The CBA Glossary
An explainer thing for the NBA's Collective Bargaining Agreement
Player Benefits
As has been outlined elsewhere on this site, NBA players clearly make a lot of money in their playing contracts. But what else do they get?
Media rights
For the most part, the NBA has
ownership and control over the media exploitation and promotion of player
performances, and players are prevented from later bringing legal claims over
those uses. Per the CBA, any entity that generates BRI
for the league has the right to use, distribute, exhibit and license player
performances both during and after the expiration of the CBA. These rights
apply to any performance rendered under an NBA contract and cover every type
of media (digital, print, audio, visual, et cetera), whether it exists
today or is invented in the future. If a player's performance occurred in
connection with their NBA employment, the league retains the right to package,
broadcast, archive, sell, license or otherwise exploit that content. ⓘArticle
XXVIII (Media Rights) Section 1 (League Rights):
The Players Association agrees that the NBA, all League-related entities (including,
but not limited to, NBA Properties, Inc. and NBA Media Ventures, LLC) that
generate BRI, and NBA Teams have the right during and after the term of this
Agreement to use, exhibit, distribute, or license any performance by the players,
under this Agreement or the Uniform Player Contract, in any or all media,
formats or forms of exhibition and distribution, whether analog, digital,
or other, now known or hereafter developed, including, but not limited to,
print, tape, disc, computer file, radio, television, motion pictures, other
audio-visual and audio works, Internet, broadband platforms, mobile platforms,
applications, and other distributions platforms (collectively, “Media”).
If this was not the case, and players could negotiate indiviually, the NBA's entire media business would become much more legally complicated and potentially much more expensive. Imagine needing individual permission for every highlight, we'd all be here forever.
Those rights continue even after a player retires. That is to say, the NBA can air archive footage without needing permission of those within it every time.
To cement this, the Players Association
agrees on behalf of current and future players that neither it nor the players
it represents will sue or fund lawsuits against the NBA, its teams or its
affiliated entities over this media. Those rights have already been assigned
to the league through this collective bargaining, and the economic value generated
by those activities is reflected in BRI, which in turn helps determine player
compensation under the CBA. The players therefore are deemed remunerated,
albeit not directly. ⓘArticle
XXVIII (Media Rights) Section 2 (No Suit):
The Players Association, for itself and present and future NBA players, covenants
not to sue (or finance any suit against) the NBA, all League related entities
(including NBA Properties, Inc. and NBA Media Ventures, LLC) that generate
BRI, and all NBA Teams, or, any of their respective past, present, and future
owners (direct and indirect) acting in their capacity as owners of any of
the foregoing entities, officers, directors, trustees, employees, agents,
attorneys, licensees, successors, heirs, administrators, executors, and assigns,
with respect to the use, exhibition, distribution, or license, in any or all
Media, of any performances by any player rendered under this Agreement or
prior collective bargaining agreements, or under Player Contracts made pursuant
thereto; provided, however, that this Section 2 shall not apply to any Endorsement,
as defined in Section 3 below, any Unauthorized Sponsor Promotion, as defined
in Paragraph 14(e) of the Uniform Player Contract, or any action of the Players
Association pursuant to Section 3 (f) below.
Note, however, that does not apply
to endorsements, which remain separate from the NBA's rights to game footage
and player performances. For example, if a player signs a $20 million endorsement
deal with a shoe company, that deal exists because of the player's personal
fame and marketability, not because the NBA owns him as a commercial asset.
Those rights, then, are separately protected. The NBA can generally sell the
game, but it cannot necessarily sell the player. ⓘArticle
XXVIII (Media Rights) Section 2 (No Suit):
The Players Association, for itself and present and future NBA players, covenants
not to sue (or finance any suit against) the NBA, all League related entities
(including NBA Properties, Inc. and NBA Media Ventures, LLC) that generate
BRI, and all NBA Teams, or, any of their respective past, present, and future
owners (direct and indirect) acting in their capacity as owners of any of
the foregoing entities, officers, directors, trustees, employees, agents,
attorneys, licensees, successors, heirs, administrators, executors, and assigns,
with respect to the use, exhibition, distribution, or license, in any or all
Media, of any performances by any player rendered under this Agreement or
prior collective bargaining agreements, or under Player Contracts made pursuant
thereto; provided, however, that this Section 2 shall not apply to any
Endorsement, as defined in Section 3 below, any Unauthorized Sponsor Promotion,
as defined in Paragraph 14(e) of the Uniform Player Contract, or any action
of the Players Association pursuant to Section 3 (f) below.
