National Basketball Association

NBA and its players have ratified the new collective bargaining agreement

Published Dec. 23, 2016 7:37 p.m. ET

Brett Pollakoff

The NBA's new collective bargaining agreement was ratified this week by both the players and the Board of Governors, the league announced on Friday. The two sides agreed on a seven-year deal that runs through the 2023-24 season, and contains an opt-out option after the sixth year.

''The parties voted based on a term sheet that outline the key deal points,'' the league and the union said in a statement. ''Once the NBA and NBPA finish drafting and execute the complete agreement, specific details will be released.''

Some of the details already have been leaked. The most intriguing is a "designated veteran" contract option that will enable teams to lock up their best player for longer than ever before, on contracts that may approach $250 million in guaranteed salary.