The CBA Glossary
An explainer thing for the NBA's Collective Bargaining Agreement
The NBA Draft
Something socialist
Draft eligibility Tenders Use in trade Repeater tax RebatesDates and format
The NBA must hold a draft before
every season. The CBA demands it, to the point that even after the CBA itself
expires, the NBA must still hold a draft before the season immediately following
the final season covered by the agreement. The Commissioner chooses the exact
date, but the draft must take place before July 10 preceding the upcoming
season - in reality, it tends to be the penultimate Thursday in June. ⓘArticle
X (Player Eligibility and NBA Draft) Section 2 (Term and Timing of Draft Provisions):
An NBA Draft will be held prior to the commencement of each NBA Season covered
by the term of this Agreement and, despite the expiration of the other terms
of this Agreement pursuant to Article XXXIX, prior to the commencement of
the NBA Season immediately following the final Season covered by the term
of this Agreement. Each such Draft will be held prior to the July 10 preceding
the commencement of the NBA Season on a date to be designated by the Commissioner.
The draft consistent of two rounds,
with each round containing one pick for every NBA team that will exist the
following season. Teams cannot pass on picks - you may be able to in your
fantasy league or see it done in other leagues, but the NBA CBA guarantees
that picks will be made. If teams do not want to draft a player, they can
trade the pick before or after the draft, or in a worst-case scenario can
renounce the pick entirely. The modern trade value placed on picks, though,
means that all are going to have market value, if only in cash, and can always
be traded. ⓘArticle X (Player Eligibility
and NBA Draft) Section 3 (Number of Choices):
(a) The NBA Draft shall consist of two (2) rounds, with each round consisting
of the same number of selections as there will be Teams in the NBA the following
Season. Each Team shall be required to exercise any and all draft selections
in its possession during each round of the Draft.
If a pick is forfeited - which
does happen, particularly for tampering
violations - the CBA prescribes that the pick disappears, and the number is
just skipped. For example, if the team with the ninth pick has it forfreited,
the draft goes from #8 directly to #10. If this happens in the first round,
the Rookie Salary Scale is adjusted accordingly.prevents salary-slot numbering
from becoming distorted by the missing pick - the process for this is outlined
on the Rookie
Scale page.ⓘ(This used to not be the case - when the Minnesota Timberwolves
had their 2001 and 2002 first-round picks forfeited for the
Joe Smith collusion, for example, their forfeited picks were both deemed
to have both been 29th and last in the first round, even though this is not
where the Wolves were slated to pick. This is not what happens now.) ⓘArticle
X (Player Eligibility and NBA Draft) Section 3 (Number of Choices):
(b) If, pursuant to any provision of this Agreement or the NBA Constitution
and By-Laws, any Team is required to forfeit one or more draft pick(s) in
a particular NBA Draft, the number of players selected in the applicable round
of the Draft will be reduced by the number of such forfeitures. (Thus, for
example, if Team A is required to forfeit the ninth pick in the first round
of the Draft (at a time when there are thirty (30) NBA Teams), there will
only be twenty-nine (29) players selected in the first round of such Draft.)
In the event the forfeiture relates to one or more first round picks, the
Rookie Salary Scale will be adjusted as set forth in Article VIII, Section
1(b)(ii). Other than as specifically agreed to herein, nothing contained in
this Agreement shall be deemed to be an agreement of the Players Association
to any provision of the NBA Constitution and By-Laws.
Eligibility criteria
Everyone has to pass through at
least one draft before they can sign an NBA contract. No more than two, but
no less than one. This includes every college basketball player, international
professional, and even you and your own family members. ⓘArticle
X (Player Eligibility and NBA Draft) Section 1 (Player Eligibility):
(a) No player may sign a Contract or play in the NBA unless he has been eligible
for selection in at least one (1) NBA Draft. No player shall be eligible for
selection in more than two (2) NBA Drafts.
Luckily for you and your family members, most of us do not have to do anything - due to the concept of automatic eligibility. At some point, we are all automatically eligible for the draft - and there is also the concept of early entry for those who do not want to wait. The parameters are set out below.
