The CBA Glossary

Death of a player

The player (well, their family) is still paid the remainder of the players salary. However, one year to the day after the death, the team can apply for salary relief, meaning that whilst the player continues to receive their salary, it is not charged to the team's salary cap. If the players contract was insured, as they almost all are, insurance will pay the salary.

th respect to Player Contracts entered into or extended on or after
the effective date of this Agreement:
(i) The maximum amount of aggregate Base Compensation
that can be protected for death is thirty million dollars
($30,000,000); and
(ii) If a player (other than a player signed to a Contract that
provides in any Season for the player to earn Compensation
equal to his applicable Minimum Player Salary that (x) is
signed after the first day of the Regular Season, or (y) does
not provide for full Base Compensation protection for lack
of skill and injury or illness for the first Season of such
Contract) elects to purchase term life insurance for his
benefit, his Team shall be permitted to reimburse him each
Season for the premiums paid for such insurance with
respect to such Season and any other future Season(s);
provided, however, that:
(A) The amount of coverage for which premiums are
reimbursed by the Team in any Season shall not
exceed the lesser of (x) the aggregate amount of the
player’s unearned Base Compensation for such
Season and each remaining Season (excluding an
Option Year if not yet exercised) that is not
protected for death, and (y) the difference between
(i) eighty-five million dollars ($85,000,000) and
(ii) the aggregate amount of the player’s unearned
Base Compensation for such Season and each
remaining Season (excluding an Option Year if not
yet exercised) that is protected for death.
30 Article II
(B) Any such premium reimbursement shall not exceed
the cost for ten-year guaranteed term coverage at
preferred rates.
(iii) If a Contract contains death protection covering ten million
dollars ($10,000,000) or more of Base Compensation, the
player shall be precluded from purchasing life insurance for
a period of ninety (90) days following the execution or
extension (as applicable) of the Contract or until such earlier
time as the Team notifies the player in writing that it is no
longer attempting to purchase life insurance coverage on the
player (up to the amount of the player’s Base Compensation
protection for death) for the Team’s benefit. During such
ninety (90) day period or until such time as the Team issues
the foregoing written notification to the player, the Team’s
efforts to purchase life insurance on the player for the
Team’s benefit shall be conducted diligently and in good
faith.

No-trade clauses

ecause of the circumstances required to qualify for one, how much power they give a player, and how much power they take away from his team, these vehicles are very rare

no-trade clauses are not like trade bonuses (also known as trade kickers). They are inexhaustible over the life of the contract, and unlike a bonus, can be applied multiple tames. That is to say, waiving the right to veto the trade once does not mean it is waived thereafter.

Force majeure

Termination by NBA/Force Majeure.

(a) “Force Majeure Event” shall mean the occurrence of any of the
following events or conditions, provided that such event or condition either
(i) makes it impossible for the NBA to perform its obligations under this
Agreement, or (ii) frustrates the underlying purpose of this Agreement, or
(iii) makes it economically impracticable for the NBA to perform its

