The NBA Collective Bargaining Agreement, also known as CBA is a contract between the association – consisting of the chief executive, who is presently, Adam Silver, and 30 team owners – and the National Basketball Players Association. This article will break down the CBA and all it’s components below,
1. The Salary Cap (the “Cap”)
As you know, all teams are subject the Cap and Minimum Team Salary (the “MTS”) for each season. The Cap Year goes into effect on July 1st and continues in effect through June 30th of the following year. The MTS is the minimum team salary that a team must have for a Cap Year and is set equal to 90% of the Cap. What you may not know is that the Cap for the 2019-2020 NBA season is now $99,093,000! No player can be signed for longer than 5 years.
An NBA player may be assigned by his NBA team to the NBA G League if he is in his first, second, or third season in the league. An NBA player who does not meet the foregoing years of service requirements may also be assigned by his NBA team to its NBA G League affiliate, with the consent of the player and NBPA. Most of you will remember the NBA Developmental League, the D-League, which was the G-League’s predecessor. Some of your favourite players to rise from this league were Danny Green, who was a 46 overall pick in the 2009 draft, Shaun Livingston, who became a journeyman after his gruesome leg injury, and Jeremy Lin of the infamous Linsanity era, all NBA champions in their own right.
3. Two-Way Contracts
Beginning in 2017-18, each NBA team has been permitted to have on its roster, up to two players under “Two-Way Contracts.” These types of players provide services primarily to their NBA team’s G League affiliate, but is also permitted to be on the NBA team’s active or inactive list for up to 45 days during the NBA regular season. One of the most famous two-way players this year is Tacko Fall, who happened to conduct an orchestra on his day off from NBA play.For Raptors fans, our two-way guys are Oshae Brissett and Shamorie Ponds, the latter being a former two-time first-team, All-Big East player.
4. Luxury Tax
The team Tax Level is set each season before free agent signings begin at 53.51% of projected BRI. The tax in each season applies to any team with a Team Salary that exceeds the Tax Level. For the 2017-18 season, the Tax Level is $119.266 million.
5. Offer Sheets
If a Restricted Free Agent (“RFA”) receives an offer from a new team that he wants to accept, the player and the new team must provide the terms of the proposed deal to the player’s prior team in the form of an Offer Sheet. Teams and the RFA may enter into Offer Sheets beginning on the first day of the Moratorium Period (i.e., July 1).
6. NBA Draft
The Draft consists of two rounds. The entry age for the Draft is 19 years of age. U.S. players must also be at least one year removed from high school. A player will meet the 19 year old requirement so long as he turns 19 during the calendar year of the Draft.
7. Training Camp
On the first reporting day, teams can require players to report by 11 a.m. (local time). Rookies may be required to report up to 10 days prior to the date veterans are required to report.
8. Waiver Period
The time period for a player to clear waivers is 48 hours.
9. All-Star Game (“ASG”) Player Payments
Interestingly, player payments for the ASG for the 2016-17 season came in at $50,000 for the winners, and $25,000 for those who took the loss. In the same season, player payments for the Rookie-Sophomore Game was $25,000 for the winners, and $10,000 for the losers. Due in part to the players’ wishes to raise the competitiveness of the ASG, the members of the winning all-star team will now receive $100,000 each. Moving forward, player payments for the ASG, Rookie Sophomore Game and All-Star Skills Competitions will be set forth in the CBA or as otherwise agreed to by the NBA and NBPA.
10. Conduct and Discipline
Missed Practices: $2,500 for the first offence; $5,000 for the second offence; $7,500 for the third offense; for the fourth or any subsequent offence, reasonable discipline (including suspension). However, any time a player intentionally misses a practice without reasonable excuse, he will be subject to such discipline as is reasonable under the circumstances.
Missed Exhibition, Regular Season or Playoff Game:
For suspensions of less than 20 games: 1/145th of salary
For suspensions of 20 games or more: 1/110th of salary
Missed Promotional Appearance: $20,000.00
A player’s failure to report for a trade is “conduct detrimental to the NBA,” which (in addition to any discipline imposed the team) will subject the player to fines and suspensions by the Commissioner.
11. Player Appearances
Upon request, players are obligated to make at least 12 promotional appearances for their team or the NBA each year.
12. Days Off (Not to be confused with “Load Management”)
The players were also able to collective bargain that Teams must provide players with 18 days off during each Regular Season. A “day off” is defined to mean a day when a player is neither required nor permitted to engage in any team directed activity (including, promotional appearances). Days off can also include days “on the road”. It should be noted that players are still permitted to voluntarily participate in individual basketball-related activities at team facilities or elsewhere during days off.
13. Rookie Salary Scale
All rookie contracts signed with first round draft picks have a term of two guaranteed years with two separate one-year term options for seasons three and four. If the team wants to exercise the first team option, it must do so during the period from the day following the end of the player’s first season through immediately following October 31. If the team wants to exercise the second team option, it must do so during the period from the day following the end of the player’s second season through the immediately following October 31.