as anticipated Adrian Wojnarowski of ESPN and then ratified Shams Charania de The Athleticthe NBA and the NBPA have reached an agreement for a new collective agreement. Later, league and union confirmed the principle of agreement. This CBA It means an important step forward for both parties in order to maintain the coexistence between employers and unions that guarantees the viability of the competition in multiple aspects such as economics, sports, logistics and others.
The new collective agreement will last until 2030, that is, it has been renewed for seven more years. However, both parties have the option of unilaterally leaving the relationship one year before, in 2029as is usual in this type of case.
NBA and NBPA had been negotiating continuously since 2022 to reach an agreement and time was beginning to run out. with the danger of a lockout on the horizon, the deadline of Saturday April 1 has not been exceeded, thus signing a principle of agreement that will avoid a cataclysm for the league as were the lockouts of 1999 and 2012.
What does the new collective bargaining agreement between the NBA and NBPA mean?
The agreement for a new collective agreement between NBA and NBPA means the extension of peaceful coexistence between the two partners that make the league work such as the employers (owners) and the union (players).
Since the creation of the salary cap and the final application of free agency under the mandate of David Star These CBAs have served to establish the rules of the game, establish new economic agreements for the distribution of benefits or modify certain rules.
In this sense, the April 2023 agreement is positive news for the interests of both parties. On the one hand, the union and owners have avoided a lockout, that is, a lockout. This situation occurs when the CBA has concluded and there has been no agreement, in such a way that the activities and contacts stop, paralyzing the league from the competitive point of view and from the dispatches.
The new collective agreement guarantees 7 more years of viability between the two partners, both having the option to leave the agreement a year earlier.
What changes are there and what are the keys to the new NBA collective agreement?
In the absence of both parties ratifying the agreement officially, according to ESPN These are the changes:
- Introducing a tournament during the season: the idea of a cup in the style of European football had been on the table for a long time. This tournament will be implemented in the 2023-2024 season, which will consist of a series of matches during the month of November, of which the best 8 will pass in a single-match knockout draw. The semifinal and final will be played at a neutral venue with Las Vegas as the consensus venue for now. This will mean that the two teams that play in the final will play 83 Regular Phase matches, but they will also receive an extra financial pay ($500,000).
- Minimum of parties to opt for prizes: Both parties have agreed to set the minimum 65 games to be eligible to win an individual award such as MVP, Rookie of the Year, Defensive Player, etc. This seeks to lay a ground for potential candidacies.
- Limitations to the teams that spend the most: teams like the Clippers or Warriors with very high payrolls in salaries will not be able to access the mid-level exceptions for teams in luxury tax. The NBA is going to establish a second line of limit for the sets in the luxury that is established when exceeding 17.5 million dollars of the own salary cap. This is a compromise solution to the initial hard salary cap proposal that was discussed.
- New spending options at medium levels: In the absence of more details, this could mean new salary exceptions to sign free agents that are added to the current ones (mid-level, biannual, etc).
- Increased percentage of maximum salary in extensions: Until now, a player could sign a contract extension for 120% of his previous salary. With the new agreement this will rise to 140% depending on the awards and recognitions that that player achieves (All-NBA, All-Star, MVP, etc).
- Increase in contracts two-way: it will go from being able to have 2 to 3 players with a G League contract who can play in the NBA. This will offer more opportunities for teams to test youngsters.
The opinions expressed herein do not necessarily represent those of the NBA or its organizations.