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Article XXXIX

obligations under this Agreement: wars or war-like action (whether actual
or threatened and whether conventional or other, including, but not limited
to, chemical or biological wars or war-like action); sabotage, terrorism, or
threats of sabotage or terrorism; explosions; epidemics; weather or natural
disasters, including, but not limited to, fires, floods, droughts, hurricanes,
tornados, storms, or earthquakes; and any governmental order or action
(civil or military); provided, however, that none of the foregoing enumerated
events or conditions is within the reasonable control of the NBA or an NBA
Team.
(b) In addition to any other rights a Team or the NBA may have by
contract or by law, if a Force Majeure Event occurs and, as a result, one or
more Teams are unable to play one or more games (whether Exhibition,
Regular Season, Play-In, or playoff games), then, for each missed game
during such period (the “Force Majeure Period”) that was not rescheduled
and replayed, the Compensation payable to each player who was on the
roster of a Team that was unable to play one or more games during the
Force Majeure Period shall be reduced by 1/92.6th of the player’s
Compensation for the Season(s) covering the Force Majeure Period. For
purposes of the foregoing calculation, and notwithstanding the actual
number of games that any Team played, was scheduled to play, or could
have played during the Seasons(s) affected by the Force Majeure Event, each
Team shall be deemed to play five (5) Exhibition games, eighty-two (82)
Regular Season games, and 5.6 playoff games during each such Season.
(c) In the event that Section 5(b) above applies, the applicable
Compensation reduction from each player shall be withheld by the player’s
Team from the first Compensation payment (or payments, if the first such
payment is insufficient to satisfy the reduction) that is (or are) due or to
become due to such player following the commencement of the Force
Majeure Period (whether under the Player Contract that was in existence at
the commencement of the Force Majeure Period or any subsequent Player
Contract between the player and the Team). If such Compensation payment
(or payments) is (or are) insufficient to cover the Compensation reduction
required by Section 5(b) above, then either (i) the player shall promptly pay
the difference directly to the Team (“old Team”), or (ii) if he subsequently
enters into a Player Contract with, or is traded to, another NBA Team (“new
Team”), such difference shall be withheld from the first available
Compensation payment (or payments, if the first such payment is
insufficient to satisfy the remaining reduction) that is (or are) due to the

Article XXXIX

545

player from the new Team and shall be remitted by the new Team to the old
Team.
(d) Upon the occurrence of a Force Majeure Event satisfying the terms
of Section 5(a) above, the NBA shall have the right to terminate this
Agreement as of the sixtieth (60th) day following delivery to the Players
Association of a written notice of termination, which must be delivered to
the Players Association within sixty (60) days of the Force Majeure Event.
During the sixty-day period following delivery of such written notice of
termination, the NBA and the Players Association shall engage in good faith
negotiations for the purpose of entering into a successor agreement, and
during such period the provisions of Article XXX shall remain in full force
and effect.

Expansion/contraction

Expansion (the adding ot teams) and contraction (the removal of teams) are barely mentioned in the CBA at all. This is because they are not really NBPA matters, and the CBA is an agreement between the NBA and NBPA. The pair do get a mention in the short Article XL, though.

The NBA has the power to add and subtract teams. However, in the event of expansion, hey will work with the Player's Association to

(2) Notwithstanding Section 2(a)(1) above, in the event that
Projected BRI for any Salary Cap Year in which one or more
Expansion Teams is scheduled to play its second Season, plus
Projected Local Expansion Team BRI for such Salary Cap Year,
multiplied by the applicable percentage of Projected BRI set forth in
Section 2(a)(1) above, less Projected Benefits for such Salary Cap
Year (including for the Expansion Team(s)), divided by the number
of Teams scheduled to play in the NBA during such Salary Cap Year
(including the Expansion Team(s)), exceeds the Salary Cap
calculated in accordance with Section 2(a)(1) above, the Salary Cap
shall equal the amount calculated pursuant to this Section 2(a)(2).

ARTICLE XL
EXPANSION AND CONTRACTION
Section 1.

Expansion.

The NBA may determine during the term of this Agreement to expand
the number of Teams and to have existing Teams make available for
assignment to any such Expansion Teams the Player Contracts of a certain
number of Veterans under substantially the same terms and in substantially
the same manner that Player Contracts were made available to the Charlotte
expansion Team pursuant to the 1999 NBA/NBPA Collective Bargaining
Agreement; provided, however, that any change shall be subject to the
approval of the Players Association, which shall not be unreasonably
withheld.
Section 2.

Contraction.

If, during the term of this Agreement, the NBA decides to contract the
number of Teams, (a) the NBA shall provide written notice of such decision
to the Players Association, and (b) the NBA and the Players Association
shall negotiate and agree upon the effects of such decision on the players
and the procedures to be followed in connection therewith.

Player military duty

Article V of the CBA - ahead of Article VI, the one about free agency, a testament to the piecemeal nature of an agreement built up over time - deals with the matter of players drafted into military service. It is the shortest Article of the entire CBA.

