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NBA collective bargaining agreement

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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]

Salary cap

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Main article: NBA salary cap

Roster size

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See also: Injured reserve list

A team may have a maximum of 15 players on its active roster, and at least eight active players must suit up for every game. Any remaining players are placed in the Inactive List, and cannot play in games.[11][12] Teams may have a maximum of two players on the Inactive List; this can drop to zero for up to two weeks at a time, and additional, temporary inactive positions may be added with league approval in hardship cases. The Inactive List can change up to 60 minutes before opening tip by informing the official scorer of the game. A player can be inactive for as little as one game.[12] Players sent to the NBA G League will continue to count on a team's inactive list.[13][14] While individual teams must carry a minimum of 13 (12 active plus one inactive) players, the NBA guarantees a league-wide average of at least 14 players per team. The league is surcharged if they do not meet the average.[12]

Prior to the 2005 CBA, injured players could be placed on an injured list but were forced to sit out a minimum of five games.[13]

The NBA's 2011 CBA proposal reportedly included an "amnesty clause" – a one-time opportunity for teams to remove their worst contracts from the books.[15]

Trades

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Players can be traded between teams in exchange for other players, draft picks and/or a limited amount of cash. Coaches may only be traded for draft picks or cash. Trades are not allowed to be contingent on the completion of other trades.[16] Under the current CBA, a team cannot expend nor receive more than $5.617 million in trades in a given season.[17]

See also

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References

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  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".
  11. ^ Sheridan, Chris. "Breaking news: 13-man NBA rosters to become permanent; Waiver rules could be altered". sheridanhoops.com. Retrieved November 11, 2012.
  12. ^ a b c Coon, Larry. "NBA Salary Cap FAQ". cbafaq.com. Retrieved December 29, 2011.
  13. ^ a b "Inactive vs. Active List Rules". NBA. November 1, 2005. Retrieved November 5, 2010. Now, the active and inactive list can be set on a game-by-game basis, one hour before tip-off, with no length of stay required for either list.
  14. ^ "CBA Principal Deal Points". NBA. August 4, 2005. Retrieved November 5, 2010. Teams may have a maximum of three players on their inactive list (subject to hardship rules, which will apply in the event that a team with three injured players on its inactive list has a fourth player that suffers an injury).
  15. ^ "The NBA CBA, Amnesty Rule and the League's Worst Contracts". Charlie Zegers. August 2, 2011. Retrieved October 24, 2013.
  16. ^ Stein, Marc; Shelburne, Ramona (June 20, 2013). "Sources: Clips-Celtics talks back on". ESPN.com. Archived from the original on June 22, 2013. Retrieved June 21, 2013.
  17. ^ NBA Trade Rules Overview - CBA Breakdown. Limits on cash transfers
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