NBA collective bargaining agreement

National Basketball Association
labor relations

The collective bargaining agreement (CBA) of the National Basketball Association (NBA) is a contract between the league (the commissioner and the 30 team owners) and the National Basketball Players Association (NBPA), the players' union, that dictates the rules of player contracts, trades, revenue distribution, the NBA draft, and the salary cap, among other things. In June 2005, the NBA's 1999 CBA expired, meaning the League and the players' union had to negotiate a new agreement; in light of the 2004–05 NHL lockout, the two sides quickly came to an agreement, and ratified a new CBA in July 2005. This agreement expired following the 2010–11 season, leading to the 2011 NBA lockout. A new CBA was ratified in December 2011, ending the lockout.[1]

Little changed in terms of the salary cap between the 1999 and 2005 versions of the CBA. In exchange for agreeing to the controversial player age minimum, the players received a slightly higher percentage of the League's revenues over the course of the new agreement. Additionally, the League's maximum salary decreased slightly in comparison to the 1999 CBA. Under the 2011 CBA, the players received a lower percentage of league revenues.

In 2005, players received 57% of the income, and as of the 2016 CBA, they are receiving about 49–51% of revenue.[2] At that time, the next CBA discussion was set for ten years to 2017.[3] In 2016, the NBA and NBA Players Association met to work on a new CBA, which both sides approved in December of that year. This most recent agreement started with the 2017–18 season and runs through 2023–24, with a mutual opt-out after 2022–23.[4][5] Either side had to give notice by December 15, 2022, if their decision was to opt out following 2022-23, but in December 2022 agreement was reached to extend that deadline to February 8, 2023.[6][7] By April 26, 2023, the NBA and the CBA came to an agreement.The players voted to ratify this new agreement which would go into effect July 1, 2023, and would last until the 2029-30 season.[8] The 2016 CBA funds health insurance for retired players, and increased benefits for current players, including a tuition reimbursement fund co-funded by the union and by the league.

  • Creation of “two-way” contracts that will pay players who shuttle between their NBA and NBA G League teams.
  • A new “designated veteran player exception” has been created, adding a sixth year for players on veteran contracts who meet certain criteria.
  • A shorter preseason, with no more than six exhibition games before the start of the regular season and an earlier start to the regular season.[9][10]
  1. ^ "Players, owners approve agreement". ESPN.com. ESPN Internet Ventures. December 8, 2011.
  2. ^ "The NBA has a new CBA. Here's what you need to know about it - SBNation.com". December 14, 2016.
  3. ^ Coon, Larry (November 28, 2011). "Breaking down changes in new CBA". ESPN. Retrieved September 25, 2013.
  4. ^ Wojnarowski, Adrian (October 24, 2016). "CBA could extend seven years with a mutual opt-out in six years". Retrieved October 24, 2016.
  5. ^ "NBA, players ratify new collective bargaining agreement" (Press release). NBA. December 23, 2016. Retrieved December 28, 2016.
  6. ^ Wojnarowski, Adrian (December 9, 2022). "NBA, players' union agree to extend opt-out deadline for CBA, sources say". ABC News. Retrieved December 9, 2022.
  7. ^ "NBA, NBPA agree to extend deadline to opt-out of current CBA". National Basketball Association. December 14, 2022. Retrieved December 15, 2022.
  8. ^ "NBA, union ratify new CBA; goes into effect July 1". ESPN.com. April 26, 2023. Retrieved April 27, 2023.
  9. ^ "NBA, NBPA reach tentative seven-year CBA agreement | NBA.com". NBA.com.
  10. ^ "Designated Extensions and Other Changes in CBA | Basketball Insiders | NBA Rumors And Basketball News".