National Basketball Association

New NBA collective bargaining agreement allows players to invest in NBA and WNBA teams

Published Jun. 30, 2023 4:24 p.m. ET

The NBA has released its new collective bargaining agreement, consisting of 676 pages. The agreement introduces several significant changes, including the ability for NBA players to invest in NBA and WNBA teams.

However, players can only own a minority share, not exceeding five percent, in an NBA team through an NBA-approved investment fund.

The details of this process are still being determined, with the NBA currently approving three private equity funds for investment.

The NBA and the National Basketball Players Association (NBPA) are working together to ensure compliance with labor and securities laws.

Furthermore, players are now permitted to invest in sports betting and cannabis companies, as long as their ownership stakes remain within specific limits. They can endorse and promote these companies to a limited extent, focusing on general brand promotion or bets on leagues other than the NBA.

Additionally, players can hold ownership shares in companies selling CBD products but not those selling marijuana products, subject to certain restrictions.

Regarding the NBA Draft Combine, all invited players are now required to attend and participate in testing and drills. Medical testing and exams, previously optional, are now mandatory.

Failure to comply with these requirements will render a player ineligible for the draft. This change aims to address concerns about high-profile prospects withholding their medical information from certain teams. The league will selectively share medical information based on player rankings and team needs.

The new agreement also introduces requirements for players to qualify for postseason awards and All-NBA or All-Defensive teams.

Players must have participated in a minimum of 65 games or played in at least 62 games before a season-ending injury, accounting for at least 85 percent of their team's games before getting injured. There is a grievance process available to contest the exclusion from postseason honors under specific circumstances.

Regarding wearables, the NBA and the NBPA hold differing views on their usage during games. The NBA supports their use, while the union prefers them to be optional, with revised rules on data usage.

Currently, wearables are not allowed during games but can be used during practices with player consent. The CBA provides a list of approved wearable companies and products.

Other miscellaneous changes include allowing teams to play a game on the same day after traveling across two time zones, with minimal impact on back-to-back games.

Specific time restrictions are imposed on games scheduled on January 1st and Good Friday.

Additionally, all NBA players, except those on two-way and 10-day contracts, will receive free access to NBA League Pass. In-season tournament prizes have been established, with varying amounts awarded to players based on team performance.

These changes reflect the key provisions of the NBA's new collective bargaining agreement, aimed at addressing various aspects of player investments, draft processes, awards qualifications, wearables, scheduling, and player benefits.