Per Section 1, players drafted into military service during a season, including called-up reserves, can still be paid if they remain on a team's roster, even if on the inactive list. The amount of that compensation is whatever the player and team agree to, as long as it complies with the terms of the CBA - a pay cut from what their NBA salary otherwise called for is therefore possible. ⓘArticle V (Compensation And Expenses In Connection With Military Duty) Section 1. Salary:

A player drafted into military service during the Season, or a player serving on active duty with a reserve unit during the Season, shall be compensated for so long as the player remains on the Active or Inactive List of the Team in such amount as may be negotiated between the player and the Team by which he is employed, subject to the provisions of this Agreement.

Section 2 deals with military duty-related travel expenses. If a player must attend military reserve weekend duty during the season, the team must reimburse the player for any reasonable travel costs he personally pays (after accounting for any other reimbursements) to travel between his military duty location and the team, so that he can still participate in regular-season games. ⓘArticle V (Compensation And Expenses In Connection With Military Duty) Section 2. Travel Expenses:

(a) A player serving on military weekend duty with a reserve unit during the Season shall be entitled to reimbursement for any net out-of-pocket expenses incurred by such player in traveling to and from his place of duty to enable him to join his Team for purposes of participating in a Regular Season game.

If a player who has military reserve weekend obligations is assigned or traded to a different team, he can be reimbursed for travel expenses incurred during the off-season when traveling between his home and the location where he performs his reserve weekend duty. However, this reimbursement only applies if: [1] The player makes a reasonable effort to transfer to a reserve unit located reasonably close to his home; and [2] The team's obligation to reimburse those travel expenses ends six months after the player's contract is assigned to the new team. ⓘArticle V (Compensation And Expenses In Connection With Military Duty) Section 2. Travel Expenses:

(b) In the event that the Player Contract of a player who is required to serve on military weekend duty with a reserve unit is assigned to another Team, the player shall be entitled to reimbursement for any out-of-pocket expenses incurred by such player in traveling during the off-season to and from his home and his place of military weekend duty with a reserve unit; provided that (i) the player makes reasonable efforts to change his reserve unit location to one located reasonably close to his home, and (ii) such obligation to reimburse the player shall cease six (6) months from the date that such player's Contract is assigned.

shortfall amount

(5)(i) For each Salary Cap Year beginning with the 2023-24 Salary
Cap Year, in the event that (A) there is a Shortfall Amount (as
defined in Section 12(a)(21) below) for such Salary Cap Year,
and (B) the Carryover Amount (as defined in Section 12(a)(12)
below) in respect of the subsequent Salary Cap Year is equal to
zero (0), then the Salary Cap, Minimum Team Salary, Tax Level,
First Apron Level, and Second Apron Level for such
subsequent Salary Cap Year (as calculated in accordance with
Sections 2(a)(1)-(4) above) shall each be increased by an amount
equal to the Shortfall Amount divided by the number of Teams
in the NBA during such subsequent Salary Cap Year (other
than Expansion Teams in their first two (2) Salary Cap Years in
the NBA).

