The CBA Glossary

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Article VI

ARTICLE VI
PLAYER CONDUCT
Section 1.

Games.

(a) In addition to any other rights a Team or the NBA may have by
contract (including but not limited to the rights set forth in Paragraphs 9
and 16 of the Uniform Player Contract) or by law:
(i)

When a player (A) fails or refuses, without proper and
reasonable cause or excuse, to render the services required
by a Player Contract or this Agreement, or (B) is suspended
by his Team or the NBA for failing or refusing, without
proper and reasonable cause or excuse, to render the services
required by a Player Contract or this Agreement, the Current
Base Compensation payable to the player for the year of the
Contract during which such failure or refusal and/or
suspension occurs shall be reduced by 1/91.6th of the
player’s Base Compensation for each missed Exhibition,
Regular Season, Play-In, or playoff game; and

(ii)

When a player is, for proper cause other than the player’s
failure or refusal to render the services required by a Player
Contract or this Agreement, suspended by his Team or the
NBA in accordance with the terms of such Contract or this
Agreement, the Current Base Compensation payable to the
player for the year of the Contract during which such
suspension occurs shall be reduced by (i) 1/145th of the
player’s Base Compensation for each missed Exhibition,
Regular Season, Play-In, or playoff game for any suspension
of fewer than twenty (20) games and (ii) 1/110th of the
player’s Base Compensation for each missed Exhibition,
Regular Season, Play-In, or playoff game for any suspension
of twenty (20) games or more (including any indefinite
suspension that persists for twenty (20) games or more or
consecutive suspensions for continuing acts or conduct that
persist for twenty (20) games or more).

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(b) Notwithstanding Section 1(a)(ii) above, for the first game in a Season
for which a player is suspended by the NBA, if such suspension is for
conduct on the playing court (as that term is defined in Article XXXI,
Section 9(c)) and is a one-game suspension, the Current Base Compensation
payable to the player for the year of the Contract during which such
suspension occurs shall be reduced by an amount equal to the player’s
Current Base Compensation for such Season multiplied by a fraction, the
numerator of which is one (1) and the denominator of which is the number
of days in the Regular Season. For clarity, for any other game for which
such player is suspended by his Team or the NBA during such Season, the
Current Base Compensation payable to the player for the year of the
Contract during which such suspension occurs shall be reduced in
accordance with Section 1(a) above.
(c) In the event that, at the start of a Regular Season, (x) a player is a
Free Agent who has games remaining to be served on a suspension that was
previously imposed on him by the NBA either when he was under a
Contract with a Team or when he was a Free Agent, and (y) such player, but
for the remainder of the suspension to be served, is otherwise eligible and
able to play, then:
(i)

The player’s suspension shall be deemed to have been served
as of the day following the day on which the Team to which
he was under contract when the suspension was imposed
(or, if he was not under contract when the suspension was
imposed, the last Team to which he was under contract prior
to the suspension being imposed) has played a number of
games in such Regular Season equal to one and one-half (1.5)
times the number of games that remained to be served on
the term of the suspension as of the first day of such Regular
Season (rounded up to the nearest whole number); and

(ii)

If the player subsequently signs one or more Player
Contracts, the Current Base Compensation payable to the
player for such Season (or, if he does not sign a Player
Contract during such Regular Season, the first subsequent
Season thereafter for which he signs a Player Contract)
under one or more Contracts shall be reduced in accordance
with Section 1(a) above for the number of games that

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remained to be served on the term of the suspension as of
the first day of such Regular Season.

For clarity, if a player is a Free Agent on the first day of such Regular Season
and subsequently signs a Player Contract before his suspension has been
deemed to have been served pursuant to Section 1(c)(i) above, the number
of games of the suspension that will be deemed to have been served as of
the date he signs such Player Contract shall equal two-thirds (2/3) of the
number of games played by his prior Team in such Regular Season as of the
date he signs such Player Contract (rounded to the nearest whole number).
Section 2.

Practices.

