NBA Collective Bargaining Agreement

Last updated

The NBA Collective Bargaining Agreement (CBA) is a contract between the National Basketball Association (NBA) (the commissioner and the 30 team owners) and the National Basketball Players Association (NBPA), the players' union, that dictates the rules of player contracts, trades, revenue distribution, the NBA draft, and the salary cap, among other things. In June 2005, the NBA's 1999 CBA expired, meaning the League and the players' union had to negotiate a new agreement; in light of the 2004–05 NHL lockout, the two sides quickly came to an agreement, and ratified a new CBA in July 2005. This agreement expired following the 2010–11 season, leading to the 2011 NBA lockout. A new CBA was ratified in December 2011, ending the lockout. [1]

Contents

Little changed in terms of the salary cap between the 1999 and 2005 versions of the CBA. In exchange for agreeing to the controversial player age minimum, the players received a slightly higher percentage of the League's revenues over the course of the new agreement. Additionally, the League's maximum salary decreased slightly in comparison to the 1999 CBA. Under the 2011 CBA, the players received a lower percentage of league revenues.

In 2005, players received 57% of the income, and as of the 2016 CBA, they are receiving about 49–51% of revenue. [2] At that time, the next CBA discussion was set for ten years to 2017. [3] In 2016, the NBA and NBA Players Association met to work on a new CBA, which both sides approved in December of that year. This most recent agreement started with the 2017–18 season and runs through 2023–24, with a mutual opt-out after 2022–23. [4] [5] Either side had to give notice by December 15, 2022 if their decision was to opt out following 2022-23, but in December, 2022 agreement was reached to extend that deadline to February 8, 2023. [6] [7] By April 26th, 2023 the NBA and the CBA came to an agreement.The players voted to ratify this new agreement which would go into effect July 1st, 2023 and would last until the 2029-30 season. [8] The 2016 CBA funds health insurance for retired players, and increased benefits for current players, including a tuition reimbursement fund co-funded by the union and by the league.

Salary cap

Roster size

A team may have a maximum of 15 players on its active roster, and at least eight active players must suit up for every game. Any remaining players are placed in the Inactive List, and cannot play in games. [11] [12] Teams may have a maximum of two players on the Inactive List; this can drop to zero for up to two weeks at a time, and additional, temporary inactive positions may be added with league approval in hardship cases. The Inactive List can change up to 60 minutes before opening tip by informing the official scorer of the game. A player can be inactive for as little as one game. [12] Players sent to the NBA G League will continue to count on a team’s inactive list. [13] [14] While individual teams must carry a minimum of 13 (12 active plus one inactive) players, the NBA guarantees a league-wide average of at least 14 players per team. The league is surcharged if they do not meet the average. [12]

Prior to the 2005 CBA, injured players could be placed on an injured list but were forced to sit out a minimum of five games. [13]

The NBA's 2011 CBA proposal reportedly included an "amnesty clause" – a one-time opportunity for teams to remove their worst contracts from the books. [15]

Trades

Players can be traded between teams in exchange for other players, draft picks and/or a limited amount of cash. Coaches may only be traded for draft picks or cash. Trades are not allowed to be contingent on the completion of other trades. [16] Under the current CBA, a team cannot expend nor receive more than $5.617 million in trades in a given season. [17]

See also

Related Research Articles

<span class="mw-page-title-main">Women's National Basketball Association</span> Professional womens basketball league in the United States

The Women's National Basketball Association (WNBA) is a women's professional basketball league composed of 12 teams, all based in the United States. The league was founded on April 22, 1996, as the women's counterpart to the National Basketball Association (NBA), and league play started in 1997. The regular season is played from May to September, with the All Star game being played midway through the season in July and the WNBA Finals at the end of September until the beginning of October.

In professional sports, a salary cap is an agreement or rule that places a limit on the amount of money that a team can spend on players' salaries. It exists as a per-player limit or a total limit for the team's roster, or both. Several sports leagues have implemented salary caps, using them to keep overall costs down, and also to maintain a competitive balance by restricting richer clubs from entrenching dominance by signing many more top players than their rivals. Salary caps can be a major issue in negotiations between league management and players' unions because they limit players' and teams' ability to negotiate higher salaries even if a team is operating at significant profits, and have been the focal point of several strikes by players and lockouts by owners and administrators.

