A change to the percentage of basketball-related income is one of the main issues of the NBA's collective bargaining agreement, but it won't be the only one.

"The BRI is one (issue)," said Adam Silver. "Also, when it comes to distribution of revenue, more now than in any of the CBAs I’ve been involved in, there has been more discussion about competition. (In previous CBA negotiations), the key issue was the split of the revenue and not how it was distributed. We could give you the 57 percent and you can decide how to distribute it among the players.

"Clearly, our view has changed. How that money is distributed among the players is a key component of competition around the league. In addition to our desire to create a model where all teams at least have the opportunity to be profitable, we also are focused on a model where all 30 teams have the opportunity to compete for a championship. There’s a recognition out there now that’s not the current model to the extent that we have a soft salary-cap system.

"For example, a team like the Lakers has a payroll of $110 million when you include the luxury-tax figure. With the salary cap at $57 million, that’s not a balanced system.

"What we’ve proposed to the players is a hard cap. We’ve looked at the NFL, and we’re not ashamed to say that appears to be a better system. There’s a lot more analysis we need to do with the players. I’m not suggesting we’re the NFL. But we believe through shorter contracts, less guaranteed money and a harder salary cap, we can create more parity among the teams in this league. We believe for the long-term success for the business, that’s important."

Deputy Commissioner Adam Silver gave a rare interview to Kerry Eggers of the Portland Tribune this week.

"From a revenue standpoint, things are great," said Silver. "We generate more than $4 billion a year, and growing, on a global basis. This season, (TV) ratings were up double-digits on all our networks. We’re seeing the same growth for local television rights. The Lakers just entered into a fantastic new television deal for the next 20 years. Global (marketing) expansion is terrific. Merchandising sales are going well.

"We’re spending too much on (player) salaries, though, and under our current CBA, we pay roughly 57 percent of gross (income) to our players. At our meeting during All-Star weekend, we told them prospects are wonderful, but the model is broken, and no business is sustainable over time that pays out more than it takes in. By definition, if we pay out 57 percent of the gross, it has to cost us less than 43 cents to generate every dollar, and that’s not the case."

Silver explains that the expenses of the NBA have increased and that there is greater competition in the entertainment landscape.

"Our expenses are up across the board. When I first came to the league 19 years ago, virtually every team had a waiting list for season tickets. The world has changed. There’s a ton more competition now for the entertainment dollar. In every one of our cities, there are a thousand-plus channels on most cable networks and unlimited amounts of programming on the Internet, and we’re competing against those things. The cost of marketing and selling are that much greater."

Following their trade of Carl Landry to New Orleans for Marcus Thornton, Sacramento's payroll has slipped below 75 percent of the salary cap.

The Kings’ payroll for the season has dipped to $42,489,034, which puts them $1,043,966 beneath the minimum.

Deron Williams does not become eligible for a contract extension until July, which is the three-year anniversary of his previous extension from July 18th, 2008.

Dwight Howard is also a potential member of the 2012 free agency class and is eligible to sign an extension now because he signed his in 2007. Howard first became eligible to sign an extension on July 12, 2010.

Chris Paul signed his previous extension on July 9, 2008, so he must also wait until July to sign an extension.

Williams and Paul must also wait until a new collective bargaining agreement is complete before an extension can be reached.

The Knicks and Nuggets are both extremely motivated to complete a Carmelo Anthony trade by 3:00 PM EST on Thursday, with the Nets sticking around as gadfly bystanders. If a trade is not consummated, it will be considered a gigantic failure.

Because one of the sides will need to budge from their current situation, we can be presented with a situation where Anthony remains on the Denver roster for the remainder of the season and playoffs.
 
So what options do the Nuggets, Knicks, Nets and Anthony have at that point?

Following the deadline, teams are prohibited from trading again until their season is over.

This means NBA trades cannot happen after 3:00 PM on February 24th until April 13th.

Once the regular season is over, however, the 14 teams that do not qualify for the playoffs can resume trading amongst each other. As playoff teams begin getting eliminated, they too become eligible to submit complete trades to the league office for approval.

But players who are are in the final non-exercisable season of their current contract cannot be traded after the deadline through June 30th. This applies to players who are in the final season of their contract, or have an early termination option for the following season.