For anyone to be eligible for a draft, even your dear old mother, a player must first satisfy both of the following:
a) be at least 19 years old, or turn 19 during the calendar year of the draft
b) be at least one NBA season removed from high school (for non-international players, at least one NBA season must have passed since their high school graduation, or, If they did not graduate, when their high school class would have graduated)
From there, there are seven ways a player can become eligible. A player must meet one of the following criteria;
● Graduated from
a four-year American college, or will graduate that year, and has no college
eligibility remaining ⓘArticle X (Player
Eligibility and NBA Draft) Section 1 (Player Eligibility):
(b) A player shall be eligible for selection in the first NBA Draft with respect
to which he has satisfied all applicable requirements of Section 1(b)(i) below
and one of the requirements of Section 1(b)(ii) below:
(i) The player (A) is or will be at least nineteen (19) years of age during
the calendar year in which the Draft is held, and (B) with respect to a player
who is not an “international player” (defined below), at least one (1)
NBA Season has elapsed since the player’s graduation from high school (or,
if the player did not graduate from high school, since the later of the graduation
of the class with which the player would have graduated based on the high
school class he was in when he (i) first enrolled in high school, or (ii)
was last enrolled in high school); and
(ii) (A) The player has graduated from a four-year college or university in
the United States (or is to graduate in the calendar year in which the Draft
is held) and has no remaining intercollegiate basketball eligibility [...]
● Attended a four-year
American college, their original class has graduated (or is graduating that
year), and they have no remaining college eligibility [this is similar
to the previous criterion, but covers players who stayed in school longer
than four calendar years] ⓘArticle X
(Player Eligibility and NBA Draft) Section 1 (Player Eligibility):
(b) A player shall be eligible for selection in the first NBA Draft with respect
to which he has satisfied all applicable requirements of Section 1(b)(i) below
and one of the requirements of Section 1(b)(ii) below:
(i) The player (A) is or will be at least nineteen (19) years of age during
the calendar year in which the Draft is held, and (B) with respect to a player
who is not an “international player” (defined below), at least one (1)
NBA Season has elapsed since the player’s graduation from high school (or,
if the player did not graduate from high school, since the later of the graduation
of the class with which the player would have graduated based on the high
school class he was in when he (i) first enrolled in high school, or (ii)
was last enrolled in high school); and
[...] (B) The player is attending or previously attended a four-year college
or university in the United States, his original class in such college or
university has graduated (or is to graduate in the calendar year in which
the Draft is held), and he has no remaining intercollegiate basketball eligibility
[...]
● Graduated from
an American high school, never enrolled in a four-year American college, and
four calendar years have passed since graduation ⓘArticle
X (Player Eligibility and NBA Draft) Section 1 (Player Eligibility):
(b) A player shall be eligible for selection in the first NBA Draft with respect
to which he has satisfied all applicable requirements of Section 1(b)(i) below
and one of the requirements of Section 1(b)(ii) below:
(i) The player (A) is or will be at least nineteen (19) years of age during
the calendar year in which the Draft is held, and (B) with respect to a player
who is not an “international player” (defined below), at least one (1)
NBA Season has elapsed since the player’s graduation from high school (or,
if the player did not graduate from high school, since the later of the graduation
of the class with which the player would have graduated based on the high
school class he was in when he (i) first enrolled in high school, or (ii)
was last enrolled in high school); and
[...] (ii) (C) The player has graduated from high school in the United States,
did not enroll in a four-year college or university in the United States,
and four (4) calendar years have elapsed since such player’s high school
graduation [...]
