Table Of ContentNBA 
 
COLLECTIVE BARGAINING 
 
AGREEMENT 
 
 
 
 
 
December 2011
Table of Contents  i 
 
COLLECTIVE BARGAINING AGREEMENT 
 
DECEMBER 8, 2011 
 
TABLE OF CONTENTS 
 
ARTICLE I  DEFINITIONS ......................................................... 1 
 
Section 1.  Definitions ................................................................... 1 
 
ARTICLE II  UNIFORM PLAYER CONTRACT .................... 13 
 
Section 1.  Required Form .......................................................... 13 
 
Section 2.  Limitation on Amendments .................................... 13 
 
Section 3.  Allowable Amendments .......................................... 13 
 
Section 4.  Compensation Protection ....................................... 18 
 
Section 5.  Conformity ................................................................ 25 
 
Section 6.  Minimum Player Salary ............................................ 25 
 
Section 7.  Maximum Annual Salary ......................................... 28 
 
Section 8.  Promotional Activities ............................................. 33 
 
Section 9.  10-Day Contracts ...................................................... 37 
 
Section 10.  Rest-of-Season Contracts ........................................ 38 
 
Section 11.  Bonuses ...................................................................... 38 
 
Section 12.  General ....................................................................... 40 
 
Section 13.  Void Contracts .......................................................... 43 
 
Section 14.  Moratorium Period ................................................... 44
ii  Table of Contents 
ARTICLE III  PLAYER EXPENSES ............................................ 45 
 
Section 1.  Moving Expenses ..................................................... 45 
 
Section 2.  Meal Expense Allowance ........................................ 46 
 
ARTICLE IV  BENEFITS ............................................................... 48 
 
Section 1.  Player Pension Benefits ........................................... 48 
 
Section 2.  Player 401(k) Benefits .............................................. 54 
 
Section 3.  Player Supplemental Medical Benefits ................... 57 
 
Section 4.  New Welfare and Post-Employment  
    Benefit Plan ............................................................... 60 
 
Section 5.  Labor-Management Cooperation and  
    Education Trust ........................................................ 67 
 
Section 6.  Additional Player Benefits ....................................... 69 
 
Section 7.  Insurance Carriers..................................................... 73 
 
Section 8.  New Benefits Funding ............................................. 74 
 
Section 9.  Projected Benefits ..................................................... 76 
 
ARTICLE V  COMPENSATION AND EXPENSES IN 
  CONNECTION WITH MILITARY DUTY ..... 78 
 
Section 1.  Salary .......................................................................... 78 
 
Section 2.  Travel Expenses ........................................................ 78 
 
ARTICLE VI   PLAYER CONDUCT ............................................ 79 
 
Section 1.  General ....................................................................... 79
Table of Contents  iii 
Section 2.  Practices ..................................................................... 79 
 
Section 3.  Promotional Appearances ....................................... 79 
 
Section 4.  Mandatory Programs ................................................ 80 
 
Section 5.  Media Training, Business of Basketball  
     and Anti-Gambling Training .................................. 80 
 
Section 6.  Charitable Contributions ......................................... 80 
 
Section 7.  Unlawful Violence .................................................... 82 
 
Section 8.  Counseling for Violent Misconduct ....................... 82 
 
Section 9.  Firearms and Other Weapons ................................ 83 
 
Section 10.  One Penalty ............................................................... 83 
 
Section 11.  League Investigations ............................................... 84 
 
Section 12.  On-Court Conduct ................................................... 84 
 
Section 13.  Motor Vehicles .......................................................... 85 
 
Section 14.  Player Convictions Involving Alcohol  
     or Controlled Substances ........................................ 85 
 
Section 15.  Player Arrests ............................................................ 85 
 
ARTICLE VII  BASKETBALL RELATED INCOME,  
  SALARY CAP, MINIMUM TEAM  
  SALARY, AND ESCROW  
  ARRANGEMENT .................................................. 86 
 
Section 1.  Definitions ................................................................. 86 
 
(a)  Basketball Related Income ...................................... 86
iv  Table of Contents 
  
(b)  Accounting Methods/ 
  Lump Sum Payments ............................................. 108 
 
(c)  Projected BRI .......................................................... 109 
 
(d)  Local Expansion Team BRI .................................. 110 
 
(e)  Projected Local Expansion Team BRI ................ 110 
 
(f)  Interim Projected BRI ........................................... 111 
 
(g)  Barter ........................................................................ 111 
 
(h)  Estimated Total Benefits ....................................... 111 
 
(i)  Estimated Total Salaries ........................................ 111 
 
(j)  Estimated Total Salaries and Benefits ................. 111 
 
(k)  Estimated BRI ......................................................... 111 
 
Section 2.  Calculation of Salary Cap  
                          and Minimum Team Salary ................................... 111 
 
(a)  Salary Cap ................................................................ 111 
 
(b)  Minimum Team Salary ........................................... 113 
 
(c)  Expansion Team Salary Caps  
              and Minimum Team Salaries ................................ 114 
 
