The NBA and the players union are expected to agree to once again extend the deadline to opt out of the current collective bargaining agreement, ESPN reported yesterday.
The current deadline is tomorrow but ESPN reports that the NBA’s board of governors voted Friday to give the league’s labor relations committee the approval to give notice of a June 30 opt-out on a labor deal or extend that opt-out again.
The league and union reportedly want to continue negotiations on a new long-term CBA. Both sides believe there’s enough common ground in discussion thus far to keep trying for an early labor deal and hopefully avoid the uncertainty that would result from declaring an opt-out.
If either party decides to opt out of the CBA, it will expire on June 30, 2023. If nobody opts out, the current seven-year CBA is due to expire following the 2023-24 season.
If the opt-out is executed by either side and a new deal isn’t reached, it could result in a work stoppage in advance of next season.
The sides have been engaged in discussions, including the NBA’s desire to install a hard salary ceiling and do away with the current luxury tax that is being exploited by a handful of teams.
However, talks about the upper spending limits were not received well by the union, per ESPN, which wants to create more opportunities for middle- and lower-spending teams to sign players, too.
Additionally, economic concerns — including the potential bankruptcy of the Sinclair/Diamond Sports Regional Sports Networks, which broadcasts games of 16 teams on local deals — are looming. These issues could make ownership take harder-line positions on financial issues, potentially making it more difficult to address the desire of smaller-market teams to rein in the spending of franchises such as the Golden State Warriors, L.A. Clippers and Brooklyn Nets, per the report.
—Field Level Media