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NBA And Players Association Reach Agreement On New CBA

By Pete Camarillo
Published on: 16:07 PST, Dec 14, 2016

The NBA and NBA Players Association agreed on tentative terms for a new collective bargaining agreement, per Wednesday’s joint press release.

The agreement has to be ratified by players and team owners, but that is a formality per The Vertical.

Ratification requires a simple majority vote owners and a simple majority vote from players, according to the USA Today.

Additionally, the NBA and NBAPA agreed to extend the deadline to opt-out of the existing CBA from Dec. 15, 2016 to Jan. 13, 2017, according to The Vertical’s Adrian Wojnarowski. This allows for both sides to read the details of the tentative agreement.

Further, Wojnarowski reported that the new CBA is for seven years. The previous 10-year agreement was struck in 2011, but it included opt-out clauses for both sides. Those could have been exercised this year.

Still, both sides reached the deal before a work stoppage became a reality in June. The league had lockouts that resulted in the loss of games during the 2011 and 1998 seasons.

Nonetheless, the new deal would give the league a run of 13 consecutive seasons without a lockout as it ensures labor peace through the 2023-2024 season. Both sides have mutual opt-out clauses in 2022 per multiple reports.

Negotiations for the new collective bargaining agreement were intense, according to multiple reports.

NBA‘s David Aldridge called it a culmination of work between NBA Commissioner Adam Silver and NBAPA Executive Director Michele Roberts.

ESPN’s Marc Stein reported that sides would sometimes meet multiple times a day. Stein cited potential holdups on the deal such as control over players’ likeness.

Luckily, the deal got done before the opt-out deadline. The two sides were very close to a deal for some time, according to the ESPN article.

Here are some reported terms of the new deal via multiple sources:

  • Aldridge reported that the value of the rookie-scale, mid-level exception and bi-annual exception will all increase in value.
  • The league’s 36-and-over rule, which previously prevented players from signing contracts if their 36th birthday occurred within the lifespan of a contract, was revised. The age limit was bumped up to 38 years, per the same article.
  • Also, the expected maximum salary in 2017-18 for a player with 10 or more year’s service will be $36 million. Aldridge reported that players like LeBron James and Chris Paul, who can both become free agents after this season, are eligible to sign a five-year, $210 million contract with their existing team via the new CBA.
  • There is also the creation of contracts that will allow players to bounce between NBA rosters and Development League teams. NBA teams will get additional 16th and 17th roster spots for those players to bounce between the rosters. Those players will also receive more money to keep them from going overseas, according to Aldridge.
  • Nonetheless, the rule that requires players to play a year of college basketball before declaring for the NBA Draft will stay. Multiple sources report that the league and union will continue discussing alternatives to this rule.
  • Additionally, current players will get increased benefits including tuition reimbursement, per Aldridge.
  • The preseason will be shortened to no more than six exhibition games. This should reduce back to back games, according to Aldridge.
  • Wojnarowski cited sources who said the that the new CBA raises the average NBA annual salary to about $8.5 million, via Bleacher Report.
  • Moreover, the deal includes no change in the Basketball Related Income split of 50-50 between the NBA and NBAPA. The salary cap and luxury-tax will also stay the same, per Wojnarowski’s sources.
  • Further, a new designation allows teams to add a sixth year for players on veteran contracts who meet certain standards. Wojnarowski wrote that this designation could allow Russell Westbrook and Paul George to re-sign with their current teams for the next six seasons this summer. Hence, players would get more guaranteed money to stay on their current teams, which will prevent them from testing free agency.
  • Added, pensions will increase by nearly 50 percent and payouts to retirees will begin at age 50, according to Wojnarowski. Plus, the NBA and the union will deliver health insurance for every player with three-plus years of service beginning Jan. 1.
  • The new CBA will also create a program targeted at domestic violence, child abuse, and sexual assault that will include education, resources, support, treatment and counseling for players and families, per the USA Today

Stay posted for more NBA rumors and reports surrounding the new CBA. More details should get released before the deal becomes official.

Either way, it is great news that the NBA will not stop playing games anytime soon.

[Featured Image by Frank Franklin II/AP Images]

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