NBA, players finalize new collective bargaining agreement

NEW YORK: The NBA and its players have voted to ratify a new collective bargaining agreement, formalizing a deal that was tentatively agreed to earlier this month.

The sides announced the deal on Wednesday. It goes into effect in July and stretches through the 2029-30 season, though both sides have the option of ending it a year early.

It means the most financially successful era in NBA history will continue uninterrupted for at least six more years. Among the highlights: The addition of an in-season tournament that Commissioner Adam Silver has wanted for years, and about $160 million in team and league licensing revenue getting added annually to the total of basketball-related income that is split with the players.

Such income will remain a 50-50 split — but the pool will get bigger, which will add to player salaries.

Other changes coming in the new CBA include the elimination of marijuana from the list of banned substances, less invasive testing for performance-enhancing drugs, a slight drop in the percentage of salary players will lose when suspended for a game or more — and the assurance that even if revenues drop, the salary cap will not.

About $160M in team and league licensing revenue to be added annually to the total of basketball-related income that is split with the players

Elimination of marijuana from the list of banned substances, and less invasive testing for performance-enhancing drugs

Slight drop in the percentage of salary players will lose when suspended for a game or more

Players can now invest alongside team owners in other businesses outside the NBA

Officials from the NBA and the union spent more than a year negotiating this deal, coming to a tentative agreement in the early-morning hours