The NBA G League, or simply the G League, is the official minor league organization of the National Basketball Association (NBA). The league was known as the National Basketball Development League (NBDL) from 2001 to 2005, and the NBA Development League from 2005 until 2017. The league started with eight teams until NBA commissioner David Stern announced a plan to expand the NBA D-League to 15 teams and develop it into a true minor league farm system, with each NBA D-League team affiliated with one or more NBA teams in March 2005. At the conclusion of the 2013–14 NBA season, 33% of NBA players had spent time in the NBA D-League, up from 23% in 2011. As of the 2023–24 season, the league consists of 31 teams, 29 of which are either single-affiliated or owned by an NBA team, along with the NBA G League Ignite exhibition team. Within the G League, players have the chance to get a contract from a current NBA team, and can land themselves a spot on an official roster.

The Major League Baseball Players Association (MLBPA) is the labor union representing all current Major League Baseball players. All players, managers, coaches, and athletic trainers who hold or have held a signed contract with a Major League club are eligible for membership in the Association.

The NHL Collective Bargaining Agreement (CBA) is the basic contract between the National Hockey League (NHL) and the NHL Players' Association (NHLPA), designed to be arrived at through the typical labour–management negotiations of collective bargaining. On January 6, 2013, an agreement was tentatively reached after a labour dispute cancelled 510 regular season games of the 2012–13 season, and was ratified by the league's Board of Governors on January 9, 2013, as well as by the NHLPA membership three days later on January 12, 2013. As originally signed, the 2013 CBA was a 10-year deal, longest in NHL history, expiring after the 2021–22 season. On July 10, 2020, the NHL and NHLPA announced the extension of the CBA through the 2025–26 NHL season.

The 2004–05 NHL lockout was a labor lockout that resulted in the cancellation of the National Hockey League (NHL) season, which would have been its 88th season of play.

In the National Basketball Association (NBA), a sign-and-trade deal is a type of transaction allowed by the collective bargaining agreement (CBA) where one franchise/team signs an unrestricted free agent or restricted free agent player to a new contract, only to then immediately trade him to another team of the player's choosing. This is typically done to enable the player to obtain a higher salary and/or greater number of years on their contract than NBA salary cap rules would ordinarily allow a destination team that signs him directly to a contract.

The NBA salary cap is the limit to the total amount of money that National Basketball Association teams are allowed to pay their players. Like the other major professional sports leagues in North America, the NBA has a salary cap to control costs and benefit parity, defined by the league's collective bargaining agreement (CBA). This limit is subject to a complex system of rules and exceptions and is calculated as a percentage of the league's revenue from the previous season. Under the CBA ratified in July 2017, the cap will continue to vary in future seasons based on league revenues. For the 2022–23 season, the cap is set at $123.655 million.

The 1998–99 Chicago Bulls season was the franchise's 33rd season in the National Basketball Association. On March 23, 1998, the owners of all 29 NBA teams voted 27–2 to reopen the league's collective bargaining agreement, seeking changes to the league's salary cap system, and a ceiling on individual player salaries. The National Basketball Players Association (NBPA) opposed to the owners' plan, and wanted raises for players who earned the league's minimum salary. After both sides failed to reach an agreement, the owners called for a lockout, which began on July 1, 1998, putting a hold on all team trades, free agent signings and training camp workouts, and cancelling many NBA regular season and preseason games. Due to the lockout, the NBA All-Star Game, which was scheduled to be played in Philadelphia, Pennsylvania on February 14, 1999, was also cancelled. However, on January 6, 1999, NBA commissioner David Stern, and NBPA director Billy Hunter finally reached an agreement to end the lockout. The deal was approved by both the players and owners, and was signed on January 20, ending the lockout after 204 days. The regular season began on February 5, and was cut short to just 50 games instead of the regular 82-game schedule.

<span class="mw-page-title-main">National Basketball Players Association</span> U.S. professional basketball player labor union

The National Basketball Players Association (NBPA) is the labor union that represents National Basketball Association (NBA) players. It was founded in 1954, making it the oldest trade union of the four major professional sports leagues in the United States and Canada. However, the NBPA did not get recognition by NBA team owners until ten years later. Its offices are located in the historic Park and Tilford Building in New York City. It was briefly a trade association after dissolving as a union during the 2011 NBA lockout.