overage

For each Salary Cap Year beginning with the 2023-24 Salary
Cap Year, in the event that there is an Overage Amount (as
defined in Section 12(a)(20) below) for such Salary Cap Year
that exceeds six percent (6%) of Total Salaries and Benefits,
then the Salary Cap, Minimum Team Salary, Tax Level, First
Apron Level, and Second Apron Level for the subsequent
Salary Cap Year (as calculated in accordance with Sections
2(a)(1)-(4) above) shall each be reduced by an amount
calculated as follows:
STEP 1: Subtract six percent (6%) of Total Salaries and
Benefits from the Overage Amount.
STEP 2: If Projected BRI for the subsequent Salary Cap
Year does not exceed BRI for the Salary Cap Year
by more than eight percent (8%) of BRI for the
Salary Cap Year or the Overage Amount described
above exceeds nine percent (9%) of Total Salaries
and Benefits, then divide the result of Step 1 by the
number of Teams in the NBA during the
subsequent Salary Cap Year (other than Expansion
174 Article VII
Teams in their first two (2) Salary Cap Years in the
NBA). The result of this calculation is the amount
of the reduction in each of the Salary Cap,
Minimum Team Salary, Tax Level, First Apron
Level, and Second Apron Level for such
subsequent Salary Cap Year, and no further steps
are required.
If Projected BRI for the subsequent Salary Cap
Year exceeds one hundred eight percent (108%) of
BRI for the Salary Cap Year and the Overage
Amount described above does not exceed nine
percent (9%) of Total Salaries and Benefits, then
proceed to Step 3.
STEP 3: Subtract one hundred eight percent (108%) of BRI
for the Salary Cap Year from Projected BRI for the
subsequent Salary Cap Year.
STEP 4: Multiply the result of Step 3 by fifty percent (50%).
STEP 5: Subtract the result of Step 4 from the result of
Step 1. If the result of this step is less than
zero (0), then no adjustments shall be made to the
Salary Cap, Minimum Team Salary, Tax Level,
First Apron Level, or Second Apron Level for the
subsequent Salary Cap Year, and no further steps
are required.
STEP 6: Divide the result of Step 5 by the number of
Teams in the NBA during such subsequent Salary
Cap Year (other than Expansion Teams in their
first two (2) Salary Cap Years in the NBA). The
result of this calculation is the amount of the
reduction in each of the Salary Cap, Minimum
Team Salary, Tax Level, First Apron Level, and
Second Apron Level for such subsequent Salary
Cap Year.
Article VII 175
Example: Assume: (i) 2024-25 Total Salaries and Benefits is $5.5 billion, the
2024-25 Designated Share is $5.1 billion, and the resulting 2024-25 Overage
Amount is $400 million (which equals approximately 7.3% of Total Salaries
and Benefits); (ii) 2025-26 Projected BRI is $10.5 billion, 2024-25 BRI is
$10 billion, and thus 2025-26 Projected BRI exceeds 2024-25 BRI by 5%;
and (iii) there are 30 Teams in the NBA in the 2025-26 Season. The 2025-
26 Salary Cap, Minimum Team Salary, Tax Level, First Apron Level, and
Second Apron Level would each be reduced by $2,333,333 (i.e., $70 million
(i.e., 2024-25 Overage Amount of $400 million less $330 million (i.e., 6% of
2024-25 Total Salaries and Benefits) divided by 30 (i.e., the number of Teams
in the NBA during the 2025-26 Season)).
Example: Same assumptions as in the prior example, except assume 2025-26
Projected BRI is $10.9 billion (instead of $10.5 billion), and thus 2025-26
Projected BRI exceeds 2024-25 BRI by 9%. The 2025-26 Salary Cap,
Minimum Team Salary, Tax Level, First Apron Level, and Second Apron
Level would each be reduced by $666,667 (i.e., the difference between the $70
million from the prior example and $50 million (i.e., 50% of $100 million (i.e.,
2025-26 Projected BRI of $10.9 billion less $10.8 billion (i.e., 108% of 2024-
25 BRI of $10 billion)) divided by 30 (i.e., the number of Teams in the NBA
during the 2025-26 Season)))

Early CBA termination

The CBA is renegotiated every few years; the latest and current CBA went into effect on 1st July 2023. It is set to run through the end of the 2029-2030 salary cap year (30th June 2030), although it can end earlier than that in any of the following circumstances: ⓘ Article XXXIX (Term of Agreement) Section 1 (Effective Date and Expiration Date):

This Agreement shall be effective from July 1, 2023 (except with respect to provisions that the parties have specifically agreed herein will commence earlier) and, unless terminated pursuant to the provisions of this Article XXXIX, shall continue in full force and effect through June 30, 2030 (except with respect to provisions that the parties have specifically agreed herein will survive expiration or termination).

- The NBA and the Players Association have a mutual option (i.e. either can do it) to terminate the CBA a year early, on 30th June 2029, by serving a written notice on the other party on or before 15th October 2028. ⓘArticle XXXIX (Term of Agreement) Section 2 (Mutual Options to Terminate Following Sixth Season):

The NBA and the Players Association shall each have the option to terminate this Agreement on June 30, 2029 by serving written notice of its exercise of such option on the other party on or before October 15, 2028.

