Trying again to stop fast-breaking players

Sporting News, The, Sept 12, 1994 by David Moore

A starting lineup that features Chris Dudley, A.C. Green, Horace Grant and Toni Kukoc wouldn't win many games in the NBA, but those four should be favored to win against the league in court.

The league has voided their contracts because they used a one-year-and-out clause to their advantage. The NBA challenged that clause in court with Dudley last year and lost.

The issue will be in court again Monday. The league will argue that the clause violates the spirit of the salary cap because a club can re-sign its own player at any price. In the NBA's protectionist view, Portland, Phoenix, Orlando and Chicago are exploiting a loop-hole and endangering the system.

The judge appeared to leave the legal door open last year, indicating he would look at these contracts in a different light if they became a trend. That is the NBA's contention.

"As we read the ruling, the judge was not convinced these type of contracts would have a long-term impact on cap," says Joel Litvin, the league's general counsel. "But he said if it became widespread, he could construe it as cap circumvention.

"Since the Dudley contract last year, virtually every significant contract signed contained a one-year-out clause. We can't imagine more of a widespread situation, to use the judge's words."

Widespread? Roughly 3 percent of the league's 324 players have signed contracts that give them the option to become free agents after one season. That doesn't seem to constitute a trend.

That is just one area where the NBA is on shaky ground. If the league considers these contracts so dangerous, then why did it approve the deals of Boston's Dominique Wilkins and San Antonio's Sean Elliot and Chuck Person? Each can become a free agent at the end of next season.

The NBA didn't challenge those contracts because it says the players received market value. But the league office isn't in the business of determining a player's worth. That function falls to the individual clubs.

Here's another major problem: The NBA says the "out" clause circumvents the cap. But doesn't the NBA circumvent free agency by telling a player he can't sign with the club of his choice? If an athlete is willing to take less to play for a team for one year, then how can the NBA say no?

"If a player wants to take less money to sign somewhere else, he certainly has the right to do that," Litvin says. "The difference here is that he is not doing that. He is not taking less. He may be taking less in one year, but in every single case, he's getting the money back and then some. Obviously what happens is that he really is not taking less money at all. I think the numbers speak for themselves."

Dudley turned down an $18-million deal from New Jersey last year to sign a seven-year, $11-million contract with Portland. He recently exercised the clause and signed a six-year, $24.18-million contract with the Trail Blazers. The NBA argues that Dudley never would have gone to Portland if he didn't have the promise of more money down the road.

"The rules were so complicated at the time of the collective-bargaining agreement, we knew there may have been ways to abuse the cap that we didn't anticipate," Litvin says. "We knew there could be some gaping holes. That's why we have the circumvention provision, to address contracts that clearly intend to circumvent the cap.

"It can't be the case that literally, this is in compliance so therefore it's OK. You can't say this is fine because it's not afoul of the literal language. It's our job to challenge the contract and try to get a judge to agree."

The NBA probably will not be able to stem the tide. This is an issue that must be resolved in collective bargaining, and the players hold the hammer.

Around the league

After 10 years away from the league, Dave Cowens is back as a Spurs assistant coach. That means dealing with Dennis Rodman, although Cowens says he has no problem with the forward. "You get a lot of these guys (who) are sort of publicity hounds and do a lot of extroverted things, and I don't really buy into that," Cowens says. "Hopefully I can have some influence on at least the San Antonio team to be as professional as possible and to enhance this great game of basketball." . . . Speaking of assistants, K.C. Jones joined the Pistons staff. He was an assistant in Boston when current Pistons Coach Don Chaney played for the Celtics. . . . Atlanta, Seattle and Chicago have expressed interest in free agent Larry Nance. But Nance's agent, Bob Ranallo, says Nance won't seriously pursue a contract unless he's convinced he'll be able to extend his career. "In all candor, he's continuing to rehab his knee," Ranallo says. "If he's healthy, he'll play. But he needs to resolve that in his own mind." . . . The Clippers and Suns are interested in free agent Wayman Tisdale. The Clippers have more money to give, but Tisdale says he would be willing to take less than his $2.3 million 1993-94 salary to play for a winner. That would eliminate the Clippers. . . . Suns forward Cedric Ceballos is available. Because Ceballos is a base-year player -- he counts $2.1 million against the cap, but the Suns can assume only $235,000 in return -- the club wants a draft pick in return. The Lakers are among those with interest.