National Basketball Players Association

Force Majeure Provision Opens Window To New CBA

The COVID-19 pandemic has drastically impacted the 2019/20 NBA season and it could have a lasting effect on the financial structure of the league.

The “force majeure” provision in the latest CBA covers a variety of catastrophic circumstances, including epidemics and pandemics, and it calls for players to lose approximately one percent of their salary per canceled game. It’s automatically triggered once games are canceled, though the league has simply “suspended” the season at this point.

Adrian Wojnarowski of ESPN.com reports that if the force majeure provision is triggered, the league has the ability to re-open and renegotiate the current Collective Bargaining Agreement, which runs through 2025. There have been no conversations yet between the NBA and the Players Association about utilizing this feature.

The league and the union are discussing withholding 25% of players’ remaining salaries in an escrow in the event that the remainder of the regular season is canceled, per Wojnarowski. If no agreement is reached on withholding players salaries beginning on April 15, players would continue to be paid in full and would be required to pay back a portion of their salaries down the road if games are canceled.

Under the current CBA, the league holds 10% of players’ salaries in escrow and returns it to them at the end of the season. However, the amount of projected revenue lost for the 2019/20 season exceeds the $380MM that the league has in escrow, so players and teams will likely attempt to work out an arrangement to mitigate those losses.

Another variable is how players get paid. Around 10% of players including LeBron James, are paid their full salary in 12 installments between November 15 and May 1. The overwhelming majority of players receive their income spread out over a full year – November 15 to November 1 – though some players receive larger installments as part of the payout structure. The NBA doesn’t want a scenario where it has to chase down players to recoup payment.

The league, as Woj adds, is hopeful that it can resume part of the regular season before entering the postseason. It has no plan to announce the cancellation of the season, preferring to continue to look for ways to salvage the campaign.

NBPA Aligned With NBA On Goal Of Saving Season

The NBA suspended the season earlier this month amid the coronavirus pandemic. Nobody wants the season to be canceled, with NBPA executive director Michele Roberts telling Mark Medina of USA Today that the union is aligned with the league in trying to save the season.

“If you look at our CBA, there is some troubling language if you are a player,” said Roberts. “I’m a lawyer by training and the concept of a ‘force majeure’ is common in any contract. … No matter what differences we may have in the league in the past or going forward, we’re actively on the same page about trying to save our season and trying to save our playoffs.”

The NBA’s Board of Governors met with former U.S. Surgeon General Vivej Murthy earlier today and the stakeholders left the meeting with feelings of optimism that the season will resume before July, Adrian Wojnarowski of ESPN.com reports (Twitter link).

“The revenue consequences are significant,” Roberts continued. “Sure, there is language that allows the league to enforce what they perceive to be a ‘force majeure’ and that would have an impact on compensation for players going forward. But if it happens, there would be a recognition the league is prepared to lose tens of millions of dollars. If we can’t play games or we can’t have our playoffs, we’re going to have an economic hit.”

Robert was asked if the conversations with the NBA have been more about trying to save the season than invoking any clause that would alleviate the owners’ financial burden.

“That’s right on the money,” she said. “We want to play games and we want to do it in a way that’s safe. …It’s very difficult to say by ‘X date,’ we’re going to resume the games. That would be foolish. But we’re not throwing in the towel.”

NBA, NBPA Agree To Halt Drug Testing During Hiatus

The NBA and the National Basketball Players Association have reached an agreement to halt drug testing for players during the league’s current coronavirus-related hiatus, reports Chris Haynes of Yahoo Sports. Sources tell Haynes that the agreement is temporary.

Players are typically subject to up to four random drug tests during the season and two more during the offseason, per the league’s Collective Bargaining Agreement.

Punishments, including lengthy suspensions or banishments, are severe for players who test positive for performance-enhancing drugs or drugs of abuse, while testing positive for marijuana use results in more modest discipline, starting with fines.

According to Ian Begley of SNY.tv (Twitter link), the pause on drug testing is meant to address concerns regarding the proximity of drug testers and the sensitivity of drawing blood during the coronavirus outbreak.