With these rules as a backdrop, Anthony couldn't be traded after the deadline until July 1st.

But a loophole for Anthony does exist where a trade could happen.

If Anthony were to amend his contact to void his ability to exercise his early termination option, which means he will be under contract for the 11-12 season and can no longer become a free agent on July 1st, he will no longer be considered a "last non-exercisable year" player.

Anthony would do this if he were to participate in an "extend-and-trade", signing a three-year extension for the 12-13, 13-14 and 14-15 seasons.

So even though we have established that Anthony can be traded while receiving an extension after the deadline, there are further complications.

Many of the players who have been in Anthony trade proposals would be ineligible for trade after the deadline. Troy Murphy, Eddy Curry and Wilson Chandler are all "last non-exercisable year" players and therefore could not be traded after the deadline under any circumstance. Finding a trade that would work from a financial perspective and in terms of Denver's asking price on talent, would be extremely difficult.

Furthermore, one aspect of Denver's eagerness for an Anthony trade now is their goal to save a considerable amount of tax money. If the Nuggets were to complete a trade after the deadline would have no effect on their luxury tax bill.

Even though the February 24th deadline is the 'do or die' date for all intents and purposes, there is a small glimmer of possibility for Anthony to get an extension and a trade out of Denver if he remains on his current team's roster on Friday.

During his annual All-Star Game press conference, David Stern stressed the excellent health of the NBA in terms of its popularity around the globe.

But Stern also continued to stress the dire circumstances the NBA finds itself in financially. The NBA is seeking a reduction of player salaries, while also initiating a more expansive revenue sharing agreement amongst the 30 current franchises.

Stern was asked by Larry Coon of ESPN about the difference in interpretation of the NBA's financials between the owners and players.

"I think that there's no disagreement about the numbers," replied Stern. "There's a little intramural disagreement about certain items. But we have agreed to sit down and talk about what the deal point is, which will subsume those numbers.

"We sort of both agreed that the numbers are what they are and it doesn't pay to argue them anymore. They are real."

In spite of a large disparity between the NBA's wealthiest franchises and its middle and lower class, revenue sharing is a critical issue to Stern. The intent is to create better competitive balance.

"A robust revenue sharing plan (will) occur at the same time as we make a new Collective Bargaining Agreement," said Stern.

The revenue sharing discussions are an issue amongst owners and will be a separate issue from CBA talks with players.

Even though it was in Stern's comments that the gap between the owners and players is vast, he did sound hopeful that a productive dialogue will continue.

"I would say what gives me hope is the fact that a lockout would have huge negative consequences for everybody. And that's what gives me the hope and the belief that we are going to knock ourselves out to get it done."

One frequent refrain from Stern was the need for core changes to the NBA's financial structure.

"We need a different kind of model; if we thought we didn't, we would have extended the Collective Bargaining Agreement by a year, which was our right. So at this point, the owners know what their numbers are and what they need to do, and I think the players are beginning to understand it."

The owners and NBPA had a meeting on Friday that was amicable, but the two sides remain far apart on key issues.

LeBron James took a vocal role in Friday's collective bargaining meeting in Los Angeles, according to sources that spoke to Ken Berger.

The main argument from James came against hard-line owners who recently bought NBA teams and are now trying to create a dramatic financial shift to the system.

“This has been a 57 percent system for years,” said a person who was in the meeting, paraphrasing James’ message. “This has been a system with guaranteed contracts forever. What did you guys expect? What did you think you were getting into?”

NBPA executive director Billy Hunter came away from Friday's meeting with the owners with a more optimistic frame of mind than when he entered the room.

The players and owners will increase the frequency of labor talks, according to Hunter, though talks are still expected to go down to the wire.

But the NBPA says a hard salary cap is not something players are likely to ever accept.

Derek Fisher said that a lockout will only occur if the owners force it upon the players. Fisher also said that the players are fighting against the elimination of the NBA's middle class.

LeBron James was asked by the media on Friday if the players are "absolutely" united in their labor negotiations with the owners.

"I'm optimistic about (a new CBA). Hopefully both sides can come away with an agreement that benefits both sides. No one wants to see a lockout, not the fans, not the players, not the owners. This game is too big and everyone enjoys it so much. Hopefully things can get situation before the start of the season."