What NBA Fans Need to Know About the Next Collective Bargaining Agreement
As the NBA season winds down, fans are already looking ahead to the next collective bargaining agreement. Here’s what you need to know.
The Current CBA
The current collective bargaining agreement between the National Basketball Association and the National Basketball Players Association will expire on June 30, 2021. The two sides have been meeting to negotiate a new CBA, but there has been little progress made. NBA commissioner Adam Silver said the league is prepared to offer the players a 50-50 split of basketball-related income, but the players are reportedly seeking a higher percentage.
What is the current CBA?
The current collective bargaining agreement (CBA) between the National Basketball Association (NBA) and the National Basketball Players Association (NBPA) was reached on November 26, 2011, and runs through the 2023–24 season. The parties can opt out of the agreement after the 2022–23 season. The CBA establishes the rules of player contracts, trades, salary cap, revenue sharing, drafts, drug testing, and many other aspects of NBA basketball.
How did it come about?
The current NBA Collective Bargaining Agreement (CBA) was agreed upon in 2017, between the National Basketball Association (NBA) and the National Basketball Players Association (NBPA). The primary purpose of the CBA is to establish ground rules and guidelines to govern interactions between the NBA and its players.
The CBA is a complex document that covers a variety of topics, including player salaries, benefits, draft rules, and revenue sharing. It is also responsible for setting the NBA’s age limit, which currently stands at 19 years old.
The 2017 CBA was the result of nearly two years of negotiations between the NBA and NBPA. The previous CBA, which was agreed upon in 2011, was set to expire on June 30th, 2017. If a new CBA had not been agreed upon by that date, the NBA would have undergone a work stoppage similar to the one that occurred in 2011.
What are the key provisions?
The NBA collective bargaining agreement (CBA) is a contractual agreement between the National Basketball Association (NBA) and the National Basketball Players Association (NBPA). The CBA defines the rules of players’ compensation, job security, free agency, and many other items relating to the league. It is a fundamental document that governs how the NBA operates.
The current CBA was ratified in 2017 and is set to expire in 2023. Let’s take a look at some of the key provisions:
– Players’ share of Basketball Related Income (BRI): In the current CBA, players receive 49-51% of BRI, depending on league revenue. BRI includes items such as ticket sales, television contracts, and merchandising.
– Luxury tax: A team that spends above a certain amount on player salaries (the “luxury tax threshold”) owes a “luxury tax” to the league. The luxury tax is used to fund revenue sharingamong teams.
– Salary cap: There is a salary “cap” that places an upper limit on how much a team can spend on player salaries. The salary cap for the 2020-21 season is $109.14 million.
– Mid-level exception: Teams can exceed the salary cap to sign free agents if they use one of several exceptions provided in the CBA. The mid-level exception allows teams to sign free agents for up to four years at a maximum salary of $9.72 million per year.
– Annual Free Agent Survivability: If a player has played for three or fewer seasons in the NBA, they are classified as an annual free agent and can be signed by any team without restriction. If a player has played for four or more seasons in the NBA, they become arestricted or unrestricted free agent depending on certain criteria set forth in the CBA
The Upcoming CBA
What are the key issues?
The National Basketball Association (NBA) and the National Basketball Players Association (NBPA) have been engaged in collective bargaining since the summer of 2017, when the two sides began negotiating a new collective bargaining agreement (CBA) to replace the current CBA, which will expire on June 30, 2021. The new CBA will cover the 2020-21 through 2029-30 NBA seasons.
The two sides have not yet reached an agreement on a new CBA, but the NBA has said that it is committed to reaching a deal that is fair to both the players and the league. The key issues that need to be addressed in the new CBA include:
– Revenue sharing: The NBA and NBPA are still negotiating how to divvy up revenue from things like TV rights deals, ticket sales, and sponsorships. Under the current CBA, players receive about 50% of all basketball-related income (BRI), but they are seeking a higher percentage in the new CBA.
– Salary cap: The NBA has proposed instituting a hard salary cap, which would limit how much each team could spend on player salaries. The NBPA has opposed this proposal, arguing that it would prevent players from getting their fair share of BRI.
– Player safety: The NBPA has raised concerns about player safety, specifically regarding the length of the season and the number of games played. They would like to see some changes made in order to protect players from overuse and injury.
– Free agency: There have been several changes to free agency rules over the course of the current CBA, and both sides would like to see further changes made in the new CBA. Specifically, they are negotiating over things like player movement restrictions and free agent compensation.
How will they be resolved?
The current CBA expires on June 30, 2022, and both the NBA and the National Basketball Players Association have the opt-out clause in the agreement that would allow them to end the deal two years early.
The key issues that need to be resolved are:
1. The percentage of Basketball Related Income (BRI) that players receive
2. The length of player contracts
3. The number of player optional contract years
4. The Mid-Level Exception and Luxury Tax levels
5. Restructuring the NBA Draft
What will the new CBA look like?
The current CBA expires on June 30th, 2021, and both the Players Association and the NBA have already begun preparations for the next round of negotiations. While it’s still too early to say definitively what the new agreement will look like, there are a few key issues that are likely to be at the forefront of the discussion.
One of the most important issues will be the NBA’s so-called “one-and-done” rule, which requires players to be at least 19 years old or one year removed from high school before they are eligible to be drafted. The Players Association has been pushing for an end to this rule for years, and it seems likely that they will continue to do so in the upcoming negotiations.
Another issue that is sure to be on the table is player salaries. Under the current CBA, maximum salaries are capped at a certain percentage of the league’s overall revenue, and players have been seeking to increase that percentage in recent years. Given the massive increase in revenue that the NBA has seen in recent years (thanks in part to massive television contracts), it seems likely that players will be successful in this endeavour.
Finally, it’s worth mentioning that there is a growing movement among some NBA players to form a union separate from the Players Association. While it’s still unclear how much support this movement has among all NBA players, it could potentially have a major impact on negotiations if enough players decide to back it.
At this point, it’s impossible to say exactly what shape the new CBA will take. However, these are some of the key issues that are likely to be at the forefront of discussion when negotiation begin in earnest later this year.
The Impact on NBA Fans
How will the new CBA affect ticket prices?
One of the most contentious issues between the NBA and its players has been the split of basketball-related income, with the league’s owners seeking a greater percentage. Under the new collective bargaining agreement, players will receive 49 to 51 percent of basketball-related income, depending on league revenue.
With the previous CBA, players were guaranteed to receive 57 percent of basketball-related income. If league revenue fell below certain projections, that percentage would decrease. The new CBA includes trigger points that would allow the percentage to increase if league revenue falls below projections, but it is unlikely that the players will ever receive more than 51 percent under the new agreement.
How will the new CBA affect player salaries?
It is estimated that the average player salary will increase from $5.15 million to around $7 million, with a maximum salary of about $12 million. Rookie salaries will also increase, but not as dramatically. The minimum salary for rookies will increase from $473,604 to $582,180, and their maximum salary will increase from $884,293 to $1,319,057.
How will the new CBA affect the length of the season?
The new CBA will shorten the NBA season from 82 games to 78 games, starting with the 2021-2022 season. This will allow players to have more rest and recovery time between games, and should help reduce injuries. The regular season will still be split into two halves, with each team playing 41 games in each half. The playoffs will also be shortened, with the first round being best-of-three instead of best-of-seven.