>Article XXVIII (Media Rights) Section 3 (Unauthorized Endorsement/Sponsor
Promotion):
(a) Section 1 above does not confer any right or authority for the NBA, any
League related entity or any NBA Team to (i) use, or authorize any thirdparty
to use, any performance by a player in any way that constitutes an unauthorized
endorsement by such player of a third party brand, product or service (“Endorsement”),
or (ii) authorize any third party to use any performance by a player in any
way that constitutes an Unauthorized Sponsor Promotion as defined in Paragraph
14(e) of the Uniform Player Contract..
Players are also protected from having their identities used as commercial endorsements without permission. The NBA, its teams and league-related entities may use and license player performances, but they may not use those performances, or allow third parties to use them, in a way that makes it appear that a player is endorsing a brand, product, or service without the player's authorisation.
The league, teams, broadcasters, and sponsors can continue using game footage,
photos, and event imagery in advertising and promotional materials as long
as they are not unduly focusing on a particular player in a manner that implies
a personal endorsement.
For example, a commercial showing generic game action from across the league
is unlikely to be an endorsement. A commercial built entirely around one player's
image and personality is much more likely to raise concerns. The agreement
also creates a safe harbor for uses that the player specifically approves.
If a player separately signs a deal allowing a company to use his name, image,
likeness, voice, or other "Player Attributes," that use is not an
unauthorized endorsement because the player consented to it.
Travel and accommodation
NBA teams are required to make
reasonable efforts to treat players well when they are on the road. That includes
arranging for baggage handling, booking first-class hotels and providing extra-long
beds where possible. Teams must also provide each player with an individual
hotel room during road trips. If a team willfully fails to follow these hotel
arrangement requirements, it can be fined $5,000. ⓘArticle
XVIII (Travel Accommodations, Locker Room Facilities, and Parking) Section
1 (Hotel Arrangements):
(a) Each Team agrees to use its best efforts to make the following arrangements
for its players while they are “on the road”:
(i) to have their baggage picked up by porters;
(ii) to have them stay in first class hotels; and
(iii) to have extra-long beds available to them in each hotel.
If there is a finding that a Team has committed a willful violation of this
Section 1(a), the NBA shall impose a $5,000 fine on such Team.
(b) When its players are “on the road,” each Team shall provide an individual
hotel room for each player.
Teams are also required to provide
first-class travel on road trips longer than one hour from the home venue,
unless it is unavailable. There is a small carve-out allowing a head coach
to take a first-class seat in place of a player if there are at least eight
first-class seats available, but if that happens, a designated player chosen
by the union must be compensated for the difference between what was paid
for the coachs seat and the seat the player received. Willful violations
of the first-class travel requirement also trigger a $5,000 fine. [You came
to this website for information about Exhibit 10 contracts or something, I'm
sure, but this is the real cheese right here.] ⓘArticle
XVIII (Travel Accommodations, Locker Room Facilities, and Parking) Section
2 (First Class Travel):
(a) Each Team shall provide first class travel accommodations on all trips
in excess of one (1) hour, except when such accommodations are not available;
provided, however, that a Team’s head coach may fly first class in place
of a player when eight (8) or more first class seats are provided to players.
In the event a Team’s head coach flies first class in place of a player,
one (1) player, designated by the Players Association, shall be paid the difference
between the amount paid by such Team for a first class seat on the flight
involved and the cost of the seat purchased for such designated player on
that flight.
(b) If there is a finding that a Team has committed a willful violation of
Section 2(a) above, the NBA shall impose a $5,000 fine on such Team.