Hiatus Notes: Resuming The Season, NBPA, Kirkland

The odds are against the NBA being able to resume its season and crown a champion, writes Brad Townsend of The Dallas Morning News. Commissioner Adam Silver has said the league will be shut down for at least 30 days in an attempt to stem the spread of the virus. However, with three positive tests already reported and many more possibly looming, the stoppage could go on for much longer.

League sources tell Townsend that if any players, coaches or other personnel test positive for the virus, a 14-day quarantine will be imposed for the affected team. However, to keep conditions equal, all 29 other teams will have to stop training as well. With more than 500 players, including those on two-way deals, along with 150 coaches and countless staff members, a quick resolution appears very unlikely.

A league official informed Townsend that pessimism is increasing about the fate of the season, saying, “There are no shortcuts here. Everything has to fall into place. And there are so many variables that can’t be predicted.”

There’s more as the NBA sits idle:

  • The National Basketball Players Association sent a message to agents saying they “fully expect that players will continue to receive salary on their designated paydays” during the hiatus, tweets Shams Charania of The Athletic. Sources tell Charania that the union hasn’t discussed potential adjustments to salaries and doesn’t expect that to happen until decisions are made about the schedule (Twitter link).
  • Referee Courtney Kirkland has been cleared to leave Sacramento after his coronavirus test was negative, tweets Eric Woodyard of ESPN. Kirkland had remained in the city since Wednesday’s game between the Kings and Pelicans was postponed. He is free to resume all activities and will have no medical restrictions, Woodyard adds.
  • The NBA should have moved more quickly to suspend its season, contends Ethan Strauss of The Athletic. Noting that each person with coronavirus infects an estimated 2.8 other people, Strauss argues that the league had a responsibility to be more proactive once cases of the virus started hitting major North American cities. He criticizes the league for holding two games at Chase Center in San Francisco with a sign in the arena that stated, “Attending tonight’s game could increase your risk of contracting coronavirus.”

NBA, NBPA Plan On Moratorium For Roster Moves, Contracts

The NBA and the National Basketball Players Association plan to enter an agreement on a moratorium period while the NBA season is suspended, according to Shams Charania of The Athletic (Twitter link).

Similar to the July moratorium, this period would freeze moves such as free agent signings and trades (not that trades would be permitted anyway at this time of year). As Charania explains, it would also prohibit action on player and team options, and would freeze 10-day contracts.

According to Charania (via Twitter), the preliminary timeline for the moratorium period is expected to be March 12 through April 10. That timeline would be reassessed as April 10 approaches.

Postponing the actual scheduled games only represents part of the logistical challenge facing the NBA during its hiatus. There are a number of contract- and CBA-related questions that must be answered in the coming days and weeks, especially if the league ultimately intends to push the 2019/20 league year beyond June 30.

John Hollinger of The Athletic discussed a handful of these questions in a Thursday article, pointing to 10-day contracts, incentive bonuses, option and salary guarantee deadlines, and contracts that expire on July 1 (for both players and coaches) as issues that must be addressed. As Bobby Marks of ESPN and Eric Pincus of Bleacher Report note (via Twitter), the NBA and NBPA would have to come to an agreement on what changes will be made if the end of the season is pushed into July or August.

Hollinger, Marks, and others have also pointed out that the league’s Collective Bargaining Agreement includes “force majeure” language in the event that games are canceled for reasons outside of the NBA’s control, such as an epidemic. Theoretically, the league and its owners could trigger that provision and could aim to recoup 1/92.6th of players’ salaries for each lost regular season game.

ESPN’s Adrian Wojnarowski writes that players have been made aware of that force majeure clause, but there have been no discussions between the league and the union so far about the provision, since there’s still a belief the season can just be postponed rather than canceled. According to Charania, players will receive their next check in full on March 15.

And-Ones: NBPA, Felton, Crabbe, Hunter

The National Basketball Players Association is set to begin its search for a successor to current executive director Michele Roberts, the NBPA’s executive committee announced today in a press release. Roberts, who has been the union’s executive director since 2014, won’t be seeking a contract extension beyond her current deal.