● Attended but did
not graduate from an American high school, but four calendar years have passed
since the class they would have graduated with ⓘArticle
X (Player Eligibility and NBA Draft) Section 1 (Player Eligibility):
(b) A player shall be eligible for selection in the first NBA Draft with respect
to which he has satisfied all applicable requirements of Section 1(b)(i) below
and one of the requirements of Section 1(b)(ii) below:
(i) The player (A) is or will be at least nineteen (19) years of age during
the calendar year in which the Draft is held, and (B) with respect to a player
who is not an “international player” (defined below), at least one (1)
NBA Season has elapsed since the player’s graduation from high school (or,
if the player did not graduate from high school, since the later of the graduation
of the class with which the player would have graduated based on the high
school class he was in when he (i) first enrolled in high school, or (ii)
was last enrolled in high school); and
(ii) (D) The player did not graduate from high school in the United States,
and four (4) calendar years have elapsed since the graduation of the class
with which the player would have graduated had he graduated from high school
[...]
● Will be at least
22 during the draft year, have signed a professional basketball contract outside
the NBA (a "non-NBA professional basketball contract"; see below),
and actually played under that contract before the 1st January preceding the
draft ⓘArticle X (Player Eligibility and
NBA Draft) Section 1 (Player Eligibility):
(b) A player shall be eligible for selection in the first NBA Draft with respect
to which he has satisfied all applicable requirements of Section 1(b)(i) below
and one of the requirements of Section 1(b)(ii) below:
(i) The player (A) is or will be at least nineteen (19) years of age during
the calendar year in which the Draft is held, and (B) with respect to a player
who is not an “international player” (defined below), at least one (1)
NBA Season has elapsed since the player’s graduation from high school (or,
if the player did not graduate from high school, since the later of the graduation
of the class with which the player would have graduated based on the high
school class he was in when he (i) first enrolled in high school, or (ii)
was last enrolled in high school); and
[...] (ii) (E) The player is or will be at least twenty-two (22) years of
age during the calendar year of the Draft, has signed a “non-NBA professional
basketball contract” (defined below), and has rendered services under such
contract prior to the January 1 immediately preceding such Draft [...]
● Is an international
player, and will be at least 22 during the draft year (which is how your humble
English narrator can be said to have gone undrafted in 2006 despite not playing
basketball at any point) ⓘArticle X (Player
Eligibility and NBA Draft) Section 1 (Player Eligibility):
(b) A player shall be eligible for selection in the first NBA Draft with respect
to which he has satisfied all applicable requirements of Section 1(b)(i) below
and one of the requirements of Section 1(b)(ii) below:
(i) The player (A) is or will be at least nineteen (19) years of age during
the calendar year in which the Draft is held, and (B) with respect to a player
who is not an “international player” (defined below), at least one (1)
NBA Season has elapsed since the player’s graduation from high school (or,
if the player did not graduate from high school, since the later of the graduation
of the class with which the player would have graduated based on the high
school class he was in when he (i) first enrolled in high school, or (ii)
was last enrolled in high school); and
[...] (ii)(F) The player is or will be twenty-two (22) years of age during
the calendar year of the Draft and is an international player [...]
● They entered early,
by "declaring" for the draft. ⓘArticle
X (Player Eligibility and NBA Draft) Section 1 (Player Eligibility):
(b) A player shall be eligible for selection in the first NBA Draft with respect
to which he has satisfied all applicable requirements of Section 1(b)(i) below
and one of the requirements of Section 1(b)(ii) below:
(i) The player (A) is or will be at least nineteen (19) years of age during
the calendar year in which the Draft is held, and (B) with respect to a player
who is not an “international player” (defined below), at least one (1)
NBA Season has elapsed since the player’s graduation from high school (or,
if the player did not graduate from high school, since the later of the graduation
of the class with which the player would have graduated based on the high
school class he was in when he (i) first enrolled in high school, or (ii)
was last enrolled in high school); and
[...] (ii)(G) The player has expressed his desire to be selected in the Draft
in a writing received by the NBA at least sixty (60) days prior to such Draft
(an “Early Entry” player).
The first six of those would all make a player "automatically eligibile". College seniors and 22-year-old international players, generally. The last are the "Early Entry" players, and in the modern era, the big names in any draft pool are almost always early entrants.