Teams are also required to provide
appropriate locker room facilities and make a good-faith effort to keep locker
room temperatures similar to those of the playing court. They must provide
free parking for players at their home arenas and practice facilities. If
a player refuses or fails to pay incidental hotel charges incurred while traveling,
the league allows for progressive discipline, starting with fines of a maximum
of $100 each for the first two incidents in a season and escalating to more
flexible reasonable discipline for repeated issues. The aforementioned
first-class travel, first-class accommodation and hotel bill protections do
not apply to two-way players when they are moving between the NBA team and
its G League affiliate. ⓘArticle
XVIII (Travel Accommodations, Locker Room Facilities, and Parking) Section
3 (Locker Room Facilities):
Each Team agrees to provide suitable locker room facilities and to use its
best efforts to stabilize the temperature in locker rooms to make it consistent
with the temperature on playing courts. Section 4.
Article XVIII (Travel Accommodations, Locker Room Facilities, and Parking)
Section 4 (Parking Facilities):
Each Team agrees to make parking facilities available to its players without
charge in connection with games and practices conducted at the facility regularly
used by such Team for home games and/or practices.
Article XVIII (Travel Accommodations, Locker Room Facilities, and Parking)
Section 4 (Hotel Incidentals):
In the event that a player fails or refuses to pay any incidental charges
he has incurred in connection with a hotel room provided to him by his Team
while the Team is “on the road,” he shall be subject to the following
discipline: (i) for each of the first two (2) occasions during the Season
â€" a maximum fine of $100; and (ii) for any subsequent occasion during such
Season, such discipline as is reasonable under the circumstances.
Article XVIII (Travel Accommodations, Locker Room Facilities, and Parking)
Section 6 (Two-Way Players):
The foregoing requirements and obligations set forth in Sections 1, 2, and
5 above shall not apply to any Two-Way Player traveling between his NBA Team
and NBAGL team.
Player moving expenses
Article III of the CBA deals in its entirety with the fun and exciting issue of "Player Expenses". And continuing the need to be really, really thorough - if the CBA covers it, so will this page.
When a player is traded, the new
team must pay for the player's move to the new city, but only if the expenses
are directly related to the trade, the costs are ordinary and reasonable,
and if the player talks with the new team beforehand about the move with a
written estimate from a professional moving company. The player must provide
that estimate within a "reasonable" time after being traded. ("Reasonable"
is not expressly defined here.) ⓘArticle
III (Player Expenses) Section 1; Moving Expenses:
(a) Moving Expenses. A Team's obligation to reimburse a player for "reasonable"
expenses related to the assignment of a Player Contract from one Team to another
(in accordance with Paragraph 10 of a Uniform Player Contract) shall extend
to the reimbursement of the actual expenses incurred by such player in moving
to the home territory of his new Team, provided that such expenses result
directly from the assignment and are ordinary and reasonable, and provided
further that, prior to his actually incurring such expenses, the player (i)
consults with the Team to which his Contract has been assigned in advance
concerning his move, and (ii) furnishes the Team with a written estimate of
such proposed expenses from an established moving company so as to afford
such assignee Team an opportunity to make reasonably comparable alternative
arrangements for the move of the player. The player shall furnish such written
estimate to the Team within a reasonable time following the notice of the
assignment of the Player Contract. [...]
Once the team receives the estimate,
it has ten days to either approve and reimburse those expenses, or arrange
and pay for the move itself. While what is a "reasonable" timeframe
is not expressly defined, as above, it is however expressly defined that "reasonable"
expenses includes up to one moving vehicle if the player is unmarried,
or up to two vehicles if the player is married. ⓘArticle
III (Player Expenses) Section 1; Moving Expenses:
[...] Upon receipt of such estimate from the player, the Team shall, within
ten (10) days, either agree to reimburse the player for the expenses set forth
in such estimate or make alternative arrangements (at the Team's expense)
for the move of the player. "Reasonable" moving expenses shall include the
cost of moving not more than one (1) automobile for the player (and not more
than two (2) automobiles if the player is married).
