NBA, NBPA ratify new collective bargaining agreement - ESPN

The NBA and National Basketball Players Association announced Wednesday night they have ratified the recently agreed-upon new collective bargaining agreement, one that will ensure labor peace through the remainder of this decade.

The new deal will go into effect on July 1, and will remain in place until at least the summer of 2029, when both sides will have the option — as they did in the current deal — to either opt into the final year of the deal or opt out and negotiate a new one.

The new agreement has several new elements designed to curb spending for the league's highest-paying teams, specifically the Golden State Warriors and LA Clippers. Chief among them: the creation of a «second apron» above the luxury tax, one that will severely hamper teams if they go over it.

Some of those limitations include: the inability to sign any free agents for more than a minimum contract, being unable to use cash in trades and being unable to sign players on the buyout market after the trade deadline.

The new agreement, however, creates a lot of flexibility for everyone besides the handful of teams that don't go over that second apron. The lower bands of the luxury tax were reduced to make it less painful to spend into it, trade restrictions were loosened to make deals more possible — including the mid-level exception now being allowed to be used as a trade exception — and increasing the size of both the mid-level and bi-annual exceptions.

The deal also codifies the much-discussed in-season tournament, which will begin next season, and increased the limits on veteran extensions from 120% of their previous salary to 140%, while also providing opportunities to invest in funds through the NBPA that will allow them to have small stakes