National Basketball Association

NBA Rumors: New CBA deal within sight?

Published Jun. 30, 2017 6:28 p.m. ET

foxsports

Reports are that the NBA and the NBA Player’s Association may be near an agreement on a new collective bargaining agreement, heading off any potential work stoppages.

Yahoo’s Adrian Wojnarowski has reported that the NBA and the NBA Player’s Association are set to make a deal — big news for NBA fans. The last time the collective bargaining agreement (CBA) was up, negotiations were turbulent and a work lockout ensued — the fourth such lockout in league history. Games were lost and the regular season began on Christmas. Many insiders have anticipated for years that the NBA was headed for another lockout in 2017, and it now appears that will not happen.

The collective bargaining agreement in the NBA is the agreement between the owners and players over important things like how to distribute the league’s television revenue, and things like contracts, trades, the salary cap, and other league minutia. Casual NBA fans usually have no reason to care about the CBA except during free agency. However, the owners and the NBA Player’s Association can choose to opt out of the current collective bargaining agreement on Dec. 15. At the time of the last CBA expiration in 2011, the owners opted out of their agreement and a lockout occurred. Many team owners stated losses during that time and felt a new CBA necessary. The owners eventually negotiated for a higher percentage of the NBA’s profits and “won” the lockout.

In 2010, NBA revenue was about $3.96 billion. Given that the league’s new annual $2.7 billion TV deal has started this year, league revenue is expected to hit record highs — experts expect around $8 billion this year. The NBA as a business has achieved unprecedented heights, coming a long way from a time when owners claimed losses on their teams just a few years prior. The NBA as a business has changed drastically since the last CBA.

Over the last few months, NBA people started expressing optimism that NBAPA representative Michelle Roberts and Commissioner Adam Silver would reach an agreement. It has appeared that since nobody can cry foul with record profits and contracts, negotiation have been (relatively) easy. With NFL ratings falling and baseball’s popularity continually trending downhill, the ascending NBA could be poised to make a run for America’s most popular league. Nobody wants any work stoppage or uncertainty to jeopardize the NBA’s success. If a new deal is “within sight”, then it is welcome news for everyone involved in the NBA.