After the trade, the new team must
pay for a hotel room in its home city for up to 46 days. The hotel should
be comparable to the hotels the team uses when traveling for road games. ⓘArticle
III (Player Expenses) Section 1; Moving Expenses:
(b) Hotel Accommodations. A player whose Contract is assigned from one Team
to another shall be reimbursed by the assignee Team for the cost of a hotel
room in a hotel (comparable to that in which such Team's players are lodged
while "on the road") in the assignee Team's home city for up to forty-six
(46) days following the assignment.
The new team must also help cover
the player's housing costs in the city he left. They must reimburse rent or
mortgage payments for up to three months after the trade. However, the player
is still legally responsible for making the payments. (Reimbursement
is capped at $6,000 per month, up from $4,500 in the last CBA, and partial
months are paid proportionally.) ⓘArticle
III (Player Expenses) Section 1; Moving Expenses:
(c) Housing Costs Reimbursement. A player whose Contract is assigned from
one Team to another shall be reimbursed by the assignee Team for the cost
of his living quarters (either rent or mortgage expense) in the city from
which he is assigned, for a period of three months after the date of the assignment;
provided, however, that such payment shall: (i) be made only if and to the
extent that the player is legally obligated for such costs; and (ii) not exceed
$6,000 per month. Any such payments shall be made on a pro rata basis if a
full month is not involved.
Before paying, the new team can
require evidence that the player actually paid the moving expenses, that the
player is legally obligated to pay the housing costs, and that the amounts
claimed are accurate. Instead of reimbursing the player afterward, the team
can choose to pay movers, landlords or other vendors directly. ⓘArticle
III (Player Expenses) Section 1; Moving Expenses:
(d) Proof of Expenses. Prior to reimbursing an assigned player as provided
in this Section, an assignee Team may require satisfactory proof that the
player has paid the amounts for which he seeks reimbursement, and, in the
case of housing costs reimbursements, satisfactory proof that the player is
legally obligated to pay such housing costs and the amount thereof. Upon notice
to the player, the assignee Team may, as an alternative to reimbursement,
pay the expenses incurred upon assignment (in accordance with the foregoing
provisions of this Section) directly to the persons, firms, or corporations
involved.
Players are expected to help limit the team's financial exposure. If a player does not maintain a permanent home in his team's city, he should make reasonable efforts to:
a) Sign a short-term lease
rather than a long-term lease, ⓘArticle III
(Player Expenses) Section 1; Moving Expenses:
(e) Player Obligation to Minimize Potential Liability. So as to minimize the
potential liability of NBA Teams under this Section, a player who does not
establish permanent or year-round residence in the home city (or geographic
vicinity thereof) of the Team by which he is employed shall use his best efforts
(i) to obtain a short-term lease on the living quarters he selects, and (ii)
to procure lease provisions authorizing him to sublet such premises and/or
granting such Team the option to take over such lease in the event the Contract
of such player is assigned to another NBA Team.
b) Include lease terms allowing
either a sublease, or for the team to take over the lease if the player gets
traded. ⓘArticle III (Player Expenses) Section
1; Moving Expenses:
(e) Player Obligation to Minimize Potential Liability. So as to minimize the
potential liability of NBA Teams under this Section, a player who does not
establish permanent or year-round residence in the home city (or geographic
vicinity thereof) of the Team by which he is employed shall use his best efforts
(i) to obtain a short-term lease on the living quarters he selects, and (ii)
to procure lease provisions authorizing him to sublet such premises and/or
granting such Team the option to take over such lease in the event the Contract
of such player is assigned to another NBA Team.
This prevents situations where a player signs a long, inflexible lease and then expects a team to absorb all the resulting costs after a trade.
Player meal expenses
Article III also deals with player meal expenses. Yep, despite the amount of money they earn, NBA players also get some per diem food money when travelling with the team. Must be good to be on top.
The CBA set a daily meal expenses
allowance for the 2023-24 season of $156 a day, with the previous that it
will be annually adjusted every season, based on inflation, using the U.S.
Consumer Price Index (CPI-U). The adjusted amount is rounded to the nearest
whole dollar. ⓘArticle III (Player Expenses)
Section 2; Meal Expense Allowance:
(a) The meal expense allowance, provided for in Paragraph 4 of a Uniform Player
Contract, shall be as follows:
(i) For the 2023-24 Season: $156 per day.