The NBA draft is a major annual event in which all the 30 franchises in the National Basketball Association select new players for their teams. Eligibility rules for prospective players have changed eight times during the history of the league. No player may sign with the NBA until they are 18 years or older.

The 1998–99 NBA lockout was the third lockout of four in the history of the National Basketball Association (NBA). It lasted from July 1, 1998, to January 20, 1999, and forced the 1998–99 regular season to be shortened to 50 games per team and that season's All-Star Game to be canceled. NBA owners reopened the league's collective bargaining agreement (CBA) in March 1998, seeking changes to the league's salary cap system and a ceiling on individual player salaries. The National Basketball Players Association (NBPA) opposed the owners' plans and wanted raises for players who earned the league's minimum salary. After the two sides failed to reach an agreement, the owners began the lockout.

The NHL salary cap is the total amount of money that National Hockey League (NHL) teams are allowed to pay their players. It is a "hard" salary cap, meaning there are no exemptions.

The 2012–13 NHL season was the 96th season of operation of the National Hockey League (NHL). The regular season began on January 19, 2013, and ended on April 28, 2013, with the playoffs to follow until June.

The 2011 National Football League Player lockout was a work stoppage imposed by the owners of the NFL's 32 teams that lasted from March 12, 2011, to July 25, 2011. When the owners and the NFL players, represented by the National Football League Players Association, could not come to a consensus on a new collective bargaining agreement, the owners locked out the players from team facilities and shut down league operations. The major issues disputed were the salary cap, players' safety and health benefits, revenue sharing and television contracts, transparency of financial information, rookie salaries, season length, and free agency guidelines. During the 18-week, 4-day period, there was no free agency and training camp, and players were restricted from seeing team doctors, entering or working out at team facilities, or communicating with coaches. The end of the lockout coincided with the formation of a new collective bargaining agreement prior to the start of the 2011 regular season.

The 1998–99 NBA season was the eleventh season for the Charlotte Hornets in the National Basketball Association. On March 23, 1998, the owners of all 29 NBA teams voted 27–2 to reopen the league's collective bargaining agreement, seeking changes to the league's salary cap system, and a ceiling on individual player salaries. The National Basketball Players Association (NBPA) opposed to the owners' plan, and wanted raises for players who earned the league's minimum salary. After both sides failed to reach an agreement, the owners called for a lockout, which began on July 1, 1998, putting a hold on all team trades, free agent signings and training camp workouts, and cancelling many NBA regular season and preseason games. Due to the lockout, the NBA All-Star Game, which was scheduled to be played in Philadelphia, Pennsylvania on February 14, 1999, was also cancelled. However, on January 6, 1999, NBA commissioner David Stern, and NBPA director Billy Hunter finally reached an agreement to end the lockout. The deal was approved by both the players and owners, and was signed on January 20, ending the lockout after 204 days. The regular season began on February 5, and was cut short to just 50 games instead of the regular 82-game schedule.

The 2011 NBA lockout was the fourth and most recent lockout in the history of the National Basketball Association (NBA). Team owners began the work stoppage upon expiration of the 2005 collective bargaining agreement (CBA). The 161-day lockout began on July 1, 2011 and ended on December 8, 2011. It delayed the start of the 2011–12 regular season from November to December, and it reduced the regular season from 82 to 66 games. The previous lockout in 1998–99 had shortened the season to 50 games. During the lockout, teams could not trade, sign, or contact players. Players additionally did not have access to NBA team facilities, trainers, or staff.