- In the event of extreme collusion. If:

(a) in any one season, five or more teams engaged in collusive conduct that negatively affected five or more players,

(b) in any two consecutive seasons, seven or more teams engaged in collusive conduct that negatively affected seven or more players, or

(c) the Players Association brings a successful action demonstrating ten players have been negatively affected by collusive behaviour across the life of the agreement,

then the Players Association can, within 30 days, opt to terminate the agreement at the following June 30th. ⓘArticle XXXIX (Term of Agreement) Section 3 (Termination by Players Association/Anti-Collusion):

(a) In the event the conditions of Article XIV, Section 15 are satisfied, the Players Association shall have the right to terminate this Agreement by serving written notice of its exercise of such right within thirty (30) days after the System Arbitrator's report finding the requisite conditions (pursuant to Article XIV, Section 15) becomes final and any appeals therefrom have been exhausted or, in the absence of a System Arbitrator, by serving such written notice upon the NBA within thirty (30) days after any decision by a court finding the requisite conditions (pursuant to Article XIV, Section 15). In the latter situation, if the finding of the court is reversed on appeal, the Agreement shall be immediately reinstated and both parties reserve their rights with respect to any conduct by the other party during the period from the date of service of the termination notice to the date upon which the Agreement was reinstated.

(b) If the Players Association exercises the right accorded it by Section 3(a) above, this Agreement shall terminate as of the June 30 immediately following the service of the termination notice. ⓘ

- If "national TV revenues" drop significantly, the league can, within 60 days, opt to terminate the agreement at the following June 30th - specifically, it requires a 35% drop. ⓘArticle XXXIX (Term of Agreement) Section 4 (Termination by NBA/National TV Revenues):

(a) For the purposes of this provision: (i) "National TV Revenues" shall mean the rights fees or other non-contingent payments stated in the NBA's third-party national broadcast network (e.g., ABC) and cable network (e.g., TNT or ESPN) television agreements (each, a "National TV Agreement"); and (ii) "Other Media Income" shall mean the aggregate net income earned by any League-related entity (as defined in Article VII, Section 1(a)(1)) (but excluding net income attributable to ownership interests in any such League-related entity that is not owned by the NBA, NBA Properties, Inc., NBA Media Ventures, LLC, and/or a group of NBA Teams) or by the NBA on behalf of the Teams from agreements that provide for the transmission of live (or delayed) NBA games, on a domestic or international basis, by means of television, radio, internet, and any other mode of delivery referenced in Article VII, Section 1(a)(1)(ii), net of reasonable and customary expenses related thereto.

(b) If, during the term of this Agreement, (i) the sum of the average annual National TV Revenues provided for under the Successor Agreements (as defined in Article VII, Section 1(c)(2)), plus one hundred four and one-half percent (104.5%) of Other Media Income for the most recent Salary Cap Year, will be at least thirty-five percent (35%) less than (ii) the sum of the average annual National TV Revenues provided for under the NBA/ABC and NBA/TBS Agreements, plus Other Media Income for the 2022-23 Salary Cap Year, the NBA shall have the right to terminate this Agreement effective as of the June 30 immediately preceding the first Season covered by the Successor Agreements, by providing written notice of such termination to the Players Association at least sixty (60) days prior to such June 30. During the period following delivery of such written notice of termination and through such June 30, the NBA and the Players Association shall engage in good faith negotiations for the purpose of entering into a successor agreement and the provisions of Article XXX shall remain in full force and effect.

- If any of Article VII (Basketball Related Income, Salary Cap, Minimum Team Salary, Tax Level, Apron Levels, and Designated Share Arrangement), Article X (Player Eligibility and NBA Draft), Article XI (Free Agency) or Article XIV (Anti-Collusion Provisions) are struck down in court, either side can terminate within 60 days. ⓘArticle XXXIX (Term of Agreement) Section 6 (Mutual Right of Termination):

If at any time during the term of this Agreement any provision contained in Article VII, X, XI, or XIV of this Agreement is enjoined, vacated, declared null and void, or is rendered unenforceable by any court of competent jurisdiction, then the NBA and the Players Association shall each have the right to terminate this Agreement by serving upon the other party written notice of termination at least sixty (60) days prior to the effective date of such termination.

