remainder and if they exceed cap they are said to use Taxpayer Exception. - TRUE, "It cannot be the other way around" offer sheet to a with one or two years in the league. -
Teams can apply for the disabled player exception from , and With the minimum player salary exception contracts can be up to two years in length. In a two year contract the salary in the year is specified in the minimum salary scale in effect when the contract was signed. - Second With the minimum player salary exception can the contract contain a bonus of any kind?
- No TRUE OR FALSE The minimum player salary exception can also be used to acquire minimum salary players via trade. - TRUE With the minimum player salary exception there is limit to the number of players that can be signed or acquired. - No What is the Disabled Player Exception? - This exception allows a team which is over the cap to replace a disabled player who will be out for the remainder of that season ( Klay Thompson ) cannot apply after January 15 - July 1 through January 15 When using the disabled player exception the team may sign a free agent for one season only , for of the disabled player's salary or the amount of the Non Taxpayer Mid Level exception , whichever is less - 50% TRUE OR FALSE When using the disabled player exception the team may trade for a player in the first season of his contract only (including any option years), who is making no more than 50 % plus $ 100,000 of the disabled player's salary , or the amount of the Non - Taxpayer Mid Level exception plus $ 100,000 whichever is less - FALSE, The player MUST be in the last season of his contract The Minimum Player Salary Advance Limit for a Season shall equal the lesser of what?
- 80% of the amount of the player's Compensation for such Season that is protected for lack of skill and injury or illness OR 7.5% of the player's Base Compensation for such Season When finding the minimum player salary advance, always look at what first? - The date For non minimum contracts , a player can receive an advance of the lesser of? - 80% of the protected base compensation or 50% of the base compensation. No more than 25% before OCT 1st What are exhibits? - Exhibits are 10 sections at the end of the Uniform Player Contract (UPC) that are negotiable. The topics range from compensation protection to prohibited activities.
What is minimum player salary? - Minimum Player Salary is the minimum salary a player can be paid for an NBA salary. The minimum salary a player can receive is dependent on what? - his years of service TRUE OR FALSE Base Compensation is the amount of compensation a player can receive after May 1 of the following season. - FALSE, this is called Deferred Compensation The compensation excluding all bonuses is called what? - Base Compensation When a team places a player on waivers they are essentially what? - Ready to part ways with a player and allowing other teams to pick up that players contract during the "waiver period" which is 48 hours. What happens if another team does not "claim the player off waivers" within 48 hours? - The player is said to have "cleared waivers" and becomes a unrestricted free agent. What is Sign & Trade? - When a team signs their free agent for the sole purpose of trading them within 48 hours. If the trade does not occur the resigning of the player is also voided. A contract signed after the start of the season that will employ a player for the rest of the season is called what? Bonus The salary cannot be less than what? - Rest of Season Contract; Minimum Player Salary An agreement between the player and the team is called what? - Uniform Player Contract (UPC) TRUE OR FALSE The first 28 pages of the UPC document are non negotiable. Players are able to negotiate the Exhibits in the back of the contract. - TRUE What is Exhibit 1 - Exhibit 1A-? - Exhibit 1: Compensation Exhibit 1A: Compensation minimum player salary Does the NBA pay a portion of Veteran Players salaries that are signed to minimum contracts? - Yes, in order to calculate it go to the chart on LC Q22. Players on minimum salary contracts may receive salary advances and deferred compensation, as well as trade bonuses and Exhibit 10 bonuses. They CANNOT receive what? - Loans or other types of bonuses
Players signed under the designated rookie scale player extension must have a first year salary in the extended term of at least of that year's salary cap. - 25% What exhibit spells out terms of a trade payment and who is responsible for the payment? - Exhibit 4: Trade Payments What does Exhibit 6: Physical Exam refer to? - Requires a player to pass a physical in order to validate the contract. Only new contracts can have Exhibit 6 so extensions do not have Exhibit 6, includes veteran contracts also For team options in Rookie Scale contracts , the window opens when? - At the end of the July Moratorium and closes on October 31 of the calendar year prior to the year the option takes effect. When offering team options the window for players who will be restricted free agents closes when? - No later than June 25th of the year the option takes effect (an earlier date may be specified as a matter of individual negotiation). The window for all other options can close when? - No later than June 29 of the year the option takes effect (an earlier date may be specified as a matter of individual negotiation). What are extensions? - Extensions are amendments to a contract that add seasons to the contract's existing term. TRUE OR FALSE Contracts covering 1 or 2 seasons (including any option year) can be extended. - FALSE, They cannot be extended Contracts covering 3 or 4 seasons (including any option year) may be extended when? - On the second "SEASON" anniversary of being signed. Contracts covering 5 or 6 seasons (including any option year) may be extended when? - On the third "SEASON" anniversary of being signed How many years does a Designated Rookie Scale Player Extension add to the player's Rookie Scale Contract? - 5 new years for a total of 6 years when the remaining year is included To sign this extension , the player must be a qualifying veteran free agent at the time his Rookie Scale Contract ends. How many players can a team have under the designated rookie scale player extension? - Two In order to be a designated rookie and veteran you must meet the following criteria? - *The player was named to the All NBA First , Second or Third team in the most recent season or both of the two seasons that preceded the most recent season.
