The NBA and NBPA agree to a new 7-year collective bargaining agreement

The NBA and the National Basketball Players Association have reached agreement on a new seven-year collective bargaining agreement, promising workers peace for the rest of the contract, sources tell ESPN early Saturday morning.

The league and the federation announced the initial deal, which begins with the 2023-24 season, and is expected to be approved by league referees and players in the coming weeks. Sources told ESPN the deal includes a mutual withdrawal after year six.

The deal arrived early Saturday morning after the two sides agreed to extend the league’s midnight deadline for opting out of the final year of the previous CBA. NBA commissioner Adam Silver, league executive director Tamika Tremaglio, and negotiators from both sides — including NBA’s Dan Rupp and union’s Ron Klempner — worked out remaining details on the agreement, sources said.

After two extensions to the early opt-out deadline, the league’s negotiations with Tremaglio and new NBPA president CJ McCollum delivered a deal months before a potential business outage.

Among the key initials of the deal, explained to ESPN:

• The NBA limits the ability of higher-spending teams, such as the Golden State Warriors and Los Angeles Clippers, to continue to increase spending on payroll and luxury taxes while maintaining mechanisms to add talent to the roster. The NBA is implementing a second salary cap — $17.5 million over the tax cap — and those teams won’t be able to reach the average taxpayer level in free agency. These salary cap changes will be mitigated over a period of years.

In light of those changes, Golden State’s Donte DiVincenzo, Milwaukee’s Joe Engels, Boston’s Danilo Gallinari, and former Clippers guard John Wall were unable to sign with those teams last summer.

In the face of these spending constraints, the new CBA is expected to create more spending and commercial opportunities for teams in the mid- and low-spending range. More opportunities will open up in the free agent market, including larger commercial exceptions.

• In an effort to reduce managing loads and missed games between star players, the NBA ties eligibility for postseason awards—such as All-NBA teams and MVP teams—with a mandatory 65 games played. Minimum of 65 games come with some conditions.

• The tournament could arrive in season once the 2023-24 season. The event will include pool games included in the regular season schedule beginning in November – with eight teams advancing to the single-elimination tournament in December. Sources said the Final Four will be held at a neutral venue, with Las Vegas prominent in the discussions.

Each championship game of the season will count toward the regular season standings; The two finalists will play 83 regular season games. The winning players and coaches will receive additional prize money.

• The NBA and NBPA have agreed to increase the upper limits on stretches from a 120% increase in an existing deal to 140%, which could have a huge impact on the futures of stars like Celtics forward Jaylen Brown.

Under the current rules, Brown will be allowed to sign a four-year, $165 million extension. With extension rules increased to 140%, however, the Browns — who are set to earn $31.8 million in the 2023-24 season, the final year of his current contract — will be able to reach the four-year maximum of $189 million according to Bobby. Marks from ESPN.

Likewise, Sacramento Kings All-Star center Domantas Sabonis could currently sign a four-year, $111 million extension — an extension as high as $121 million with up to a 140% increase.

• There is an increase in two-way node slots, jumping from two to three per team. Two-way contracts were created in the 2017 Collective Bargaining Agreement as a tool for teams to develop young players. It was seen as a success, becoming a way for players to earn long-term homes in the league, and in many cases becoming major contributors.

Some of the biggest success stories to emerge from the two-way pipeline include: Austin Reeves and Alex Caruso with the Los Angeles Lakers; Duncan Robinson and Max Stross of the Miami Heat. Anthony Lamb with the Warriors; Jose Alvarado with the New Orleans Pelicans; Dort Loggins with the Oklahoma City Thunder.

ESPN’s Tim Bontemps and Bobby Marks contributed to this report.