The Past

Every seven years, the National Basketball Association (NBA) and the National Basketball Players Association (NBPA), the labor union representing NBA players, come together to negotiate a Collective Bargaining Agreement (CBA) that sets out the minimum terms and conditions for all NBA players as well as the respective rights and obligations of the league, its teams, and the NBPA. The CBA’s purpose is to govern crucial issues such as salary structure, revenue sharing, free agency rules, player benefits, disciplinary procedures, dispute resolution mechanisms, and more. By collectively bargaining, both sides operate within the National Labor Relations Act (NLRA) structure, which grants legal protections for union activities and establishes mechanisms for addressing labor disputes. Equally important, both the NBA and NBPA are required under the NLRA to bargain in good faith. Any disputes regarding the salary cap or apron rules – including their application, exceptions, or alleged circumvention – are subject to the grievance and arbitration process established by the CBA, which helps to ensure predictability in enforcement. Importantly, collectively bargained agreements are generally shielded from antitrust liability under the “non-statutory labor exemption,” allowing the league to impose salary caps and other restrictions that would otherwise be considered “restraints of trade.” But broadly speaking, the CBA establishes uniform employment standards across the NBA and ensures competitive balance across its 30 (and potentially 32) teams.Continue Reading From Soft Caps to Hard Lines: How the NBA’s Latest CBA Reshapes Spending and Teambuilding Strategy