- The player was named the Defensive Player of the Year in the most recent season , or both of the two seasons that preceded the most recent season.
- The player was named the NBA Most Valuable Player in any of the three most recent seasons.
- Two In order for a veteran player to be eligible for the designated veteran player extension, the veteran must..... - *Have one or two seasons remaining on his current contract *Be entering his 8th or 9th season in the league *Played his entire career for the same team (or if he changed teams did so only by trade during one of his first four seasons in the league) *Have met at least one of the max performance based criteria If eligible for the designated veteran player extension, the player's salary in the first year of the extension must be what? - At least 30% and no more than 35% of that year's salary cap. True or FALSE A player cannot be traded for one year if signed to a designated veteran player extension. - TRUE Rookie scale contracts may be extended for up to seasons beyond the last option season in the contract. - Four How many team option years does a rookie scale contract have? - Two TRUE OR FALSE Rookie scale contracts cannot be extended even if the team receives the player in trade. - FALSE, they can be extended Can a rookie scale contract be extended through an extend and trade transaction? - Yes, but there is no benefit in doing so The player must have the max salary in the first year of the extension and salary may be any amount between 0-9 year maximum if he meets what criteria? - If the player meets the 5th year Max criteria Teams can only have 2 Designated Rookies who receive extension bringing contract to total. - 5 season; 6 seasons No person other than a Player representing himself shall be permitted to conduct contract negotiations assist or advise with NBA Teams unless he ... .. - is a currently certified as a Player Agent and has a current Standard Player Agent Contract signed with the Player a Player Agent must negotiate and execute a contract for a Player with an NBA Team at least once during a period of. .... .. - 5 years For any Player Agent certified the five year period will begin on - July 1 (2016)
" Rookie Scale " the Player Agent shall receive , no greater than a fee of of the compensation in excess of the 80 % that is guaranteed under the Rookie Scale? - 4 % If the Player Agent negotiates a Player contract whereby the Player receives only the " MINIMUM" compensation NBA fseason. The Player Agent shall receive no greater of a fee of? - 2% , unless player agent has agreed to a lesser percentage If a Player signs a 3 year player contract whereby the compensation in Year 1 is in excess of his applicable minimum compensation and the compensation in Years 2 and 3 is only his applicable minimum compensation then the Player Agent may charge a fee of? - Player Agent may charge a fee of no greater than 4 % on Year 1 .... and 2 % on Years 2 and 3 If the Player Agent negotiates a contract whereby the compensation the individual Player receives is in "EXCESS" (more than) of the minimum compensation for one or more playing seasons the Player Agent shall receive no greater than a fee of ...? - 4% unless the and agent have agreed to a lesser percentage. What happens when a player does not withdrawal from the draft in required time? - Lose NCAA eligibility TRUE OR FALSE. If a player is drafted and cut they still maintain NCAA eligibility. - FALSE they lose NCAA eligibility