(a) When a player, without proper and reasonable excuse, fails to attend
a practice session scheduled by his Team, he shall be subject to the following
discipline: (i) for the first missed practice during a Season - $2,500; (ii) for
the second missed practice during such Season - $5,000; (iii) for the third
missed practice during such Season - $7,500; and (iv) for the fourth (or any
additional) missed practice during such Season - such discipline as is
reasonable under the circumstances.
(b) Notwithstanding Section 2(a) above, when a player, without proper
and reasonable excuse, refuses or intentionally fails to attend any practice
session scheduled by his Team, he shall be subject to such discipline as is
reasonable under the circumstances.
Section 3.

Promotional Appearances.

When a player, without proper and reasonable excuse, fails or refuses to
attend a promotional appearance required by and in accordance with
Article II, Section 8 and Paragraph 13(d) of the Uniform Player Contract,
he shall be fined $20,000.
Section 4.

Mandatory Programs.

(a) NBA players shall be required to attend and participate in
educational and life skills programs designated as “mandatory programs” by
the NBA and the Players Association. Such “mandatory programs,” which
shall be jointly administered by the NBA and the Players Association, shall
include a Rookie Transition Program (for rookies only), Team Awareness
Meetings (which shall cover, among other things, substance abuse

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awareness, HIV awareness, gambling awareness, healthy relationships,
mental health and wellness programming, and recommendations and
educational materials regarding the health benefits of vaccinations
recommended by the Centers for Disease Control and Prevention (CDC)),
and such other programs as the NBA and the Players Association shall
jointly designate as mandatory.
(b) When a player, without proper and reasonable excuse, fails or
refuses to attend a “mandatory program,” he shall be fined $20,000 by the
NBA; provided, however, that if the player misses the Rookie Transition
Program, he shall be suspended for five (5) games.
(c) Each year, the NBA and Players Association shall work together to
(i) identify players who did not attend a Rookie Transition Program (for
rookies only) or a Team Awareness Meeting covering information relating
to the Anti-Drug Program (e.g., because the player was signed to a Contract
after such Team Awareness Meeting took place), and (ii) as soon as
practicable, provide any such player with educational materials regarding the
Anti-Drug Program.
Section 5.

Media Training, Business of Basketball, Anti-Gambling
Training, and System Rules Training.

(a) All players shall be required each Season to attend and participate in
one (1) media training session conducted by their Team and/or the NBA.
If a player, without proper and reasonable excuse, fails or refuses to attend
a media training session, he shall be fined $20,000.
(b) All players shall be required each Season to attend and participate in
one (1) “business of basketball” program conducted by the Team and/or
the NBA. If a player, without proper and reasonable excuse, fails or refuses
to attend such program, he shall be fined $5,000. Each Team’s Governor
shall attend his or her Team’s annual “business of basketball” program.
(c) All players shall be required each Season to attend and participate in
one (1) anti-gambling training session conducted by their Team and/or the
NBA. If a player, without proper and reasonable excuse, fails or refuses to
attend an anti-gambling training session, he shall be fined $100,000. Each
year, the NBA and Players Association shall work together to (i) identify
players who did not attend a Rookie Transition Program (for rookies only)

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or the anti-gambling training session, and (ii) as soon as practicable, provide
any such player with educational materials with information from such
training session. In addition, each year the NBA shall work with the
NBAGL to ensure that players in the NBAGL are provided with the same
anti-gambling training that is provided to NBA players.
(d) Each year, the NBA and Players Association will jointly make
available to players training on System rules (e.g., online or by
videoconference).
Section 6.

Charitable Contributions.