The 1998–99 NBA season was the Warriors' 53rd season in the National Basketball Association, and 37th in the San Francisco Bay Area. On March 23, 1998, the owners of all 29 NBA teams voted 27–2 to reopen the league's collective bargaining agreement, seeking changes to the league's salary cap system, and a ceiling on individual player salaries. The National Basketball Players Association (NBPA) opposed to the owners' plan, and wanted raises for players who earned the league's minimum salary. After both sides failed to reach an agreement, the owners called for a lockout, which began on July 1, 1998, putting a hold on all team trades, free agent signings and training camp workouts, and cancelling many NBA regular season and preseason games. Due to the lockout, the NBA All-Star Game, which was scheduled to be played in Philadelphia, Pennsylvania on February 14, 1999, was also cancelled. However, on January 6, 1999, NBA commissioner David Stern, and NBPA director Billy Hunter finally reached an agreement to end the lockout. The deal was approved by both the players and owners, and was signed on January 20, ending the lockout after 204 days. The regular season began on February 5, and was cut short to just 50 games instead of the regular 82-game schedule.

The 2012–13 NHL lockout was a labor dispute between the National Hockey League (NHL) and the National Hockey League Players' Association (NHLPA) that began at 11:59 pm EDT on September 15, 2012. A tentative deal on a new collective bargaining agreement (CBA) was reached on January 6, 2013, with its ratification and signing of a memorandum of understanding on the agreement completed by January 12, 2013, 119 days after the expiry of the previous CBA.

The NFL collective bargaining agreement (CBA) is a labor agreement which reflects the results of collective bargaining negotiations between the National Football League Players Association (NFLPA) and National Football League (NFL). The labor agreement classifies distribution of league revenues, sets health and safety standards and establishes benefits, including pensions and medical benefits, for all players in the NFL. The first collective bargaining agreement was reached in 1968 after player members of the NFLPA voted to go on strike to increase salaries, pensions and benefits for all players in the league. Later negotiations of the collective bargaining agreement called for injury grievances, a guaranteed percentage of revenues for players, an expansion of free agency and other issues impacting the business of the NFL. The NFLPA and team owners have negotiated seven different agreements since 1968.

References

  1. "Players, owners approve agreement". ESPN.com. ESPN Internet Ventures. December 8, 2011.
  2. "The NBA has a new CBA. Here's what you need to know about it - SBNation.com".
  3. Coon, Larry. "Breaking down changes in new CBA". ESPN. Retrieved September 25, 2013.
  4. Wojnarowski, Adrian (October 24, 2016). "CBA could extend seven years with a mutual opt-out in six years" . Retrieved October 24, 2016.
  5. "NBA, players ratify new collective bargaining agreement" (Press release). NBA. December 23, 2016. Retrieved December 28, 2016.
  6. Wojnarowski, Adrian (December 9, 2022). "NBA, players' union agree to extend opt-out deadline for CBA, sources say". ABC News . Retrieved December 9, 2022.
  7. "NBA, NBPA agree to extend deadline to opt-out of current CBA". National Basketball Association . December 14, 2022. Retrieved December 15, 2022.
  8. "NBA, union ratify new CBA; goes into effect July 1". ESPN.com. 2023-04-26. Retrieved 2023-04-27.
  9. "NBA, NBPA reach tentative seven-year CBA agreement | NBA.com".
  10. "Designated Extensions and Other Changes in CBA | Basketball Insiders | NBA Rumors And Basketball News".
  11. Sheridan, Chris. "Breaking news: 13-man NBA rosters to become permanent; Waiver rules could be altered". sheridanhoops.com. Retrieved November 11, 2012.
  12. 1 2 3 Coon, Larry. "NBA Salary Cap FAQ". cbafaq.com. Retrieved December 29, 2011.
  13. 1 2 "Inactive vs. Active List Rules". NBA. November 1, 2005. Retrieved November 5, 2010. Now, the active and inactive list can be set on a game-by-game basis, one hour before tip-off, with no length of stay required for either list.
  14. "CBA Principal Deal Points". NBA. August 4, 2005. Retrieved November 5, 2010. Teams may have a maximum of three players on their inactive list (subject to hardship rules, which will apply in the event that a team with three injured players on its inactive list has a fourth player that suffers an injury).
  15. "The NBA CBA, Amnesty Rule and the League's Worst Contracts". Charlie Zegers. August 2, 2011. Retrieved October 24, 2013.
  16. Stein, Marc; Shelburne, Ramona (June 20, 2013). "Sources: Clips-Celtics talks back on". ESPN.com. Archived from the original on June 22, 2013. Retrieved June 21, 2013.
  17. NBA Trade Rules Overview - CBA Breakdown. Limits on cash transfers