After a new agreement between the National Basketball Players Association and the NBA, players will receive an insurance allowance of $ 2.5 million in the event of a career-ending injury, according to ESPN.
The NBPA was pushing for an increase in the permanent disability policy that had previously paid about $ 312,000 in these cases. The insurance covers career-ending injuries suffered on and off the pitch, including complications from Covid-19, sources said.
The payment would be in addition to the money owed on the contracts and would include all active players up to 35 years old, sources said.
The NBPA and the NBA have also agreed to continue keeping the players’ salary withholding tax on 25%, sources said.
The NBA had started to withhold 25 percent of the residual salary on May 15 and had the right to adjust this percentage based on the number of matches resumed or canceled left in the 2019-2020 season.
A final adjustment on the percentage of salary that the league could request under the Force Majeure clause in the collective bargaining agreement will come once the basketball earnings audit is completed by the end of the summer. Players receive 51 percent of the BRI.
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