(a) In the event that (i) a fine or suspension is imposed on a player,
(ii) such fine or suspension-related Compensation amount is collected by
the League, and (iii) the fine or suspension is not grieved pursuant to
Article XXXI, then the NBA shall remit fifty percent (50%) of the amount
collected to the National Basketball Players Association Foundation (the
“NBPA Foundation”) or such other charitable organization selected by the
Players Association that qualifies for treatment under Section 501(c)(3) of
the Internal Revenue Code of 1986, as now in effect or as it may hereafter
be amended (a “Section 501(c)(3) Organization”), and that is approved by
the NBA (which approval shall not be unreasonably withheld) (both
hereinafter, the “NBPA-Selected Charitable Organization”); provided,
however, that any contributions made by the NBPA-Selected Charitable
Organization to a player charitable foundation cannot be intended to
reimburse the player for the financial impact of a fine or suspension. The
NBA shall remit the remaining fifty percent (50%) of the amount collected
to a Section 501(c)(3) Organization selected by the NBA and approved by
the Players Association, which approval shall not be unreasonably withheld.
For purposes of this Section 6(a), and with respect to any suspension
imposed on a player by the NBA of five (5) games or more, the NBA shall
be required to collect a suspension-related Compensation amount equal to
at least five (5) games of such suspension.
(b) The remittances made by the NBA pursuant to this Section 6 shall
be made annually, ninety (90) days following the Accountants’ (as defined in
Article VII, Section 10(a)) submission to the NBA and the Players
Association of a final Audit Report or an Interim Designated Share Audit
Report (as defined in Article VII, Section 10(a)(1)) for the Salary Cap Year

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covering the Season during which the fines and suspension-related
Compensation amounts are collected by the NBA.
(c) If a timely Grievance is filed under Article XXXI challenging a fine
or suspension of the kind designated in Section 6(a) above, and, following
the disposition of the Grievance, the Grievance Arbitrator determines that
all or part of the fine or suspension-related amount (plus any accrued interest
thereon) is payable by the player to the League, then the League shall remit
the amount collected by the League (plus any interest) in accordance with
the provisions of Sections 6(a) and (b) above.
Section 7.

Unlawful Violence.

When a player is convicted of (including by a plea of guilty, no contest,
or nolo contendere to) a violent felony, he shall immediately be suspended
by the NBA for a minimum of ten (10) games.
Section 8.

Counseling for Violent Misconduct.

(a) In addition to any other rights a Team or the NBA may have by
contract or law, when the NBA and the Players Association agree that there
is reasonable cause to believe that a player has engaged in any type of
off-court violent conduct, the player will (if the NBA and the Players
Association so agree) be required to undergo a clinical evaluation by a
neutral expert and, if deemed necessary by such expert, appropriate
counseling, with such evaluation and counseling program to be developed
and supervised by the NBA and the Players Association, unless the player
has engaged in acts covered by the Joint NBA/NBPA Policy on Domestic
Violence, Sexual Assault, and Child Abuse, in which case the terms of that
Policy shall apply. For purposes of this paragraph, “violent conduct” shall
include, but not be limited to, any conduct involving the use or threat of
physical violence or the use of, or threat to use, a deadly weapon, any
conduct which could be categorized as a “hate crime,” and any conduct
involving dog fighting or animal cruelty.
(b) Any player who is convicted of (including by a plea of guilty, no
contest, or nolo contendere to) a crime involving violent conduct shall be
required to attend at least five (5) counseling sessions with a therapist or
counselor jointly selected by the NBA and the Players Association, unless
the player has engaged in acts covered by the Joint NBA/NBPA Policy on

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Domestic Violence, Sexual Assault, and Child Abuse, in which case the
terms of that Policy shall apply. These sessions shall be in addition to any
discipline imposed on the player by the NBA for the conduct underlying his
conviction. The therapist or counselor who is jointly selected by the NBA
and the Players Association shall determine the total number of counseling
sessions to be attended by the player; however, in no event shall a player be
required to attend more than ten (10) sessions.
(c) Any player who, after being notified in writing by the NBA that he
is required to undergo the clinical evaluation and/or counseling program
authorized by Section 8(a) or 8(b) above, refuses or fails, without a
reasonable explanation, to attend or participate in such evaluation and
counseling program within seventy-two (72) hours following such notice,
shall be fined by the NBA in the amount of $10,000 for each day following
such seventy-two (72) hours that the player refuses or fails to participate in
such program.
Section 9.

Firearms and Other Weapons.