- Force majeure events. ⓘArticle XXXIX (Term of Agreement) Section 5 (Mutual Right of Termination - League Entity Transaction):

(a) “Force Majeure Event” shall mean the occurrence of any of the following events or conditions, provided that such event or condition either (i) makes it impossible for the NBA to perform its obligations under this Agreement, or (ii) frustrates the underlying purpose of this Agreement, or (iii) makes it economically impracticable for the NBA to perform its obligations under this Agreement: wars or war-like action (whether actual or threatened and whether conventional or other, including, but not limited to, chemical or biological wars or war-like action); sabotage, terrorism, or threats of sabotage or terrorism; explosions; epidemics; weather or natural disasters, including, but not limited to, fires, floods, droughts, hurricanes, tornados, storms, or earthquakes; and any governmental order or action (civil or military); provided, however, that none of the foregoing enumerated events or conditions is within the reasonable control of the NBA or an NBA Team.

(b) In addition to any other rights a Team or the NBA may have by contract or by law, if a Force Majeure Event occurs and, as a result, one or more Teams are unable to play one or more games (whether Exhibition, Regular Season, Play-In, or playoff games), then, for each missed game during such period (the “Force Majeure Period”) that was not rescheduled and replayed, the Compensation payable to each player who was on the roster of a Team that was unable to play one or more games during the Force Majeure Period shall be reduced by 1/92.6th of the player’s Compensation for the Season(s) covering the Force Majeure Period. For purposes of the foregoing calculation, and notwithstanding the actual number of games that any Team played, was scheduled to play, or could have played during the Seasons(s) affected by the Force Majeure Event, each Team shall be deemed to play five (5) Exhibition games, eighty-two (82) Regular Season games, and 5.6 playoff games during each such Season.

(c) In the event that Section 5(b) above applies, the applicable Compensation reduction from each player shall be withheld by the player’s Team from the first Compensation payment (or payments, if the first such payment is insufficient to satisfy the reduction) that is (or are) due or to become due to such player following the commencement of the Force Majeure Period (whether under the Player Contract that was in existence at the commencement of the Force Majeure Period or any subsequent Player Contract between the player and the Team). If such Compensation payment (or payments) is (or are) insufficient to cover the Compensation reduction required by Section 5(b) above, then either (i) the player shall promptly pay the difference directly to the Team (“old Team”), or (ii) if he subsequently enters into a Player Contract with, or is traded to, another NBA Team (“new Team”), such difference shall be withheld from the first available Compensation payment (or payments, if the first such payment is insufficient to satisfy the remaining reduction) that is (or are) due to the player from the new Team and shall be remitted by the new Team to the old Team.

(d) Upon the occurrence of a Force Majeure Event satisfying the terms of Section 5(a) above, the NBA shall have the right to terminate this Agreement as of the sixtieth (60th) day following delivery to the Players Association of a written notice of termination, which must be delivered to the Players Association within sixty (60) days of the Force Majeure Event. During the sixty-day period following delivery of such written notice of termination, the NBA and the Players Association shall engage in good faith negotiations for the purpose of entering into a successor agreement, and during such period the provisions of Article XXX shall remain in full force and effect.

- Poor NBA financial results; if BRI is less than 95% of what it was in any previous salary cap year, this CBA can be terminated by either party, but only after "good-faith" negotiations take place to try and adjust the current one. ⓘArticle XXXIX (Term of Agreement) Section 7 (Mutual Right of Termination - League Financial Results):

If, as determined by the Governing Audit Report for a Salary Cap Year (the “Trigger Salary Cap Year”):

(a) The sum of (i) Team Content Expenses, (ii) League Content Expenses, and (iii) any amortized amount of prior year expenses deductible pursuant to Article VII, Section 1(a)(6)(vi) above, deducted from BRI for the Trigger Salary Cap Year exceeds twenty-five percent (25%) of the sum of Team Content Revenues and League Content Revenues; or

