The discussions between the NBA and the Players Association on a new agreement are currently in the works. Both sides are likely to extend the early opt-out deadline which was set for Wednesday. Extending the deadline will allow both sides to both sides to continue working on a new long-term collective bargaining deal. The NBA CBA deadline is expected to be pushed out to June 30.
As the sides continue talking, one of the biggest focal points is the hard cap and the NBA’s willingness to soften up on their recent hard push. The NBA’s seven-year CBA expires after the 2023-24 season, but Wednesday’s deadline — already extended from Dec. 15 — pushes back both sides’ ability to opt out of the current deal on June 30 and risk the possibility of a lockout.
On Friday, the NBA’s board of governors voted to give the labor relations committee the approval of the extended deadline. This is the second time this season that both sides have agreed to push the discussion deadline. If either side opts out, the business of the league would shut down. No contracts would be agreed upon, and the ability to make trades would cease. Though, the risk of losing regular-season games would not be in effect until October.
The upper spending limit, which is in the discussion, has been rooted in the hopes to make the league more competitive. Allowing small-market teams to sign key players by reining in the spending of big-market teams such as the Los Angeles Lakers, Brooklyn Nets, and Golden State Warriors. The contenders in big-market areas are accumulating outsize payrolls and luxury tax penalties. The NBA had proposed a system that would replace the luxury tax with a hard limit that teams could not exceed to pay salaries, sources said.
As of now, there is no pathway to getting the NBA’s Player association’s new leadership, president CJ McCollum and director Tamika Tremaglio, to accept the proposed hard cap. Though broader economic concerns are looming, which resulted in a deal not being made in time.
Twenty of the 30 NBA teams are currently below the luxury tax threshold of $150.3 million — with the other 10 teams projected to pay a league-record $689 million in luxury tax penalties in the 2022-23 season.
The discussions between the two sides will continue in the hopes that an agreement will be made by the new NBA CBA deadline.
Get the latest sports news via Fantom Sports Industries. Follow us on Twitter via @Fantom_sports. Like us on Facebook via Fantom Sports Industries. Subscribe to our YouTube channel via Fantom Sports. Subscribe to our Newsletter! Shop Fantom Sports Industries Merch.
Invest in your favorite athletes like stocks with “Prediction Strike!” Use code FANTOM when you sign up