Early entrants
If you follow the above to the letter, you will notice that a player can only go through at most an initial draft and a subsequent draft before entering free agency. However, an Early Entry player could in theory be drafted years before he would otherwise have been automatically draft-eligible. In theory, they could therefore go through more than two drafts. The CBA therefore accounts for this, and modifies the normal rules to account for that -
If an Early Entry player is drafted and does not subsequently return to college basketball, the team that drafted him retains the exclusive right to negotiate and sign him until the draft in which he would otherwise have first been eligible to enter. To keep those rights, the team must make a Required Tender each year by the applicable deadline. For these purposes, the draft in which the player would normally have first been eligible is treated as his "Subsequent Draft," and the normal rules governing players in a Subsequent Draft apply. If the player still has not signed with the drafting team despite receiving the Required Tender, and then goes unselected in that Subsequent Draft, he becomes a Rookie Free Agent.
For example, suppose a player enters
the draft at age 19 even though he otherwise would not have become automatically
draft-eligible until two years later. If he does not return to college, the
team that drafted him can retain exclusive NBA rights to him until that later
draft occurs, provided it continues making the required tenders. If he remains
unsigned and is not selected in that later draft, he becomes a free agent.
The rules are different if the Early Entry player returns to college basketball
after being drafted. In that case, the drafting team retains exclusive NBA
rights to him until one year after the draft in which he would otherwise have
first become draft-eligible. Again, the team must continue making Required
Tenders each year. For these players, the draft in which they would normally
have become eligible is treated as their "Initial Draft," and the
following year's draft is treated as their "Subsequent Draft." After
that point, the normal rules governing players who have gone through a Subsequent
Draft apply.
The final subsection provides that an Early Entry player cannot shorten the
drafting team's control over his NBA rights by signing with a non-NBA team.
Even if the player signs overseas or elsewhere outside the NBA, the period
during which only the drafting team may negotiate and sign him remains unchanged.
To enter early, a player must submit
their name at least 60 days before the draft, and Early Entry players can
later withdraw from that draft if they notify the NBA at least 10 days before
it. A player can only withdraw from the draft twice in total. ⓘArticle
X (Player Eligibility and NBA Draft) Section 8 (General):
(c) An Early Entry player who is eligible to be selected in the next NBA Draft
pursuant to Section 1(b)(ii)(G) above shall be entitled to withdraw from such
Draft by providing written notice that is received by the NBA ten (10) days
prior to such Draft. A player shall not be entitled to withdraw from more
than two (2) NBA Drafts.
Draft-related definitions
The above there makes frequent reference to the concept of an "international player", but it is important to define what one is.
A draft candidate is considered international only if all three of the following are true:
● He has lived permanently outside the United States for the previous three years while playing basketball
● He has never enrolled in a U.S. college or university
● He did not complete high school in the United States
If any of these conditions is missing,
the player is not considered an international player for draft purposes. They
may well still be eligible under the other strands above, but an "international
player" in a draft, for CBA purposes, must be all three of those things.
ⓘArticle X (Player Eligibility
and NBA Draft) Section 1 (Player Eligibility):
(c) For purposes of this Article X, an “international player” is a player:
(i) who has maintained a permanent residence outside of the United States
for at least the three (3) years prior to the Draft, while participating in
the game of basketball as an amateur or as a professional outside of the United
States; (ii) who has never previously enrolled in a college or university
in the United States; and (iii) who did not complete high school in the United
States.
Similarly, a "non-NBA professional
contract" (see above) is any agreement with a basketball team or league
outside the NBA (in the CBA's verbiage, a "non-NBA basketball team or
league"; see below) where the player receives compensation beyond basic
living-expense stipends. ⓘArticle
X (Player Eligibility and NBA Draft) Section 1 (Player Eligibility):
(d) For purposes of this Article X: (i) A "non-NBA professional basketball
contract" means a contract between a player and any non-NBA basketball team
or league pursuant to which the team or league pays money or compensation
of any kind in excess of a stipend for living expenses to the player for
rendering services to a basketball team.
