SOME ISSUES THAT LED TO NBA LOCKOUT

Some of the collective bargaining issues that led to the lockout announced
Monday by the NBA:

SALARY CAP: The current ``soft'' salary cap is $26.9 million per team,
which may be exceeded when teams re-sign their own veteran free agents. The
owners want to install a ``hard'' cap, which could not be exceeded, tied to
a designated percentage of basketball-related income. The players have
proposed a tightening of the cap if salary expenditures rise significantly
above their current level.

LARRY BIRD EXCEPTION: This is the rule that allows teams to re-sign their
own veteran free agents regardless of salary cap constraints. The league
has proposed phasing out the exception. The players want to retain the rule
in its current form.

ROOKIE SCALE: All first-round draft choices now must sign three-year
guaranteed contracts that cannot be extended until two years have passed.
The league has proposed a five-year rookie scale with a right of first
refusal for at least one additional year. The union is not strongly opposed
to longer rookie contracts.

SHRINKING MIDDLE CLASS: Almost 20 percent of the players are earning the
minimum salary of $272,500, usually because two or three players on each
roster are taking up most of the cap space. The players want a salary scale
for veterans with increased minimums based upon years in the league.

DRUG POLICY: Only heroin and cocaine are covered in the current drug
agreement. The league would like to add provisions dealing with marijuana
and alcohol abuse. The union has resisted changes, saying the league's most
recent proposal places all players under increased scrutiny, penalizing
them for the transgressions of a few.

Checked-by: Mike Gogulski