(a) Whenever a player is physically present at a facility or venue owned,
operated, or being used by a Team, the NBA, or any League-related entity,
and whenever a player is traveling on any NBA-related business, whether on
behalf of the player’s Team, the NBA, or any League-related entity, such
player shall not possess a firearm of any kind or any other deadly weapon.
For purposes of the foregoing, “a facility or venue” includes, but is not
limited to: an arena; a practice facility; a Team or League office or facility; a
facility or venue used for an NBA event (such as an In-Season Tournament,
All-Star, or NBA playoff venue); and the site of a promotional or charitable
appearance.
(b) At the commencement of each Season, and if the player owns or
possesses any firearm, the player will provide the Team with proof that the
player possesses a license or registration as required by law for any such
firearm. Each player is also required to provide the Team with proof of any
modifications or additions made to this information during the Season.
(c) Any violation of Section 9(a) or Section 9(b) above shall be
considered conduct prejudicial to the NBA under Article 35(d) of the NBA
Constitution and By-Laws, and shall therefore subject the player to
discipline by the NBA in accordance with such Article.

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Section 10. One Penalty.
(a) The NBA and a Team shall not discipline a player for the same act
or conduct. The NBA’s disciplinary action will preclude or supersede
disciplinary action by any Team for the same act or conduct.
(b) When the NBA becomes aware of any potential or actual
disciplinary action which may be or has been imposed by a Team for a
player’s act or conduct, the NBA may, within forty-eight (48) hours, prohibit
the discipline from being imposed or rescind the discipline that has been
imposed, as applicable. If the NBA prohibits or rescinds the discipline, only
the NBA shall thereafter be permitted to impose discipline on the player for
that act or conduct. If the NBA does not prohibit or rescind the Team’s
discipline, the Team may impose its proposed discipline or the Team’s
discipline will remain in effect, as applicable, and, if the Team’s discipline
becomes effective or remains in effect, the NBA may not thereafter impose
discipline on the player for that act or conduct.
(c) Notwithstanding anything to the contrary contained in Section 10(a)
or 10(b), (i) the same act or conduct by a player may result in both a
termination of the player’s Uniform Player Contract by his Team and the
suspension of the player by the NBA if the egregious nature of the act or
conduct is so lacking in justification as to warrant such double penalty, and
(ii) both the NBA and the Team to which a player is traded may impose
discipline for a player’s failure to report for a trade in accordance with
Paragraph 10(d) of the Uniform Player Contract.
Section 11. League Investigations.
(a) Players are required to cooperate with investigations of alleged
player misconduct conducted by the NBA. Failure to so cooperate, in the
absence of a reasonable apprehension of criminal prosecution, will subject
the player to reasonable fines and/or suspensions imposed by the NBA.
Any investigations of alleged misconduct that is covered by the Joint
NBA/NBPA Policy on Domestic Violence, Sexual Assault, and Child
Abuse shall be governed by the terms of that Policy.
(b) Except as set forth in Section 11(c) below, the NBA shall provide
the Players Association with such advance notice as is reasonable in the
circumstances of any interview or meeting to be held (in person or by
telephone) between an NBA representative and a player under investigation

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by the NBA for alleged misconduct, and shall invite a representative of the
Players Association to participate or attend. The failure or inability of a
Players Association representative to participate in or attend the interview
or meeting, however, shall not prevent the interview or meeting from
proceeding as scheduled. A willful disregard by the NBA of its obligation
to notify the Players Association as provided for by this Section 11(b) shall
bar the NBA from using as evidence against the player in a proceeding
involving such alleged misconduct any statements made by the player in the
interview or meeting conducted by the NBA representative.
(c) The provisions of Section 11(b) above shall not apply to interviews
or meetings: (i) held by the NBA as part of an investigation with respect to
alleged player misconduct that occurred at the site of a game; and (ii) which
take place during the course of, or immediately preceding or following, such
game. With respect to any such interview or meeting, the NBA’s only
obligation shall be to provide notice to the Players Association that the NBA
will be conducting an investigation and holding an interview or meeting in
connection therewith. Such notice may be given by telephone at a telephone
number or by email at an email address to be designated in writing by the
Players Association.
Section 12. On-Court Conduct.
(a) The parties have agreed to all of the rules governing the conduct of
players on the playing court (as that term is defined in Article XXXI,
Section 9(c) below) that are contained in the Player Conduct, NBA Uniform
Requirements, Dress Code, and Other Player-Related Matters Memo
distributed by the NBA and dated June 1, 2023. Beginning with the 2023-24
Season, the NBA and the Players Association will bargain over any new rules
governing the conduct of players on the playing court (including disciplinary
penalties associated therewith) or any change to the agreed-upon rules
governing the conduct of players on the playing court (including disciplinary
penalties associated therewith); provided, however, that this obligation to
bargain does not apply to the official playing rules of the NBA (or any
change or modification thereof) or any rule affecting the integrity of the
game or game play (or any change or modification thereof), except with
respect to any change or modification to the disciplinary penalties associated
with a player’s violation of such rules.

