I'm in favor of greatly simplifying the system - cutting Larry Coon's FAQ down to about twelve items.
* Hard cap - some figure between the current "cap" and the luxury tax threshold. What's the average team payroll? Somewhere around $55M? Make the hard cap a little bigger, maybe $60M-$65M. Also impose a salary minimum of $35M-$40M, so teams can't chintz out on putting together a competitive squad.
* Contracts limited to three years, except max contracts allowed to be four.
* Two max contracts allowed per team. Max contracts equal to ~25% of the hard cap. As with Who's proposal, no salary increases built into the contracts. Might define "max contracts" as a percentage of the cap rather than a specific dollar amount; a max player could then earn "raises" if the salary cap was increases. 25% might also be too high - maybe closer to 20%?
* Rookie contracts stay more-or-less the same - slotted based on draft position, with two guaranteed years. Two team-option years. Given that high school players are no longer draft-eligible, I'd be open to letting players become free agents after three years (just one team option) instead of four.
* 2nd round picks - same basic structure as 1st rounders.
* All players are free agents after their fourth season.
* No more "MLE" and "LLE."
* Veteran minimum salary structure similar to what is in place today (more $$ for older vets), but all vet-minimum contracts count the same towards the cap. A five-year vet on a minimum contract might earn $1M, while Shaq earns $2M; both count as $1M for hard-cap accounting purposes. Don't want to discourage teams from signing older veterans.
* Teams that are hard-capped out but have experienced major injuries are allowed to petition to sign additional players at the minimum, but the injured players must be removed from the roster for a period of time (maybe the remainder of the season).
* As with the current system, cap holds of ~$1M for every roster spot (up to 12) that's unfilled.
* 16 roster spots - encourage teams to develop some prospects in the D-League. 12 active players.
* All players eligible to play in the D-League, with the player's consent (let injured guys rehab in D-League, like MLB players going to AAA). Good for the rehabbing players, good for the D-League to get some "names" playing.
... just some thoughts on what would make sense to me.