Details On New Collective Bargaining Agreement

The NBA and the NBPA have agreed in principle to a new seven-year Collective Bargaining Agreement, according to a league press release. The league also announced that both parties have agreed to extend the mutual deadline to opt out of the current CBA from December 15, 2016 to January 13, 2017 in order to give both sides enough time to review the terms of the agreement and vote on them. Details of the agreement are trickling out. Here’s the latest:

9:42pm: 

  • Luxury tax penalties will be “softened” for some teams and trade rules will be “liberalized,” according to Sports Illustrated. Free agency terms will become more favorable for players in general with fewer restrictions on first-round picks and a shorter moratorium.
  • A “comprehensive” program to deal with domestic violence, sexual assault and child abuse will be established. The program will offer resources for players and their families. It will also contain a defined process for investigations.

9:10pm:

  • In regards to the designated player rule for veteran extensions, only players who meet certain performance criteria, such as All-NBA team appearances, will be eligible for an extension, Zach Lowe of ESPN.com reports (Twitter links). Lowe adds that the first year of a players extension can be worth up to 35% of the salary cap regardless of whether the team has the cap room or not.
  • Teams will not be able to give a six-year extension to a player it just traded for, Tim Bontemps of The Washington Post relays (Twitter link).
  • The window for teams to match offers during restricted free agency will be reduced from three days to two days, Stein tweets.

8:00pm:

  • The 36-and-over rule, which removes the incentive for teams to sign players to long-term deals if their 36th birthday falls during the life of the deal, has been altered to a 38-and-under rule, sources tell Wojnarowski.

7:33pm:

  • The deal is for seven years, but contains an opt-out after the sixth season, David Aldridge of NBA.com tweets.
  • Minimum salaries will rise by about 45% beginning in the 2017/18 season, Scott Soshnick Of Bloomberg reports. The average player salary will also grow to $8.5MM, which is up from $5MM, and retired players are expected to get better benefits than in previous deals.
  • The split in BRI is expected to be roughly the same as it was in the previous CBA with the players receiving 51%, Soshnick adds.
  • Teams will be allowed to expand rosters by at least one and at most two players if additional players are sent to the D-League, Soshnick reports. These additional roster spots would be for the highly anticipated two-way contracts between the NBA and the D-League.
  • The players union will take control of group marketing rights, Soshnick adds.
  • The players union and the league will form a committee to decide how the NBA will use wearable technology and the data it produces, Soshnick relays.
  • Teams will now be able to choose a designated veteran for a lengthy new contract, similar to how teams can use the designation player rookie extensions, Marc Stein of ESPN.com tweets. Extensions could  include up to six seasons once the player is entering the final year of his current deal.
  • The league will shorten the preseason to a maximum of six games and start the regular season a week sooner in an effort to spread out games, Adrian Wojnarowski of The Vertical reports (Twitter link).
  • The league will keep the one-and-done draft rule for now, but the players union and the league will continue to research the issue and possibly change the rule during the life of the new CBA, Wojnarowski adds (Twitter link). Neither side is committed to keeping the rule, but the parties decided to table the issue for now.
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3 thoughts on “Details On New Collective Bargaining Agreement

  1. hill

    Sounds like a lot of really good work.

    I love the changes to pre-season and the earlier season start…hope that leads to fewer back-to-backs and 3 games-4nights situations.

    And interestingly even with sky-rocketing salaries Miles Plumlee will be earning $4.5 million per year MORE than the NBA average.

    #WhoDidHeBlow

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  2. formerlyz

    The expanded roster rule will be really interesting, in my opinion, and definitely favors teams that have done a good job of finding undrafted or D-League type guys, and developing them

    The RFA rule should also be interesting. Theoretically, the new extension rules might prevent some guys from getting there, which benefits the incumbent team, but I also like the 1 less day to decide to match, so teams might not be as wary of signing an offer sheet, and holding up their cap room, while other free agents sign, and it could cause some teams to lose their RFAs

    I am curious about what it means by luxury tax penalties being softened. Before I see what that entails, I like that it would theoretically allow teams to not be as worried about getting into the luxury tax to build the best team possible and keep their players. Anything that takes away an incentive to not spend money is good. That being said, it feels like that is specifically in there b/c of Cleveland, which is annoying, considering how hypocritical it seems after Dan Gilbert made such a big deal last time about how unfair big market teams are, and super teams, and all of that, and how there were added penalties last time. Now that he is as far as he is into the tax, they alleviate some of those penalties?

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    • formerlyz

      ….I also want to add that I like that this deal seems a lot better for the players than last time. Last time, I thought they took a pretty big hit, when they had to give up that 7% in BRI, and even though they dont get any of that back, there are other benefits for them

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