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(b) Nothing in Section 12(a) above shall be construed to modify or alter
(i) the NBA’s existing disciplinary authority in this Agreement or Article 35
of the NBA Constitution governing the conduct of players on the playing
court (as that term is defined in Article XXXI, Section 9(c) below),
including, but not limited to, the NBA’s ability to provide notice to players
that it regards a type of on-court conduct to be violative of its disciplinary
standards, (ii) the NBA’s existing disciplinary authority in this Agreement
and/or Article 35 of the NBA Constitution governing off-court conduct, or
(iii) Article XXXVII, Section 2 of this Agreement governing player
uniforms.
(c) Prior to the imposition of a suspension on a player for conduct on
the playing court (as defined in Article XXXI, Section 9(c)), the player will
have the opportunity to request a telephonic meeting with the President,
League Operations, the Executive Vice President, Basketball Operations, or
their designee to discuss the incident and be heard as to why a suspension is
unwarranted; provided, however, that the player must promptly notify the
NBA of his desire for such a meeting, which will be scheduled to take place
within a reasonable time period that will not interfere with the NBA’s
investigatory process and will not preclude the NBA from issuing a
suspension prior to the player’s next game. Notice to the player of a possible
suspension may be given by the NBA to the Players Association by
telephone at a telephone number or by email at an email address to be
designated in writing by the Players Association. Notice by the player of his
request for a meeting pursuant to this Section 12(c) may be provided
through the Players Association on the player’s behalf, and a representative
of the Players Association may participate in any such telephone call. The
NBA will consider any information provided during the meeting before
finalizing its decision; provided, however, that nothing contained herein will
require the NBA to alter its disciplinary decision or affect any rights the
player has under Article XXXI to appeal that decision.
Section 13. Off-Court Conduct.
Following the imposition of discipline on a player by the NBA for
off-court conduct, and upon request by the Players Association, the NBA
shall identify for the Players Association the key evidence or other materials
upon which the disciplinary decision was based. The foregoing obligation,
including, but not limited to, the NBA’s provision of such information and
the extent or nature of the information provided, shall be without prejudice

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to the NBA, including by not limiting the evidence or other materials upon
which the NBA may rely in any proceeding relating to the discipline
imposed.
Section 14. Motor Vehicles.
At the commencement of each Season, and if the player owns or operates
any motor vehicle, the player will provide the Team with proof that the
player possesses a valid driver’s license, registration documents, and
insurance for any such vehicle. For players who sign Player Contracts during
the Season, the player will provide the Team with such information within
fourteen (14) days following the execution of his Contract. Each player is
also required to provide the Team with proof of any modifications or
additions made to this information during the Season.
Section 15. Player Convictions and Other Discipline Involving
Alcohol or Controlled Substances.
(a) In addition to any other discipline imposed by the NBA for such
conduct, any player who is convicted of (including by a plea of guilty, no
contest, or nolo contendere to) driving while intoxicated, driving under the
influence, driving under the influence of a controlled substance (if that
controlled substance is not a Prohibited Substance) or any similar crime shall
be required to submit to a mandatory evaluation by the Medical Director of
the Anti-Drug Program. After that mandatory evaluation, the Medical
Director may require the player to attend up to ten (10) substance abuse
counseling sessions.
(b) No player shall use any Marijuana Product (defined below) while he
is physically present at a facility or venue owned, operated, or being used by
a Team, the NBA, or any Team- or League-related entity. Any violation of
this Section 15(b) shall subject the player to discipline as is reasonable under
the circumstances. With respect to discipline imposed by the NBA and/or
the Team, the One Penalty rule set forth in Article VI, Section 10 of this
Agreement shall apply.
Section 16. Player Arrests.
A Team shall not impose discipline on a player solely on the basis of the
fact that the player has been arrested. Notwithstanding the foregoing, (a) a
Team may impose discipline on a player for the conduct underlying the

