How the new CBA affects the Bulls in a nutshell (ESPN Insider)
How it helps: Not much. The designated player rule means it's now almost impossible that Derrick Rose will leave … especially when Rose will qualify for a rare contract that allows him to earn 30 percent of the cap instead of the normal 25 percent for rookies. But who are we kidding? Rose, who grew up in Chicago, wasn't going anywhere.
If the Bulls were to re-sign Keith Bogans, a 2012 free agent, after the upcoming season, they could still use the new "apron" rule that allows them to use their full midlevel exception even though it would put them over the luxury-tax threshold.
How it hurts: The Bulls will mostly be all smiles, but the truth is the new designated player rule actually hurt the Bulls. Yes, it virtually guarantees they lock up Rose, but it will come at a much higher cost. Under the old rules Rose was would earn a starting salary of $13.6 million. Under the new ones, his salary will come in at around $16.3M. Over the life of the deal Chicago will owe Rose an extra $15 million.
For a team that already has three big contracts on the books (Carlos Boozer, Joakim Noah and Luol Deng), the extra cash for Rose will make it that much tougher for the Bulls to stay out of the luxury tax starting in 2012-13. Owner Jerry Reinsdorf has never paid the tax before; will he be willing to do it now?
Immediate impact (this season): A lot, actually. The Bulls will sign Rose to a max extension this fall. That's a given. The question is whether they'll use their midlevel exception. The team really needs an upgrade at the 2 and there will likely be a number of veteran options available, including Vince Carter (assuming the Suns don't pick up his option), Jason Richardson and Jamal Crawford. Signing any of them will likely put them over the luxury tax both this season and for seasons to come.
Long-term impact (future seasons): The new, more punitive luxury tax doesn't kick in until 2013, but when it does, the Bulls should be well over the threshold. Reinsdorf isn't James Dolan. He runs a pretty frugal ship. The Bulls should be a great test case of whether the tougher rules on spending really do deter big-market teams from outspending small-market clubs.