Stern came out today and said that he wants to reduce payroll 30%. That would make me assume that a max salary would go down by 30%. I've also read that several owners want to see the rules changed so that they avoid the Lebron/Bosh/Melo scenario with their stars. I imagine that it will be pretty easy to craft something that makes it hard for a max salary player to leave through free agency. I also would guess that most of the players would agree to give in on that pretty easily. It would only affect the top echelon players, and the vast majority of average NBA players probably don't really care about protecting those few players' rights.

This made me think about just how risky it would be for Melo to actually go into the summer without a signed extension.

If Melo waits until this summer like he says he wants to, would he be risking not only a much lower salary, but also the possibility that Denver's leverage increases with new "franchise player" rights that don't currently exist?

Did Denver make a huge blunder when they told Melo this summer that if he didn't sign the extension they might have to trade him? If you say that, of course he's not going to sign. You just gave him his cake and let him eat it. Shouldn't they have just said the extension is there, take it or leave it, but there is absolutely no chance we will trade you?.....so if you want the guaranteed contract you have to sign with us.

The downside is obviously that if he isn't bluffing and he is willing to become a free agent you get nothing......but honestly, if your downside is that you lose out on 3 seasons of Galinari in exchange for one more season of Melo....is that really anything to worry about? Plus, aren't the chances at least decent that next summer, if Melo is a free agent, Denver will have better leverage?

I guess it could be broken down very simply:

Denver's potential downside from losing Melo for nothing was much smaller than Melo's potential downside from becoming a free agent this summer.

That put Denver in a great position in the staring contest this summer and my guess is that he would have eventually signed because becoming a free agent this summer is too risky...... but Denver blinked first

maybe they thought the trade proposals would be better than Galinari, maybe they underestimated the leverage they had, or maybe they just decided they didn't want him if he'd be unhappy....but they definitely blinked.