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player’s arrest if it has an independent basis for doing so, (b) nothing herein
shall permit a Team to discipline a player for his failure to cooperate with a
Team’s investigation of his alleged misconduct if he has a reasonable
apprehension of criminal prosecution, and (c) nothing herein shall prevent
a Team from precluding a player from participating in Team activities
without loss of pay to the extent it otherwise has the right to do so.
Section 17. Joint NBA/NBPA Policy on Domestic Violence, Sexual
Assault, and Child Abuse.
The parties have agreed to the Joint NBA/NBPA Policy on Domestic
Violence, Sexual Assault, and Child Abuse (and any amendments thereto),
which is attached as Exhibit F hereto. Any evaluation, counseling,
treatment, and/or discipline of a player for engaging in acts covered by this
Policy shall be governed by the terms of the Policy.
Section 18. Trades.
Any player (or, for clarity, any player representative or person acting with
authority on behalf of a player) who publicly expresses a desire to be traded
to another Team shall be subject to a fine and/or a suspension. The
maximum fine that may be imposed by the NBA on a player pursuant to the
foregoing shall be $150,000.
Section 19. Player Involvement with Gaming Companies.
(a) As used in this Section 19, the following terms shall have the
following meanings:
(i)

“Gaming Company” means a Sports Betting Company, a
Fantasy Sports Company, or any other entity that offers
contests, wagers, or other transactions on which consumers
can put money or other things of value at risk and the
outcome of which is determined, in whole or in part, based
upon the performance of NBA League players or NBA
League teams in NBA League games or events.

(ii)

“Sports Betting Company” means an entity (A) that directly
or indirectly offers, accepts, or facilitates wagering related to
sporting events, or (B) whose operations are substantially

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dedicated to content related to wagering on NBA and other
sporting events.
(iii) “Fantasy Sports Company” means an entity that offers or
facilitates contests in which participants submit entries in a
contest (season-long, daily, or single-game), comprised of
one or more selected teams or players, with the winning
entries determined by the performance or statistics of the
selected teams or players.
(iv) “NBA League” means the NBA, WNBA, NBAGL, NBA
2K League, Basketball Africa League, and any other league
associated with the NBA.

(b) Investment in Gaming Companies.
(i)

Subject to Article XIII, a player may hold a direct or indirect
ownership interest in a Gaming Company only if:
(A) Such interest is passive (i.e., includes no
management, governance, voting, or executive role
or other operational rights or roles);
(B)

The player’s ownership interest: (1) for any entity
that offers, accepts, or facilitates NBA
League-related bets, contests, or other transactions,
is equal to less than a one percent (1%) beneficial
interest in any class of securities (or other class of
ownership interests) in the entity (including via a
partnership interest in a fund that owns an interest
in such entity); or (2) for any entity that does not
offer, accept, or facilitate NBA League-related bets,
contests, or other transactions, is less than a fifty
percent (50%) beneficial interest in any class of
securities (or other class of ownership interests) in
the entity (including via a partnership interest in a
fund that owns an interest in such entity); and

(C)

Such interest is held, and such entity operates, in
compliance with all applicable laws and regulations

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relating to sports wagering, fantasy sports contests,
or similar transactions.
(ii)

Any player who holds an ownership interest in a Gaming
Company shall disclose to the League Office (attn: General
Counsel) and the Players Association, within 30 days of
acquiring such interest, (A) the identity of the Gaming
Company in which the player holds such interest, and (B)
the percentage of the Gaming Company’s overall ownership
such interest represents.

