nba collective bargaining agreement

510 Pages·2015·24.77 MB·English

NBA

COLLECTIVE BARGAINING

AGREEMENT

December 2011

Table of Contents i

COLLECTIVE BARGAINING AGREEMENT

DECEMBER 8, 2011

TABLE OF CONTENTS

ARTICLE I DEFINITIONS ......................................................... 1

Section 1. Definitions ................................................................... 1

ARTICLE II UNIFORM PLAYER CONTRACT .................... 13

Section 1. Required Form .......................................................... 13

Section 2. Limitation on Amendments .................................... 13

Section 3. Allowable Amendments .......................................... 13

Section 4. Compensation Protection ....................................... 18

Section 5. Conformity ................................................................ 25

Section 6. Minimum Player Salary ............................................ 25

Section 7. Maximum Annual Salary ......................................... 28

Section 8. Promotional Activities ............................................. 33

Section 9. 10-Day Contracts ...................................................... 37

Section 10. Rest-of-Season Contracts ........................................ 38

Section 11. Bonuses ...................................................................... 38

Section 12. General ....................................................................... 40

Section 13. Void Contracts .......................................................... 43

Section 14. Moratorium Period ................................................... 44
ii Table of Contents
ARTICLE III PLAYER EXPENSES ............................................ 45

Section 1. Moving Expenses ..................................................... 45

Section 2. Meal Expense Allowance ........................................ 46

ARTICLE IV BENEFITS ............................................................... 48

Section 1. Player Pension Benefits ........................................... 48

Section 2. Player 401(k) Benefits .............................................. 54

Section 3. Player Supplemental Medical Benefits ................... 57

Section 4. New Welfare and Post-Employment
Benefit Plan ............................................................... 60

Section 5. Labor-Management Cooperation and
Education Trust ........................................................ 67

Section 6. Additional Player Benefits ....................................... 69

Section 7. Insurance Carriers..................................................... 73

Section 8. New Benefits Funding ............................................. 74

Section 9. Projected Benefits ..................................................... 76

ARTICLE V COMPENSATION AND EXPENSES IN
CONNECTION WITH MILITARY DUTY ..... 78

Section 1. Salary .......................................................................... 78

Section 2. Travel Expenses ........................................................ 78

ARTICLE VI PLAYER CONDUCT ............................................ 79

Section 1. General ....................................................................... 79
Table of Contents iii
Section 2. Practices ..................................................................... 79

Section 3. Promotional Appearances ....................................... 79

Section 4. Mandatory Programs ................................................ 80

Section 5. Media Training, Business of Basketball
and Anti-Gambling Training .................................. 80

Section 6. Charitable Contributions ......................................... 80

Section 7. Unlawful Violence .................................................... 82

Section 8. Counseling for Violent Misconduct ....................... 82

Section 9. Firearms and Other Weapons ................................ 83

Section 10. One Penalty ............................................................... 83

Section 11. League Investigations ............................................... 84

Section 12. On-Court Conduct ................................................... 84

Section 13. Motor Vehicles .......................................................... 85

Section 14. Player Convictions Involving Alcohol
or Controlled Substances ........................................ 85

Section 15. Player Arrests ............................................................ 85

ARTICLE VII BASKETBALL RELATED INCOME,
SALARY CAP, MINIMUM TEAM
SALARY, AND ESCROW
ARRANGEMENT .................................................. 86

Section 1. Definitions ................................................................. 86

(a) Basketball Related Income ...................................... 86
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(b) Accounting Methods/
Lump Sum Payments ............................................. 108

(c) Projected BRI .......................................................... 109

(d) Local Expansion Team BRI .................................. 110

(e) Projected Local Expansion Team BRI ................ 110

(f) Interim Projected BRI ........................................... 111

(g) Barter ........................................................................ 111

(h) Estimated Total Benefits ....................................... 111

(i) Estimated Total Salaries ........................................ 111

(j) Estimated Total Salaries and Benefits ................. 111

(k) Estimated BRI ......................................................... 111

Section 2. Calculation of Salary Cap
and Minimum Team Salary ................................... 111

(a) Salary Cap ................................................................ 111

(b) Minimum Team Salary ........................................... 113

(c) Expansion Team Salary Caps
and Minimum Team Salaries ................................ 114

