This Collective Bargaining Agreement began effective April 25, 2003 and runs through October 14, 2006. The WNBA will have the option to extend the terms of the CBA until September 15, 2007 unless certain revenue targets are met.

Under the Collective Bargaining Agreement, all teams are subject to a Salary Cap and Minimum Team Salary for each season. The Salary Cap places a limit on the total salaries each team can pay its players during the season, subject only to a very limited �Hardship Exception� (See E below). The Minimum Team Salary is the minimum amount that a team must pay its players in total salaries by the end of a season.

The Salary Cap for 2006 is $700,000. The Salary Cap for each year of the Collective Bargaining Agreement is listed below.

2003	$622,000
2004	$647,000
2005	$673,000
2006	$700,000
2007 (option)	$728,000

The Salary Cap for a year goes into effect on January 1 and continues in effect until December 31 the following year.

The minimum Team Salary for each season is 90% of the salary cap.

2003	$559,800
2004	$582,300
2005	$605,700
2006	$630,000
2007 (option)	$655,200

A team may sign players to the extent it has Room. Room is the amount by which a team�s Team Salary is less than the Salary Cap.

1. In general, a contract between a team and a player can be no longer than three years in length.

2. A contract between a team and its own free agent, who has been with the team for at least two years may be no longer than four years.

3. Contracts with drafted rookies are all three years in length, plus a team option for a fourth year.

4. Undrafted rookies may sign for one or two years.

5. No financial terms of any player contract may be disclosed to the public by the WNBA, WNBPA, a team or its employees, the player or the player�s agent.

The WNBA Salary Cap is a �hard cap� and can only be exceeded due to extenuating circumstances involving player injuries and other medical conditions. In general, a team�s active roster must fall below ten players before a team would be permitted to sign a replacement player that would cause the team to exceed the Cap.

The maximum salary increase or decrease from year to year in a multi-year contract is 4% of the first year�s salary (not 4% of the immediately preceding year�s salary). Rookie contracts increase by 2% per year.

Examples

1. A player makes $50,000 in the first year of a three-year contract. In the second year of the contract, she can make anywhere from $48,000 to $52,000. In the third year of the contract, depending on her second-year salary, she could make anywhere from $46,000 to $54,000.

2. The first pick in the 2004 WNBA Draft makes $40,800. In year two, she will make $41,616, and in year three, she will make $42,432.

1. A team�s Team Salary is the amount that is measured against the Salary Cap to determine if a team is under the Cap and by how much.

2. The principal components of Team Salary are the salary amounts owed to players under contract and to players who have been waived but are still being paid because their contracts were guaranteed.

3. From February 1 until the day prior to the first day of the regular season, a team may sign players to training camp contracts (non-guaranteed, one-year contracts at the minimum salary) that will not be included in Team Salary until the first day of the regular season.

Players and teams may not negotiate or enter into contracts with one another from the end of the regular season until January 31 of the following year. Players and teams may begin to negotiate player contracts from January 15 through the end of January but cannot sign contracts (or offer sheets) until February 1.

The CBA places maximum and minimum limits on the salary players can earn in any one season.

Generally, the limits are as follows

1. Maximum Salary

   2003	$85,000
   2004	$87,000
   2005	$89,000
   2006	$91,000
   2007 (option)	$93,000

2. Minimum Salary for players with at least four years of service

   2003	$42,000
   2004	$43,680
   2005	$45,427
   2006	$47,244
   2007 (option)	$49,134

3. Minimum Salary for players with 0-3 years of service

   2003	$30,000
   2004	$30,600
   2005	$31,200
   2006	$31,800
   2007 (option)	$32,400

Drafted rookies may only sign a three-year, non-guaranteed contract with an option in favor of the team for a fourth year. Rookie contracts increase in the second and third year by 2 percent each year. The fourth team-option year salary must represent a 5% increase over the third year.

	Picks 1-4	Picks 5-8	Remaining 1st Round	2nd Round	3rd Round & All Others
2003	$40,000	$37,000	$33,000	$31,000	$30,000
2004	$40,800	$37,740	$33,660	$31,620	$30,600
2005	$41,600	$38,480	$34,320	$32,340	$31,200
2006	$42,400	$39,220	$34,980	$32,860	$31,800
2007	$43,200	$39,960	$35,640	$33,480	$32,400

1. Unrestricted Free Agents

   Beginning with the 2006 WNBA Season, players with at least six years of service are Unrestricted Free Agents and may sign with any team unless such player is designated as a �Core Player.� (See III below)

   2003	No unrestricted free agency
   2004	6 or more years of service required
   2005	6 or more years of service required
   2006	6 or more years of service required
   2007 (option)	6 or more years of service required

2. Restricted Free Agents *

   For the 2006 WNBA Season, players with four or five years of service are considered Restricted Free Agents and may sign an Offer Sheet with any team. (See B: Right of First Refusal Rules)

   2003	6 years of service required
   2004	5 years of service required
   2005	4 or 5 years of service required
   2006	4 or 5 years of service required
   2007 (option)	4 or 5 years of service required

3. Reserved Players*

   For the 2006 WNBA Season, a player with three or fewer years of service is considered a Reserved Players and can sign only with her prior team.

   2003	5 or fewer years of service required
   2004	4 or fewer years of service required
   2005	3 or fewer years of service required
   2006	3 or fewer years of service required
   2007 (option)	3 or fewer years of service required

   * Please note that teams are required to make �Qualifying Offers� at pre-determined amounts to players in order to retain exclusive negotiating rights or rights of first refusal.

1. Offer Sheets. If a Restricted Free Agent receives an offer from a new team that she wants to accept, the player and the new team must provide the terms of the proposed deal to the player�s prior team in the form of an Offer Sheet.

2. Matching. The player�s prior team has 10 days from when it receives the Offer Sheet to �match� the Offer Sheet by agreeing to its terms. If the prior team does not match within 10 days, its right of first refusal expires and the player�s agreement with the new team becomes binding.