(c) Promotion and Endorsement of Gaming Companies.
(i)

Subject to Article XIII, a player may participate in the
promotion or endorsement of a Gaming Company only if:
(A) Such participation is limited to (1) general brand
promotion or endorsement, or (2) promotion or
endorsement of betting on non-NBA League sports;

(ii)

(B)

Compensation for such participation is not
determined in any respect by NBA League wagering
or outcomes of NBA League games (e.g.,
compensation to the player may not be based on the
amount wagered on NBA League games); and

(C)

Such participation and such Gaming Company’s
operation comply with all applicable laws and
regulations relating to sports wagering, fantasy
sports contests, or similar transactions.
The
operation of a Gaming Company that is party to an
agreement with the NBA or a Team shall, during the
term of such agreement, be deemed in compliance
with this subsection (c)(i)(C).

For clarity, no player may participate in endorsement or
promotional activity of a Gaming Company where such
endorsement or promotion involves NBA League-related
bets or contests.

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(d) For clarity, any investments in or promotions or endorsements of
Gaming Companies not expressly permitted by this Section 19 are
prohibited. In the event a player engages in a prohibited investment,
promotion, or endorsement, then, without limiting other NBA rights or
remedies, the player shall be required to promptly dispose of his ownership
interest in the prohibited investment and/or immediately terminate his
participation in the prohibited promotion or endorsement, as applicable.
Section 20. Player Involvement with Cannabis Companies.
(a) As used in this Section 20, the following terms shall have the
following meanings:
(i)

“CBD” means hemp-derived compounds that have a
concentration of tetrahydrocannabinol (“THC”) at or below
0.3% and contain no other form or amount of cannabis.

(ii)

“CBD Products” means supplements and other products
containing CBD as an ingredient (e.g., oils, creams, drinks,
pills, powders, and roll-ons), but does not mean products
that meet the definition of “Marijuana Products” below or
products containing any substance on the list of Prohibited
Substances set forth in Exhibit I-2 to this Agreement or on
Schedule I or II of the Controlled Substances Act.

(iii)

“Marijuana Company” means an entity that (A) produces or
sells one or more Marijuana Products, including an entity
that produces or sells both CBD Products and one or more
Marijuana Products, and/or (B) produces or sells CBD
Products and has an affiliate that produces or sells one or
more Marijuana Products under the same or a substantially
similar brand as such entity or CBD Products.

(iv)

“Marijuana Products” means supplements and other
products (e.g., flower, oils, creams, drinks, pills, powders, and
roll-ons) containing (A) a non-CBD form of cannabis as an
ingredient, and/or (B) a concentration of THC above 0.3%.
For purposes of this Section 20, any products containing
both CBD and a non-CBD form of cannabis, and any
products containing kratom, shall be Marijuana Products.

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(b) Investment in Cannabis Companies.
(i)

Subject to Section 20(b)(ii) below and Article XIII, a player
may hold a direct or indirect ownership interest (whether
controlling or non-controlling) in an entity that produces or
sells CBD Products, provided that (A) such entity does not
also produce or sell one or more products containing any
Prohibited Substance or any other Schedule I or II
substance under the Controlled Substances Act, and
(B) such interest is held, and such entity operates, in
compliance with all applicable laws and regulations.

(ii)

Subject to Article XIII, a player may hold a direct or indirect
ownership interest in a Marijuana Company, provided that:
(A) Such interest is passive (i.e., includes no
management, governance, voting, or executive role
or other operational rights or roles); and
(B)

The player’s ownership interest is equal to less than
a fifty percent (50%) beneficial interest in any class
of securities (or other class of ownership interests)
in such Marijuana Company (including via a
partnership interest in a fund that owns an interest
in such Marijuana Company); and

(C)

Such interest is held, and such entity operates, in
compliance with all applicable laws and regulations.

(iii) For clarity, except as set forth in Section 20(b)(ii) above, no
player may hold any ownership interest (whether direct or
indirect, including via a partnership interest in a fund) in an
entity that produces or sells any products containing any
Prohibited Substance or any other Schedule I or II substance
under the Controlled Substances Act.
(c) Promotion and Endorsement of Cannabis Companies.
(i)

Subject to Article XIII, a player may participate in the
promotion or endorsement of any brand, product, or service
of an entity that produces or sells CBD Products, provided

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that such entity (A) is not a Marijuana Company, (B) does
not also produce or sell one or more products containing
any Prohibited Substance or any other Schedule I or II
substance under the Controlled Substances Act, and
(C) such participation and such entity’s operation comply
with all applicable laws and regulations.
(ii)