And finally, to get all meta and
define a definition, a non-NBA basketball team or league means
any team or league that compensates in any fashion a player for their playing
talent in excess of a stipend for living expenses. ⓘArticle
X (Player Eligibility and NBA Draft) Section 1 (Player Eligibility):
(d) (ii) A “professional basketball team or league not in the NBA” means
any team or league that pays money or compensation of any kind " in excess
of a stipend for living expenses " to a basketball player for rendering
services to such team and/or league.
The rookie scale
When players are drafted in the first round, their first NBA contract - if they sign one - will almost always be equal to the value of something called the Rookie Scale. This system, which largely predetermines salary amounts for first-round picks while also presenting a whole bunch of anomalies to the rest of the salary cap's rules, is dense enough to merit its own page.
Draft rights
When a team drafts a player, they have an exclusive window during which only that team can negotiate with or sign the player. They can also use those rights in trade, and often do. However, the team must preserve those rights by meeting certain conditions, and from there, it all gets a bit complicated. See the Draft Rights page for the intricacies of the process..
Draft combine
The NBA does not mess around with
its Draft
Combine, which is somewhat sacrosanct. It is to the point that if a player
is invited to the Draft Combine and the NBA (in conjunction with the Players
Association) decides he did not fully participate, they become ineligible
for the first draft after the Combine (i.e. the one the combine was for).
If the player concerned was an Early Entry player, they are treated as if
they withdrew from the draft even if they have already used up their withdrawal
limit; if they were not an Early Entry player, they are treated as eligible
for the next draft instead. The NBA must declare the player's ineligibility
at least 10 days before the draft - leaving it later than that is too late.
ⓘArticle X (Player Eligibility
and NBA Draft) Section 9 (NBA Draft Combine):
(a) Notwithstanding any other provision of this Agreement, any player invited
by the NBA to attend the Draft Combine who is reasonably determined by the
NBA in consultation with the Players Association to have failed to fulfill
his obligation to fully participate in the Draft Combine in accordance with
Article XXII, Section 14 shall be ineligible for selection in the NBA Draft
immediately following such Draft Combine.
(b) If a player is ineligible for selection in a Draft pursuant to Section
9(a) above and such player is:
(i) an Early Entry player, then he will be deemed to have withdrawn from such
Draft in accordance with Section 8(c) above (even if such player had previously
withdrawn, or had previously been deemed to have withdrawn, from two (2) or
more NBA Drafts); or
(ii) not an Early Entry player, then he will be deemed to meet the criteria
set forth in Section 1(b) or Section 4(a) above, as applicable, in respect
of the Draft immediately following such Draft.
For clarity, (x) consistent with Section 1(a) above, any player ineligible
for selection in a Draft pursuant to Section 9(a) above may not sign a Contract
or play in the NBA at any time following such Draft until he has been eligible
for selection in at least one (1) NBA Draft following the Draft for which
the player was ineligible for selection pursuant to Section 9(a) above, and
(y) any player ineligible for selection in a Draft pursuant to Section 9(a)
above shall remain subject to the provisions of Article XXII, Section 14,
and Section 9(a) above, in respect of any future Draft Combine in which the
player is invited by the NBA to participate following the Draft for which
the player was ineligible for selection pursuant to Section 9(a) above.
If a player disagrees with the
NBAs decision that they failed the combine and made ineligible for the
draft, that is a Combine-Related Eligibility Dispute, and a case
by the NBPA (but only the NBPA, and with the player's approval) can bring
the case to a special arbitrator. The case must be filed within two days,
the hearing must take places within three days (by video conference), and
must not last more than one day. If the player wins, they get their eligibility
back, but there are to be no further penalties..Even if someone is disputing
eligibility: The NBA can still run the draft normally. Deadlines can be adjusted
NBA and Players Association can agree to modify deadlines if needed. ⓘArticle
X (Player Eligibility and NBA Draft) Section 10 (Combine-Related Eligibility
Disputes):
(a) Notwithstanding any other provision of this Agreement, the procedures
set forth in this Section 10 shall apply to the resolution of a dispute regarding
a determination by the NBA, in accordance with Section 9(a) above, that a
player invited by the NBA to attend the Draft Combine has failed to fulfill
his obligation to fully participate in the Draft Combine in accordance with
Article XXII, Section 14 and therefore is ineligible for selection in the
NBA Draft immediately following such Draft Combine (any such dispute, a “Combine-Related
Eligibility Dispute”). If in connection with any such Combine-Related Eligibility
Dispute, there is any conflict between the procedures set forth in this Section
10 and those set forth elsewhere in this Agreement, the procedures set forth
in this Section shall control.