(b) BRI for the Trigger Salary Cap Year is less than ninety-five percent (95%) of the highest BRI amount for any prior Salary Cap Year;

then (i) the NBA and Players Association shall negotiate in good faith to agree upon adjustments to the provisions of this Agreement to take effect beginning with the Salary Cap Year immediately following the Trigger Salary Cap Year, and (ii) if the parties are unable to agree to adjustments to this Agreement in accordance with the foregoing, then the NBA and Players Association will each have the option to terminate this Agreement effective as of the June 30 of the Salary Cap Year immediately following the Trigger Salary Cap Year, by serving written notice of its exercise of such option on the other party on or before the date that is sixty (60) days following the issuance of the Governing Audit Report for the Trigger Salary Cap Year. During the period following delivery of such written notice of termination through the last day of the Salary Cap Year immediately following the Trigger Salary Cap Year, the NBA and the Players Association shall engage in good faith negotiations for the purpose of entering into a successor agreement and during such period the provisions of Article XXX shall remain in full force and effect.

-If audits show that the salary-cap system is failing to deliver players their agreed share of league revenues - either because large balances remain unrecovered or players are consistently underpaid relative to their BRI share, despite the escrow system - the NBA and NBPA must renegotiate the system, and if they cannot agree on a fix after "good faith negotiations", either side can terminate the CBA. ⓘArticle XXXIX (Term of Agreement) Section 8 (Mutual Right of Termination - Designated Share):

If, as determined by the Governing Audit Report for a Trigger Salary Cap Year (and, with respect to clause (c) below, the Governing Audit Report for the Salary Cap Year immediately preceding the Trigger Salary Cap Year):

(a) the Aggregate Team Overage Balance in respect of the Trigger Salary Cap Year or any Salary Cap Year preceding the Trigger Salary Cap Year, after giving effect to the processes set forth in Article VII, Section 12(e)(1)-(2) for the Trigger Salary Cap Year, is greater than zero (0); or

(b) the Shortfall Amount for the Trigger Salary Cap Year is greater than twenty-five percent (25%) of Adjusted Total Salaries for such Salary Cap Year; or

(c) with respect to each of the Trigger Salary Cap Year and the Salary Cap Year immediately preceding the Trigger Salary Cap Year, the Shortfall Amount for the year is greater than ten percent (10%) of Adjusted Total Salaries for such year;

then (i) the NBA and Players Association shall negotiate in good faith to agree upon adjustments to the provisions of this Agreement as may be appropriate to effect (1) in the case of clause (a) above, a timely recoupment of the outstanding Aggregate Team Overage Balance and any potential future Aggregate Team Overage Balances, and (2) in the case of clauses (b) and (c) above, a more timely distribution of the Designated Share into Total Salaries, with such adjustments to take effect beginning with the Salary Cap Year immediately following the Trigger Salary Cap Year, and (ii) if the parties are unable to agree to adjustments to this Agreement in accordance with the foregoing, then the NBA and Players Association will each have the option to terminate this Agreement effective as of the June 30 of the Salary Cap Year immediately following the Trigger Salary Cap Year, by serving written notice of its exercise of such option on the other party on or before the date that is sixty (60) days following the issuance of the Governing Audit Report for the Trigger Salary Cap Year. During the period following delivery of such written notice of termination through the last day of the Salary Cap Year immediately following the Trigger Salary Cap Year, the NBA and the Players Association shall engage in good faith negotiations for the purpose of entering into a successor agreement and during such period the provisions of Article XXX shall remain in full force and effect.