(d)  Adjustments to Salary Cap  
                 and Minimum Team Salary ................................... 115 
 
(e)  Guarantee ................................................................ 117
Table of Contents  v 
 
Section 3.  Determination of Salary ......................................... 118 
 
(a)  Deferred Compensation ........................................ 118 
 
(b)  Signing Bonuses ...................................................... 120 
 
(c)  Loans to Players ...................................................... 122 
 
(d)  Incentive Compensation ....................................... 123 
 
(e)  International Player Payments .............................. 125 
 
(f)  One-Year Minimum Contracts ............................. 127 
 
(g)  Insurance Premium Reimbursement ................... 127 
 
(h)  Averaging ................................................................. 127 
 
(i)  Existing Contracts .................................................. 127 
 
Section 4.  Determination of Team Salary ............................. 127 
 
(a)  Computation ........................................................... 127 
 
(b)  Expansion ................................................................ 133 
 
(c)  Assigned Contracts ................................................. 133 
 
(d)  Free Agents.............................................................. 133 
 
(e)  First Round Picks ................................................... 135 
 
(f)  Incomplete Rosters ................................................ 136 
 
(g)  Renouncing .............................................................. 137 
 
(h)  Long-Term Injuries ................................................ 138
vi  Table of Contents 
(i)  Summer Contracts .................................................. 140 
 
(j)  Team Salary Summaries ......................................... 141 
 
Section 5.  Operation of Salary Cap ........................................ 141 
 
(a)  Basic Rule ................................................................ 141 
 
(b)  Room ........................................................................ 141 
 
(c)  Annual Salary Increases and Decreases ............... 141 
 
(d)  Performance Bonuses ............................................ 144 
 
(e)  No Futures Contracts ............................................ 145 
 
Section 6.  Exceptions to the Salary Cap ................................ 146 
 
(a)  Existing Contracts .................................................. 146 
 
(b)  Veteran Free Agent Exception ............................. 146 
 
(c)  Disabled Player Exception .................................... 147 
 
(d)  Bi-annual Exception ............................................... 150 
 
(e)  Non-Taxpayer Mid-Level  
              Salary Exception ..................................................... 151 
 
(f)  Taxpayer Mid-Level Salary Exception ................. 152 
 
(g)  Mid-Level Salary Exception for Room   
             Teams ....................................................................... 154 
 
(h)  Rookie Exception ................................................... 155 
 
(i)  Minimum Player Salary Exception ....................... 155 
 
(j)  Traded Player Exception ....................................... 155
Table of Contents  vii 
 
(k)  Reinstatement .......................................................... 158 
 
(l)  Non-Aggregation .................................................... 158 
 
(m)  Other Rules ............................................................. 159 
 
Section 7.  Extensions, Renegotiations  
    and Other Amendments ........................................ 161 
 
(a)  Veteran Extensions ................................................ 161 
 
(b)  Rookie Scale Extensions ........................................ 164 
 
(c)  Renegotiations ......................................................... 164 
 
(d)  Other ........................................................................ 166 
 
Section 8.  Trade Rules .............................................................. 169 
 
Section 9.  Miscellaneous .......................................................... 173 
 
Section 10.  Accounting Procedures ......................................... 174 
 
Section 11.   Players Association Audit Rights ......................... 178 
 
(a)  Team Audits ............................................................ 178 
 
(b)  Expense Audit ......................................................... 179 
 
(c)  Confidentiality ......................................................... 180 
 
Section 12.  Escrow and Tax Arrangement .............................. 180 
 
(a)  Definitions ............................................................... 180 
 
(b)  Compensation Adjustment Rules ........................ 188 
 
(c)  Escrow Procedure .................................................. 191
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(d)  Reconciliation Procedures ..................................... 193 
 
(e)  Aggregate Compensation Adjustment  
  Amount Shortfalls .................................................. 197 
 
(f)  Team Payments ....................................................... 198 
 
(g)  Escrow and Tax Proceeds ..................................... 201 
 
(h)  Revenue Decline ..................................................... 202 
 
(i)  Miscellaneous .......................................................... 203 
 
(j)  Amnesty Procedures .............................................. 204 
 
ARTICLE VIII  ROOKIE SCALE .................................................. 211 
 
Section 1.  Rookie Scale Contracts for  
    First Round Picks ................................................... 211 
 
Section 2.  Rookie Contracts for Later-Signed  
                         First Round Picks ................................................... 214 
 
Section 3.  Loss of Draft Rights .............................................. 214 
 
ARTICLE IX  LENGTH OF PLAYER CONTRACTS ........... 216 
 
Section 1.  Maximum Term ...................................................... 216 
 
Section 2.  Computation of Time ............................................ 216 
 
ARTICLE X  PLAYER ELIGIBILITY AND  
  NBA DRAFT.......................................................... 217 
 
Section 1.  Player Eligibility ...................................................... 217 
 
Section 2.  Term and Timing of Draft Provisions ................ 219
Description:NBA. COLLECTIVE BARGAINING. AGREEMENT. December 2011  NBA DRAFT. 217. Section 1. Player Eligibility .