(d) Adjustments to Salary Cap
and Minimum Team Salary ................................... 115

(e) Guarantee ................................................................ 117
Table of Contents v

Section 3. Determination of Salary ......................................... 118

(a) Deferred Compensation ........................................ 118

(b) Signing Bonuses ...................................................... 120

(c) Loans to Players ...................................................... 122

(d) Incentive Compensation ....................................... 123

(e) International Player Payments .............................. 125

(f) One-Year Minimum Contracts ............................. 127

(g) Insurance Premium Reimbursement ................... 127

(h) Averaging ................................................................. 127

(i) Existing Contracts .................................................. 127

Section 4. Determination of Team Salary ............................. 127

(a) Computation ........................................................... 127

(b) Expansion ................................................................ 133

(c) Assigned Contracts ................................................. 133

(d) Free Agents.............................................................. 133

(e) First Round Picks ................................................... 135

(f) Incomplete Rosters ................................................ 136

(g) Renouncing .............................................................. 137

(h) Long-Term Injuries ................................................ 138
vi Table of Contents
(i) Summer Contracts .................................................. 140

(j) Team Salary Summaries ......................................... 141

Section 5. Operation of Salary Cap ........................................ 141

(a) Basic Rule ................................................................ 141

(b) Room ........................................................................ 141

(c) Annual Salary Increases and Decreases ............... 141

(d) Performance Bonuses ............................................ 144

(e) No Futures Contracts ............................................ 145

Section 6. Exceptions to the Salary Cap ................................ 146

(a) Existing Contracts .................................................. 146

(b) Veteran Free Agent Exception ............................. 146

(c) Disabled Player Exception .................................... 147

(d) Bi-annual Exception ............................................... 150

(e) Non-Taxpayer Mid-Level
Salary Exception ..................................................... 151

(f) Taxpayer Mid-Level Salary Exception ................. 152

(g) Mid-Level Salary Exception for Room
Teams ....................................................................... 154

(h) Rookie Exception ................................................... 155

(i) Minimum Player Salary Exception ....................... 155

(j) Traded Player Exception ....................................... 155
Table of Contents vii

(k) Reinstatement .......................................................... 158

(l) Non-Aggregation .................................................... 158

(m) Other Rules ............................................................. 159

Section 7. Extensions, Renegotiations
and Other Amendments ........................................ 161

(a) Veteran Extensions ................................................ 161

(b) Rookie Scale Extensions ........................................ 164

(c) Renegotiations ......................................................... 164

(d) Other ........................................................................ 166

Section 8. Trade Rules .............................................................. 169

Section 9. Miscellaneous .......................................................... 173

Section 10. Accounting Procedures ......................................... 174

Section 11. Players Association Audit Rights ......................... 178

(a) Team Audits ............................................................ 178

(b) Expense Audit ......................................................... 179

(c) Confidentiality ......................................................... 180

Section 12. Escrow and Tax Arrangement .............................. 180

(a) Definitions ............................................................... 180

(b) Compensation Adjustment Rules ........................ 188

(c) Escrow Procedure .................................................. 191
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(d) Reconciliation Procedures ..................................... 193

(e) Aggregate Compensation Adjustment
Amount Shortfalls .................................................. 197

(f) Team Payments ....................................................... 198

(g) Escrow and Tax Proceeds ..................................... 201

(h) Revenue Decline ..................................................... 202

(i) Miscellaneous .......................................................... 203

(j) Amnesty Procedures .............................................. 204

ARTICLE VIII ROOKIE SCALE .................................................. 211

Section 1. Rookie Scale Contracts for
First Round Picks ................................................... 211

Section 2. Rookie Contracts for Later-Signed
First Round Picks ................................................... 214

Section 3. Loss of Draft Rights .............................................. 214

ARTICLE IX LENGTH OF PLAYER CONTRACTS ........... 216

Section 1. Maximum Term ...................................................... 216

Section 2. Computation of Time ............................................ 216

ARTICLE X PLAYER ELIGIBILITY AND
NBA DRAFT.......................................................... 217

Section 1. Player Eligibility ...................................................... 217

Section 2. Term and Timing of Draft Provisions ................ 219