(b) Any Combine-Related Eligibility Dispute may be initiated, as set forth
below, only by the Players Association, except that the Players Association
may not initiate a Combine-Related Eligibility Dispute without the approval
of the player concerned. Combine-Related Eligibility Disputes shall be heard
by the System Arbitrator.
(c) Any determination that a player is ineligible for selection in an NBA
Draft in accordance with Section 9(a) above must be made no later than the
day that is ten (10) days prior to the date of such Draft.
(d) A Combine-Related Eligibility Dispute must be brought by the Players Association
within two (2) days of the date of the eligibility determination by the NBA.
The Players Association may initiate a Combine-Related Eligibility Dispute
by serving a written notice thereof on the NBA, with a copy of such written
notice to be filed with the System Arbitrator. Such written notice shall be
accompanied by a witness list, relevant documents, and other evidentiary materials
on which the Players Association intends to rely in its affirmative case.
No later than the second day following the date on which the NBA received
written notice of the Dispute, the NBA shall provide to the Players Association
a witness list, relevant documents, and other evidentiary materials on which
the NBA intends to rely in its affirmative case. Absent a showing of good
cause, neither the Players Association nor the NBA may proffer, refer to,
or rely on the testimony of any witness, document, or other evidentiary material
in its affirmative case that has not been identified to the other side as
required by this Section 10(d).
(e) The System Arbitrator shall convene a hearing within three (3) days of
the System Arbitrator’s receipt of the NBA’s submission of its witness
list, relevant documents, and other evidentiary materials. The hearing shall
take place by videoconference and shall last no longer than one (1) day. The
Players Association and the NBA shall each have the right to participate in
the hearing. The player whose eligibility is the subject of the proceeding
shall have the right to attend the hearing.
(f) The System Arbitrator shall render a decision within one (1) day following
the date of the hearing, and the decision shall be accompanied by a written
opinion. Notwithstanding the foregoing, if the System Arbitrator determines
that expedition so requires, he/she shall accompany the decision with a written
summary of the grounds upon which the decision is based, and a full written
opinion may follow within a reasonable time thereafter. The decision of the
System Arbitrator shall constitute full, final, and complete disposition of
the dispute and shall be binding upon the parties to this Agreement and the
player, and there shall be no appeal to the Appeals Panel.
(g) If the Players Association prevails in the proceeding, the sole remedy
shall be that the player is deemed eligible for the Draft in respect of which
the dispute was brought.
(h) For clarity, any ongoing dispute regarding a player’s Draft eligibility
shall not affect the NBA’s scheduling or operation of, or right to hold,
the Draft.
(i) Should circumstances warrant, each of the deadlines set forth in this
Section 10 may be reasonably modified by agreement of the NBA and Players
Association.
Threshold Tax calculations Tax Rates Repeater tax Rebates
MAIN TAKEAWAYS:
- The more your team are over the luxury tax threshold, the more your team will pay.
- The more regularly your team is over the luxury tax threshold, the more your team will pay, too.
- Teams under the tax threshold not only avoid penalty, but get rebates, which do not change their salary cap picture but which do improve the cash position.
- In addition to the luxury tax - whose effectiveness as a payroll deterrent had dwindled in light of the Golden State Warriors' extravagant spending - the NBA has recently introduced the "apron" thresholds, which exist in addition to the tax, and which are designed to reduce excessive spending not just through extra payments but through reduced spending options. See the Aprons page for more.