The NBA and the National Basketball Players Association announced last week that they have reached agreement on a new Collective Bargaining Agreement. If the deal is ratified by both sides, which is a formality, the league will be assured of labor peace for at least the next six years.
At the highest of levels, not much would change in the new deal.
The split of league-wide revenues will remain the same – the players will be virtually assured to receive a 51 percent share (as they are in the current agreement). The salary cap will be calculated the exact same way. The luxury tax will be calculated the exact same way, and teams will be penalized just as severely for crossing it.
Rather than pushing for sweeping changes, the NBA was clearly focused on one thing — stopping superstar players from leaving their teams in free agency. Since 2010, several top-tier players have left as free agents, including LeBron James and Chris Bosh (2010), Dwight Howard (2013), and Kevin Durant (2016). Carmelo Anthony (2011), Chris Paul (2011) and Kevin Love (2014) also forced trades under the threat of leaving their teams with nothing in free agency.
To stop the flow, the league created new rules that provide huge financial incentives for a select group of top-tier players to stay with their existing teams – rules with which the players (the union for whom was led by the players who would benefit the most) were more than happy to oblige. Read more…