Notwithstanding Section 20(c)(i) above, a player may request
permission from the NBA and the Players Association to
promote or endorse any CBD Products that are produced or
sold by a Marijuana Company. Such request must be in
writing and include (A) a complete list of the products that
the Marijuana Company produces or sells, (B) a complete list
of all ingredients of such products, (C) a description of the
player’s proposed promotion or endorsement activity for the
Marijuana Company’s CBD Products, and (D) a detailed
summary of the non-financial terms of any proposed
promotion or endorsement agreement between the player
and the Marijuana Company. Unless a player’s request has
been approved in writing by the NBA and the Players
Association, the player may not promote or endorse any
CBD Products that are produced or sold by a Marijuana
Company.

(iii)

Upon receiving a player’s written request pursuant to
Section 20(c)(ii) above, the NBA and the Players Association
shall each consider and determine whether to approve such
request. Without limiting such approval right of the NBA
and the Players Association, the promotion or endorsement
by a player of a CBD Product that is produced or sold by a
Marijuana Company (A) will not be permitted if such CBD
Product is associated by the Marijuana Company with any
Marijuana Product (e.g., the CBD Product is marketed or
sold under a brand that also includes or refers to Marijuana
Products) or if any proposed promotion creates a reasonable
risk of public confusion with any Marijuana Product, and
(B) if approved, shall be subject to any terms and conditions
imposed by the NBA and/or the Players Association. In the
event that any information provided in a player’s request is
inaccurate at the time it is submitted to the NBA or the

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129

Players Association, or in the event that such information
later becomes inaccurate, the NBA or the Players
Association may in their discretion withdraw their approval
of the player’s request.
(d) For clarity, any investments in or promotions or endorsements of
entities that produce or sell products containing a form of cannabis
(including, for clarity, a CBD form of cannabis) not expressly permitted by
this Section 20 are prohibited. In the event a player engages in a prohibited
investment, promotion, or endorsement, then, without limiting other NBA
rights or remedies, the player shall be required to promptly dispose of his
ownership interest in the prohibited investment and/or immediately
terminate his participation in the prohibited promotion or endorsement, as
applicable.
Section 21. Gambling by Former NBAGL Players.
(a) A player shall be subject to discipline imposed by the NBA for
violations of NBAGL rules pertaining to gambling involving the NBA,
NBAGL, and/or NBA-affiliated leagues that were committed during any
prior period of time during which the player was subject to NBAGL rules
relating to gambling. The NBA may impose such discipline only in
circumstances where, and only to the extent that, discipline would be
authorized by the NBA under this Agreement for the same conduct under
NBA rules pertaining to gambling by players involving the NBA, NBAGL,
and/or NBA-affiliated leagues.
(b) Any player suspended by the NBAGL for violations of the NBAGL
rules pertaining to gambling involving the NBA, NBAGL, and/or NBAaffiliated leagues who signs a Uniform Player Contract before the full term
of the suspension is served shall serve the remainder of the suspension in
the NBA. In addition, any player suspended under NBAGL rules pertaining
to gambling involving the NBA, NBAGL, and/or NBA-affiliated leagues
whose NBAGL contract ends before the full term of the suspension is
served shall be subject to Article VI, Section 1(c) of this Agreement with
respect to the NBAGL suspension if, at the start of the following NBA
Regular Season, he is a Free Agent who has games remaining to be served
on the NBAGL suspension. For purposes of Article VI, Section 1(c), the
“Team to which he was under contract when the suspension was imposed”

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Article VI

shall be deemed to be the NBA team, if any, with which the player first signs
a Player Contract following imposition of the NBAGL suspension.

What Goes Into Tax Threshold Proximity Calculations

 

Tax Rates

 

Team rules

Tax rebates

 

  Threshold Tax calculations Tax Rates Repeater tax Rebates

  1. What the salary cap is From why we're even here, to the difference between a hard cap and soft cap.
  2. Fundamental salary basics Guarantees, proration, maximum raises/decreases, 10-day contracts, roster sizes, etc

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.