NBA Close to Seven Year Deal with Players
There apparently will not be any work stoppage in the NBA for the next seven years.
The NBA and the players association have reached a tentative agreement in their contract over the next seven years.
The agreement includes a termination clause for both sides after six years as a precaution due to financial considerations. The deal was announced in a joint statement by the league and the NBPA. Each side agreed to push back Thursday’s unofficial deadline to opt out of the current agreement until Jan. 13. This time lapse clause would allow both sides time to review and ratify the deal.
The tentative agreement ensures there will be labor peace for at least the next six years, which is a positive victory for the league. The NBA is flourishing because of the big new television contracts and growing popularity over the past few seasons.
Commissioner Adam Silver discussing CBA
A deal seemed eminent a few months ago when the sides agreed on the largest issue — an equitable revenue split. But some sticking points emerged on other things such as licensing. The rules aimed at contract extensions have changed. The new deal allows players to be extended up to four additional years instead of only three from previous rule.
This Designated Player Extension (DPE) is supposed to help teams retain their star players, or at least give them more options in terms of deciding whether to pursue trade possibilities. An exception to the DPE: It cannot be given to a player who was recently traded, meaning a team cannot trade for a superstar and immediately offer to extend him. One of the stipulations will be his tenure with his current team. Teams will also only be able to give out two DPEs at one time.
Other minor clauses will be included as the two sides work together to finalize the agreement.