“For the past six years, I have greatly enjoyed and continue to enjoy leading the NBPA and am proud of all we have been able to accomplish,” Roberts said in a statement. “When I agreed to a second contract as Executive Director, I made clear that I would not be seeking a third. The Executive Committee and I are committed to making certain my successor is thoroughly prepared to assume the position upon my departure from the NBPA and continue its sustained path for growth.”

Roberts played a key role in the negotiations on the 2017 Collective Bargaining Agreement between the NBA and the players’ union. Both sides will have the ability to opt out of the ’17 agreement after the 2022/23 season, at which time a new executive director will be leading negotiations for the NBPA’s side.

Here are more odds and ends from around the basketball world:

  • Veteran NBA guard Raymond Felton is expected to join Jindrichuv Hradec, a team in the Czech Republic, for the end of the season, as Emiliano Carchia of Sportando relays. It’s an unusual landing spot for Felton, but he has a connection to coach Gilbert Abraham, as GM Radek Novak explained in a statement.
  • Allen Crabbe has reached a plea deal in his DUI case, as Dan Feldman of NBC Sports details. The veteran swingman, who is now a free agent after being bought out by the Timberwolves, should avoid the NBA suspension that would come with a drunk-driving conviction, Feldman notes.
  • After playing in Turkey earlier this season, former first-round pick R.J. Hunter has returned stateside and is a member of the Hawks‘ G League team in College Park as he seeks an NBA comeback. Zach Koons of The Atlanta Journal-Constitution has the story and the quotes from Hunter.

Kyrie Irving Elected As NBPA Vice President

Nets guard Kyrie Irving was elected to the executive committee of the National Basketball Players Association (NBPA) today, replacing Pau Gasol as one of the union’s vice presidents, per an official release. Gasol’s three-year term as VP had expired.

“This was the right time for me to run for a leadership position in the NBPA,” Irving said in a statement. “I have been an observer and a participant in union affairs for a while, but for the most part, I was off on the sidelines, supporting our Executive Committee as they made important decisions. At this point in my career, I wanted to join forces with those guys and take a bigger role outside of the basketball court and within our union.

“I want to help move the union forward with innovative ideas, not only on social issues but also with business ventures into a new space. I am honored to be elected by my peers and I cannot wait to work with everybody to make an impact.”

Irving will join an executive committee led by union president Chris Paul and first vice president Andre Iguodala. The Nets star will be one of six NBPA VPs, along with Bismack Biyombo, Malcolm Brogdon, Jaylen Brown, CJ McCollum, and teammate Garrett Temple.

Irving, who has missed Brooklyn’s last five games with a knee injury, is believed to be nearing a return, though the team has yet to announce whether or not that will happen this Thursday in Philadelphia.

NBPA Appeals Dion Waiters’ Latest Suspension

For a third time this season, the National Basketball Players Association is appealing a Dion Waiters suspension, according to Ira Winderman of The South Florida Sun Sentinel.

As Winderman explains, the NBPA’s appeal isn’t intended to reduce Waiters’ current six-game suspension or get him on the court any faster. The union’s goal is to recoup some or all of the salary the Heat guard has lost as a result of the ban.

The NBPA filed similar appeals following Waiters’ one-game and 10-game suspensions earlier this season, as we relayed last month. In total, the three suspensions have sidelined Waiters for 17 games and have reduced his 2019/20 salary by $1.419MM. Additionally, because he won’t appear in at least 70 games, Waiters has missed out on a $1.2MM bonus, though that lost bonus hasn’t been appealed by the players’ union, per Winderman.

The appeals, which could be heard individually or concurrently, are unlikely to happen anytime in the near future, according to Winderman, who notes that the NBPA hasn’t asked to expedite the appeals. They’ll likely happen a few months from now, and may result in Waiters’ camp and the Heat reaching a settlement brokered by the union, Winderman writes.

Although the appeals will determine how much salary Waiters ultimately loses, they’ll have no impact on the Heat’s salary cap or tax situation, since all three suspensions have been issued by the team rather than the league.

