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NBA, NBPA reach agreement on new CBA

NBA, NBPA reach agreement on new CBA

The NBA and the National Basketball Players Association announced today that they have reached agreement in principle on the start of the 2020-21 season, as well as adjustments to certain provisions of the current collective bargaining agreement impacted by the COVID-19 pandemic. The agreement is subject to a vote by the league’s Board of Governors.
 
The parties have agreed in principle to the following:
· The 2020-21 season will begin on Tuesday, December 22.
· The 2020-21 season will feature each team playing a 72-game schedule. The full regular-season and broadcast schedules will be released at a future date.
• A new system will be used to ensure the parties’ agreed-upon split of basketball-related income (BRI).  In the event player compensation were to exceed the players’ designated share in any season, necessary salary reductions beyond the standard 10 percent escrow would be spread across that season and potentially the following two seasons, subject to a maximum salary reduction in any season of 20 percent.
· For the 2020-21 season, the Salary Cap will be $109.140 million and the Tax Level will be $132.627 million. In subsequent seasons of the CBA, the Salary Cap and Tax Level will increase by a minimum of three percent and a maximum of 10 percent over the prior season. Teams’ Tax payments will be reduced in proportion to any BRI decreases.
· Free agent negotiations will begin on November 20 at 6 p.m. (ET), with signings starting at 12:01 p.m. (ET) on November 22.

ANALYSIS: As expected, the NBA and NBPA have reached an agreement on a new CBA for the 2020-21 season. The NBA Draft on November 18th will kick off a hectic month for the league as teams try to prepare for a December 22nd start date. Some key dates to take away from the new CBA include November 20th (free agency begins) and November 22nd (players can sign contracts).  

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