The National Basketball Association (NBA) and the National Basketball Players Association (NBPA) have reached a new collective bargaining agreement (CBA) that will govern league operations for the next seven years. The deal includes several significant changes to the league’s structure, including the addition of an in-season tournament, altered trade and free agency rules, and an increase in veteran contract extensions.
New Deal Includes In-Season Tournament
One of the most significant changes in the new CBA is the inclusion of an in-season tournament. The long-rumored tournament could begin as early as next season, with pool-play games added to the regular-season schedule starting in November. Eight teams would advance to a single-elimination tournament in December, with each game counting toward regular-season standings. The two finalists would ultimately play 83 regular-season games. Winning players and coaches would receive additional prize money.
Restrictions on Veteran Contract Extensions Loosened
The new CBA also includes looser restrictions on veteran contract extensions. Under the previous CBA, players were limited to a 120% increase on their current deals when signing an extension. The new deal increases that limit to 140%, giving teams more flexibility when negotiating with veteran players.
Changes to Trade and Free Agency Rules
Trade and free agency rules will be altered under the new CBA as well, with expanded opportunities for mid and smaller team payrolls. The league is curbing the ability of the highest-spending teams to continue running up salary and luxury tax spending by setting a second salary cap apron of $17.5 million over the current apron.
Marijuana Use No Longer Prohibited
In another significant move, players will no longer be prohibited from using marijuana. While the league has not formally tested for the substance since the 2019-20 season, the new CBA formally removes it from the league’s anti-drug testing program.
More Twoway Contract Slots and A New National Media Rights Deal
The NBA is also allowing teams three twoway contract slots to bolster the lower reaches of their roster, up from the current limit of two. Moreover, with the new CBA in place, the NBA can now focus on securing a new national media rights deal before the current one expires at the end of the 2024-25 season. A new television deal is expected to earn three times as much as the $24 billion earned in the last deal.
Moving Forward Without Risk of a Lockout
The NBA will continue playing basketball without the risk of a lockout as both sides will be risking billions of dollars by failing to secure a deal. The new collective bargaining agreement will start with the 2023-2024 season, aimed at creating more spending and trade opportunities for teams at different ends of spending. It is also important to note that both sides extended negotiations for a limited period because they were close to an agreement.
Conclusion
In conclusion, the NBA and NBPA have agreed upon a new collective bargaining agreement that includes an in-season tournament, looser restrictions on veteran contract extensions, changes to trade and free agency rules, and approval for players to use marijuana. The NBA will continue playing basketball without risking billions of dollars by failing to secure a deal. With this new CBA in place, many stakeholders are looking forward to what it means for the future outlook of basketball in America.
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