(ii) For each subsequent Season of this Agreement: the preceding Season's
meal expense allowance amount adjusted for cost of living by applying to the
preceding Season's meal expense allowance amount the percentage increase (or
decrease) in the national Consumer Price Index for All Urban Consumers (CPI-U)
from the June 1 through the May 31 immediately preceding such Season, and
which shall be rounded off to the nearest whole dollar per day.
If the team is on the road for
only part of a day, players do not automatically receive the full $156. Instead,
the allowance is divided among breakfast, lunch, and dinner. 18% of whatever
the daily stipend is goes to breakfast, 28% to lunch, and 54% to dinner. Yes,
the CBA really does get this precise - it goes as far as to give exact hours
for arriving and departing the home city, and what those times mean for meals
can be stipended. It even clarifies that "home city" in this context
means not just the city where the team normall plays home games, but any alternate
home-game location within 75 miles of that city. It is arguably less glamorous
than your bits about supermax contracts,
this bit, but just as important. Probably. ⓘArticle
III (Player Expenses) Section 2 (Meal Expense Allowance):
(b) When a Team is "on the road" for less than a full day, a partial meal
expense shall be paid based upon the time of departure from or time of arrival
in the Team's home city, in accordance with the following:
(i) Departure after 9:00 a.m. or arrival before 7:00 a.m., no meal expense
allowance for breakfast.
(ii) Departure after 1:00 p.m. or arrival before 11:30 a.m., no meal expense
allowance for lunch.
(iii) Departure after 7:00 p.m. or arrival before 5:30 p.m., no meal expense
allowance for dinner.
For purposes of this Section 2(b), the meal expense allowance for breakfast
shall be deemed to be eighteen percent (18%) of the applicable daily meal
expense allowance (rounded off to the nearest whole dollar); the meal expense
allowance for lunch shall be deemed to be twenty-eight percent (28%) of the
applicable daily meal expense allowance (rounded off to the nearest whole
dollar); and the meal expense allowance for dinner shall be deemed to be fifty-four
percent (54%) of the applicable daily meal expense allowance (rounded off
to the nearest whole dollar).
For purposes of this Agreement and Paragraph 4 of the Uniform Player Contract,
the "home city" of an NBA Team shall be deemed to include only the city in
which the facility regularly used by the Team for home games is located and
any other location at which such home games are played, provided that such
other location(s) is not more than seventy-five (75) miles from such city.
Tickets
An NBA may provide its players
with up to four free tickets for each home game and up to two free tickets
for each road game. Players may purchase additional tickets from the team,
but the team cannot charge less than the price paid by season-ticket holders
for those seats. Any complimentary tickets given to players must be located
in the arena's lower bowl. They cannot be floor seats, such as those positioned
directly courtside in front of the regular seating sections, nor can they
be located in luxury suites or other private enclosed hospitality areas. When
a team provides complimentary tickets for road games, every player who travels
with the team must receive the same number of tickets - the team must choose
a uniform allotment of zero, one, or two tickets for all travelling players.
ⓘArticle XXIX (Miscellanous) Section 9 (Game
Tickets):
(a) In the event that a Team provides complimentary tickets to its players,
the Team may provide up to four (4) tickets per home game and up to two (2)
tickets per road game. Teams may sell additional tickets to players, provided
that such sales shall be no less than the season ticket holder prices for
the applicable game. Seat locations for complimentary tickets provided by
a Team under this Section 9 must be in the lower bowl of the arena and may
not be on the floor (i.e., in front of the risers or permanent bowl seating
or inside the dashers) or in a luxury suite (i.e., a private, enclosed area
that is separate from the arena bowl, including, but not limited to, traditional
enclosed suites, event level (bunker) suites, and party suites).
(b) In the event that a Team provides complimentary tickets to its players
for road games, each player on the roster who travels with the Team shall
be provided the same number of tickets (i.e., either zero (0), one (1), or
two (2)).
