The NBA Collective Bargaining Agreement (CBA) is the master contract between the league (NBA owners) and the players’ union (NBPA). It defines virtually everything about how players are paid, traded, drafted, disciplined and protected — from rookie scale contracts to free agency rules to revenue sharing.
Definition
The CBA is a multi-year agreement negotiated jointly by the NBA and the National Basketball Players Association (NBPA). Each version typically runs six to seven years and includes mutual opt-out clauses near the end. The current CBA was ratified in April 2023, took effect July 1, 2023, and runs through the 2029-30 season, with mutual opt-out windows after the 2028-29 season.
When the CBA expires without a new agreement in place, the NBA enters a lockout — owners stop paying players and operations halt. The 1998-99 and 2011-12 lockouts both shortened those seasons. The 2023 negotiation, by contrast, was completed without missing any games.
Why it matters
Almost every sentence in an NBA news headline ultimately traces back to a CBA rule. Why can the Lakers re-sign LeBron above the cap? Bird rights — CBA Article VII. Why was the Wiggins trade frozen for 24 hours? Salary matching tolerance — CBA Article VII, Section 8. Why did the Warriors lose access to the taxpayer MLE? Second apron rules — added in the 2023 CBA.
The CBA also dictates non-financial rules: drug testing, mental health programs, the rookie development program, the G League pathway, and a long list of player protections (injury pay, severance, retirement benefits). Behind every roster move is a corresponding CBA clause.
Key terms in the CBA
- Basketball-Related Income (BRI): The pool of revenues split 49-51% between players and owners. The salary cap is calculated as a percentage of projected BRI.
- Escrow: A mechanism that withholds a portion of player salaries to keep the actual payout in line with the BRI split.
- Maximum salary: Capped at 25%, 30% or 35% of the cap depending on years of service.
- Rookie scale: Pre-set salary slots for first-round draft picks, with values fixed by pick position.
- Restricted free agency (RFA): Status of a player whose original team can match any offer sheet from another team.
- Two-way contracts: Allows up to three players per team to split time between the NBA and the G League. Expanded from two to three in the 2023 CBA.
- Designated rookie / veteran extension: A pathway to extend a top-tier player at the maximum, including the supermax.
- Step-back rule: Trade rule preventing teams from trading future first-round picks in seven of the next eight drafts (often called the Stepien rule).
What changed in the 2023 CBA
The 2023 CBA was the most consequential since 2011. The headline change was the introduction of the second apron, which has reshaped how the wealthiest teams build rosters. Other notable changes:
- Award-eligibility rule: players must appear in 65+ regular-season games to qualify for MVP, All-NBA, DPOY and other major awards.
- In-Season Tournament added to the calendar (now in its third edition in 2025-26).
- Two-way contract slots expanded from two to three per team.
- New mid-season conversion rules between standard and two-way contracts.
- Tighter restrictions on signing-and-trading players above the apron.
Frequently asked questions
Who negotiates the CBA?
The NBA on behalf of the 30 owners (led historically by the commissioner — Adam Silver since 2014), and the NBPA on behalf of all NBA players (led by executive director Tamika Tremaglio and an executive committee elected by player reps).
How long is the current CBA in force?
Through the 2029-30 season, with mutual opt-outs available after 2028-29. Either side can give notice of opt-out by December 15, 2028.
Has the NBA ever had a lockout?
Yes. Major lockouts in 1998-99 (shortened the season to 50 games) and 2011-12 (shortened to 66 games). Shorter labor stoppages occurred in 1995 and 1996 without affecting games.
Where can I read the CBA?
The full text is published on nbpa.com/cba and runs over 600 pages. Larry Coon’s CBA FAQ is the most-cited plain-language reference.
Related articles
Sources: NBPA Official CBA, NBA league office releases, Larry Coon’s CBA FAQ.