Waiters’ current six-game ban runs through December 23, so he’ll be eligible to return on December 27 when the Heat host the Pacers. Still, considering the veteran guard has yet to play this season and the club is reportedly exploring options to get rid of him, it seems increasingly unlikely that he’ll see any action for Miami this season.

NBA G League Players Discuss Unionizing

Players in the NBA G League are having serious discussions with the National Basketball Players Association about the possibility of unionizing, according to reports from Shams Charania of The Athletic and Adrian Wojnarowski of ESPN.

Charania and Wojnarowski note that those conversations are expected to continue at this season’s G League Winter Showcase, which will take place from December 19-22 in Las Vegas. The goal would be to work toward collectively bargaining items like salaries, benefits, and travel, sources tell Woj. More freedom of player movement might also be a priority, says Charania. Currently, G League players not on assignment from an NBA team make $35K per season.

Assuming this week’s talks go well, a G League players union will likely be ratified following the Winter Showcase, when a formal vote takes place. For their part, the NBA and the G League have been made aware of the discussions and say they plan to work with the newly-formed union if and when it’s ratified, per Wojnarowski.

“We support the players’ right to unionize,” NBAGL president Shareef Abdur-Rahim said in a statement. “We view this as a positive thing and are looking to continue to grow our league for the players to develop and accomplish their dreams.”

The unionization of G League players has been viewed as “inevitable,” with team and league officials preparing for the possibility for the last several years, writes Charania. Still, it’s not clear how significant an impact a players’ union might have on the NBAGL’s current structure.

“Travel, housing, a little more money — it’ll be about small gains,” one G League general manager told Charania. “The G League probably doesn’t generate enough revenue for wholesale changes unless we tap into the NBA’s BRI (basketball related income), but unionizing can be a start.”

NBA In Talks To Alter Seeding, Schedule And Playoff Play-In

Serious discussions between the NBA, National Basketball Players Association and broadcast partners could see an altered league with changes to the league’s schedule, reseeding of four conference finalists, a postseason play-in and a 30-team in-season tournament, ESPN’s Zach Lowe and Adrian Wojnarowski report.

As the discussions progress, the hope is to bring a vote to the annual April meeting of the NBA’s Board of Governors which could include most, if not all, of the proposals, per ESPN’s report. The goal would be for these changes to take effect for the 2021/22 season, the NBA’s 75th anniversary.

For starters, the proposal would include a reduction in the schedule from 82 games to a minimum of 78 games, Lowe and Wojnarowski report. There would exist a remote possibility of teams possibly playing a maximum of 83 games given various tournament and play-in scenarios, sources told ESPN.

In regards to the in-season tournament, the league is looking at 30-team participation that begins with a divisional group stage of already scheduled regular-season contests.  Coming out of the tournament would be six divisional winners based on the best home and away records in the group stage, according the report. Teams with the next best two records advance to a single-elimination knockout round under the current proposal.

NBA commissioner Adam Silver has been a major proponent of the in-season tournament, modeling it after European soccer. Silver explained to the New York Times’ Marc Stein in late May that he was examining various scenarios to alter the league.

“It’s incumbent on me to constantly be looking at other organizations and seeing what it is we can do better and learn from them,” Silver told Stein. “In the case of European soccer, I think there is something we can learn from them.

“I also recognize I’m up against some of the traditionalists who say no one will care about that other competition, that other trophy, you create. And my response to that is, ‘Organizations have the ability to create new traditions.’ It won’t happen overnight.”

As far as the postseason play-in, Wojnarowski and Lowe write that two four-team tournaments would transpire with the seventh, eighth, ninth and 10th seeds in each respective conference. The seventh would host the eighth seed with the victor taking seventh seed honors. The same would apply for the ninth and 10th seed, with the winner in each respective conference earning the final playoff spots.

While the baseline ideas are being discussed, other things that will need to be ironed out. How players and coaches are compensated for the changed schedule, how television partners would be impacted with changed schedules and more. However, there’s some traction to potentially change the landscape of the NBA for the 2021/22 campaign.