- If any entity connected to the NBA that was generating $50 million or more in annual revenue counted towards BRI is sold (for example, digital streaming operations or marketing entities), or its ownership is transferred, and as a result that business is no longer considered a league-related entity; then as above, "good faith" negotiations must take place, followed by a mutual option to terminate. ⓘArticle XXXIX (Term of Agreement) Section 9 (Mutual Right of Termination - League Entity Transaction):

In the event a sale or transfer of ownership interests in a League-related entity that, prior to such sale or transfer, generated $50 million or more of annual revenues included in BRI results in such entity ceasing to be a League-related entity, including in circumstances where a League-related entity continues to hold a non-controlling minority ownership interest in such entity following such sale or transfer, the parties shall negotiate in good faith such modifications to the CBA as may be appropriate, to take effect beginning with the Salary Cap Year in which such sale or transfer occurs and taking into account all relevant facts and circumstances including the amounts included in BRI prior to such sale or transfer, to ensure a fair inclusion of amounts in BRI following such sale or transfer. In the event the parties are unable to reach an agreement on CBA modifications within thirty (30) days of such a sale or transfer, either party may thereafter for a period of thirty (30) days elect to terminate the CBA, by written notice to the other party, effective as of the June 30 immediately following the service of the termination notice (or, if later, as of the first June 30 that is at least sixty (60) days following the service of the termination notice). Should either party terminate the CBA in accordance with the foregoing effective as of any June 30, then:

(a) For the Salary Cap Year encompassing such June 30: (i) BRI shall be calculated in accordance with the provisions of this Agreement, except as set forth in subsection (a)(ii) below; (ii) the treatment of BRI relating to such sale or transfer shall be determined by agreement of the parties in a successor Collective Bargaining Agreement; and (iii) the completion of the Audit Report, and the performance of the calculations and reconciliation processes described in Article VII, Sections 12(d)-(g) (including, for clarity, the distribution of any Overage Amount or Shortfall Amount) shall be deferred pending the completion of an agreement by the parties on a successor Collective Bargaining Agreement, which shall specify the time period for completing such Audit Report, calculations, and reconciliation processes in accordance with the provisions of subsections (a)(i) and (a)(ii) above; and

(b) For the Salary Cap Year immediately following such June 30, each of the Salary Cap, Minimum Team Salary, Tax Level, First Apron Level, and Second Apron Level shall increase to an amount that is equal to one hundred five percent (105%) of its amount for the Salary Cap Year encompassing such June 30, subject to any modification of the foregoing on which the parties agree in a successor Collective Bargaining Agreement.

It should be noted that no previous CBA has ever been terminated for any of the above reasons, or indeed any reasons, other than the option early ending date. It should further be noted that while the coronavirus pandemic could have sufficed as a sufficient force majeure enough to terminate, the two parties did not exercise the option to do so, instead working on what needed adjusting for the next two seasons. It benefits neither party to blow the agreement up lightly - if they can resolve, they will.

if any part of the CBA is later found to conflict with the National Labor Relations Act, IRS Code of 1986 or any other law, the NBA and Players Association will modify that provision so that it complies with the relevant requirements. ⓘArticle XXXV (Savings Clause):

In the event that any provision hereof is found to be inconsistent with the Internal Revenue Code of 1986, as amended (or the rules and regulations issued thereunder (the “Code”)), the National Labor Relations Act, any other federal, state, provincial, or local statute or ordinance, or the rules and regulations of any other government agency, or is determined to have an adverse effect upon the right of the NBA (or any successor entity) to a tax exemption under Section 501(c)(6) of the Code (or any successor section of like import), then the parties hereto agree to make such changes as are necessary to avoid such inconsistency or to obtain or maintain such exemption retaining, to the extent possible, the intention of such provision.

Player hold-outs

If a player refuses to play for their team for more than 30 days after the start of the final season of their contract, the NBA treats them as having failed to complete their contract. Because of this, they do not become a veteran free agent when the contract expires (i.e. they have no Bird rights), and they cannot negotiate with or sign for another professional basketball team unless their team explicitly agrees to let them. ⓘArticle XI (Free Agency) Section 3 (Withholding Services):

A player who withholds playing services called for by a Player Contract for more than thirty (30) days after the start of the last Season covered by his Player Contract shall be deemed not to have �complet[ed] his Player Contract by rendering the playing services called for thereunder.� Accordingly, such a player shall not be a Veteran Free Agent and shall not be entitled to negotiate or sign a Player Contract with any other professional basketball team unless and until the Team for which the player last played expressly agrees otherwise.

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