Teams are prohibited from giving
tickets to players who play for other NBA teams, and equally, players are
not allowed to accept tickets from another team. Ticket arrangements must
remain between a player and his own team. ⓘArticle
XXIX (Miscellanous) Section 9 (Game Tickets):
(c) Teams are prohibited from providing tickets to players on other Teams,
and players are only permitted to accept tickets from their own Team.
Any player who is caught reselling
complimentary or discounted tickets loses the right to receive those types
of tickets from his team in the future. ⓘArticle
XXIX (Miscellanous) Section 9 (Game Tickets):
(d) Any player found to be re-selling complimentary or reduced-price tickets
will be prohibited from subsequently receiving such tickets from his Team.
If a team distributes complimentary
tickets for home games, the seating locations must be assigned according to
seniority. Players with the greatest number of years of service are entitled
to the most desirable seats, while less senior players receive less favorable
locations. Teams must also make tickets available to the Players Association
- upon at least 48 hours' notice, a team must provide up to four tickets for
any home game to authorised union representatives at the standard ticket price.ⓘArticle
XXIX (Miscellanous) Section 9 (Game Tickets):
(e) In the event that a Team provides home-game tickets to its players, seat
locations must be allocated to players based on seniority, with the most senior
players (based on Years of Service) receiving the most favorable seat locations.
(f) NBA Teams shall provide four (4) tickets to authorized representatives
of the Players Association to any home game at box office prices, provided
notice of such request is given at least forty-eight (48) hours before the
game.
In addition, retired players who
have accumulated at least three years of NBA service must be given the opportunity
to purchase two tickets to a team's home games at standard prices. The team
must hold those tickets for the retired player, provided tickets remain available
and the retired player gives at least 48 hours' advance notice.ⓘArticle
XXIX (Miscellanous) Section 9 (Game Tickets):
(g) Each Team agrees to provide retired players with three (3) or more Years
of Service with the opportunity to purchase two (2) tickets at box office
prices to its NBA home games, and to hold such tickets for such players, provided
tickets are available and the retired players provide the Team with forty-eight
(48) hours advance notice of their desire for such tickets.
Other benefits
Any player participating in the
All-Star Game, Rising Stars Game or an All-Star Skills Competition is entitled
to bring two guests. The NBA pays for round-trip first-class airfare for those
guests between the player's NBA home city and the site of the event. ⓘArticle
XXI (All-Star Game) Section 3 (Player Guests):
Each player who participates in the All-Star Game, Rookie-Sophomore Game,
or any All-Star Skills Competition may invite two (2) guests, who shall be
reimbursed for the cost of round-trip first-class air transportation between
the home city of the Team by which such player is employed and the site of
the All-Star Game, Rookie-Sophomore Game, or All-Star Skills Competition.
Players who are not involved in
any All-Star Weekend activity receive a guaranteed three-day break. ⓘArticle
XXI (All-Star Game) Section 4 (Players Not Participating in All-Star Activities):
Players who do not attend or participate in the All-Star Game, Rookie-Sophomore
Game, an All-Star Skills Competition, or NBAGL All-Star activities shall have
three (3) days off during the All-Star Weekend break.
All players on full NBA contracts
get a free League Pass subscription. Players on ten-day contracts or two-way
deals do not. ⓘArticle XXIX
(Miscellaneous) Section 10 (League Pass):
Any player who is under a Uniform Player Contract, with the exception of 10-Day
Contracts or Two-Way Contracts, shall receive a free League Pass Broadband
account in each Season of his Player Contract.
MAIN TAKEAWAYS:
- The more your team are over the luxury tax threshold, the more your team will pay.
- The more regularly your team is over the luxury tax threshold, the more your team will pay, too.
- Teams under the tax threshold not only avoid penalty, but get rebates, which do not change their salary cap picture but which do improve the cash position.
- In addition to the luxury tax - whose effectiveness as a payroll deterrent had dwindled in light of the Golden State Warriors' extravagant spending - the NBA has recently introduced the "apron" thresholds, which exist in addition to the tax, and which are designed to reduce excessive spending not just through extra payments but through reduced spending options. See the Aprons page for more.