Timeline

1954:

Bob Cousy of the Boston Celtics begins to organize NBA players and becomes first president of the National Basketball Players Association. At the time, there is no pension plan, no per diem, no minimum wage, no health benefits, and the average player salary is $8,000. The NBA refuses to recognize the Union.

1957-58:

The NBA engages in discussions, not negotiations, with the Players Association. Tom Heinsohn is named the second president of the NBPA. There still is no pension plan, health benefits or minimum wage provisions. The average player salary is $12,000.

1964:

After threatening not to play in the first televised NBA All-Star Game, the players gain their first major victory. The owners formally recognize the NBPA as the exclusive collective bargaining representative of all NBA players. The players receive a per diem increase to $8 a day, and a pension plan is set up that the players themselves fund in part. Oscar Robertson becomes the NBPA’s third president in 1965, and remains in that position through 1974.

1970:

After the expiration of the first ever comprehensive Collective Bargaining Agreement between the players and the owners, a group of 14 NBA players begin the Robertson class action lawsuit, challenging the League’s actions in imposing certain restraints as illegal under the antitrust laws. Paul Silas succeeds Oscar Robertson as President in 1974.

1976:

Players and owners sign the landmark "Robertson Agreement," eliminating the oppressive "reserve" or "option" clauses that bound a player to his team even after his contract would expire. Other advances are made, including limitations on the college draft. The average salary approaches $200,000. Bob Lanier becomes the NBPA’s fifth president in 1980.

1983:

The players and owners reach an unprecedented agreement to share League revenues. The players are to be paid their 53% guaranteed share of revenues through the mechanism of a "Salary Cap." Minimum player salaries increase to $40,000. The average player salary rises to about $275,000. Junior Bridgeman becomes president in 1985.

1987-88:

Upon expiration of the labor agreement, a group of players bring another antitrust lawsuit against the owners. Alex English soon takes over as NBPA President. In 1988, the NBPA settles the lawsuit by signing the Bridgeman Settlement Agreement, bringing true, unrestricted free agency to the NBA — the first unrestricted free agency in any major professional sports league. The Bridgeman Agreement loosens other restrictions, including reducing the college draft from seven rounds to two rounds. Free agency is protected with strict anti-collusion provisions. The terms of the Bridgeman Agreement become incorporated into a six-year Collective Bargaining Agreement. Larry Fleisher, General Counsel of the Players Association since 1963, resigns. Charles Grantham becomes the Union’s first Executive Director. Isiah Thomas becomes the eighth president in 1989.

1991-92:

The players bring a proceeding charging the owners with underreporting revenues. The "DGR Settlement" signed in July 1992 is worth approximately $62 million to the players. The Pre-Pension Benefit Plan begins to operate, as a forced savings plan designed to assist players in their years after basketball but before their regular pension begins. The Plan is later terminated to help build a strike/lockout fund. The average player salary reaches $1 million.

1994:

In February, Executive Committee elections are held. Buck Williams becomes the ninth NBPA president.

In April, formal negotiations begin to replace the 1988 Collective Bargaining Agreement that will expire after the 1994 Finals.

In June, the owners and the players sue each other in the "Buck Williams case" over the NBA’s right under the antitrust laws to continue in place the Salary Cap, the College Draft, and the Right of First Refusal upon the expiration of the Collective Bargaining Agreement. After a one-day trial, a federal judge in New York rules in early September in favor of the owners. An immediate appeal is taken and argued in late September.

In October, collective bargaining resumes. The players and owners agree on a No Lockout/No Strike Agreement that will ensure the 1994-95 season will be played in its entirety.

1995:

In January, the United States Court of Appeals upholds the lower court ruling in the Williams case in an even stronger decision for the owners. The players take an appeal to the United States Supreme Court. Bargaining continues.

In April, Charles Grantham resigns. Simon Gourdine, NBPA General Counsel since 1990, becomes Executive Director & General Counsel.

In late June, days before the college draft, the negotiation committees for the players and owners shake hands on a new six-year collective bargaining agreement. The player representatives table a vote on the new contract to allow further negotiations to take place. A decertification petition is filed with the National Labor Relations Board.

On July 1, in the absence of a new collective bargaining agreement, the NBA imposes a lockout, causing the first ever work stoppage in the NBA.

On August 1, the Players Association announces that it will voluntarily decertify on August 9 if the owners do not meet three specific demands regarding the operation of the salary cap. On August 8, the owners agree to meet the demands, and the players accept the owners’ offer. The decertification initiative continues, however, with a secret ballot election among all players scheduled for August 30 and September 7.

On September 12, the NLRB announces that the players have voted against decertification. On September 15, the player reps ratify the terms of the new agreement by a vote of 25-2. Ratification by the owners follows shortly after. The lockout is lifted.

1996:

Average player salary approaches $2 million. The minimum player salary is raised to $225,000. Restricted free agency and the right of first refusal are to be eliminated at the conclusion of the 95-96 season. Player group licensing monies increase from $500,000 a year to at least $25 million a year.

Simon Gourdine departs as Executive Director. After a lengthy search conducted by a leading executive search firm, the players choose former US Attorney for the Northern District of California G. William Hunter as NBPA Executive Director.

1997-98:

Patrick Ewing is elected as the tenth President of the NBPA. On December 1, 1997 Latrell Sprewell is suspended for a full year and has his guaranteed contract terminated for allegedly choking Golden State Coach PJ Carlesimo during a practice. The NBPA challenges the NBA’s discipline in an arbitration proceeding that garners world wide coverage and attention. On March 4, 1998 Arbitrator John Feerick issues a landmark ruling in favor of the NBPA and Sprewell, reinstating his guaranteed contract and reducing his suspension from a full calendar year (82 games) to the remainder of the NBA season (68 games), allowing Sprewell to attend training camp and begin the next season on time.

In March 1998, the NBA exercises its option to terminate the 1995 Collective Bargaining Agreement at the conclusion of the 1997-98 season when player salaries rise to an all-time high of 57% of Basketball Related Income (BRI), and the average salary rises to $2.36 million. The NBA owners propose to roll salaries back to 48% of BRI and install a hard cap system that would effectively eliminate guaranteed contracts. When the NBPA refuses to agree to these demands, the owners impose a lockout and shut down the business on July 1, 1998.

In an unprecedented show of solidarity, the players fight off the owners’ harsh demands, but at a substantial cost. The lockout soon becomes the longest work stoppage in the history of the league, resulting in the NBA’s first ever cancellation of training camp and exhibition games. In the late summer of 1998, the NBPA files an arbitration seeking to force the owners to honor their guaranteed player contracts and continue to make the salary payments promised in the contracts, even during the lockout. Arbitrator John Feerick issues a ruling in favor of the NBA. The ruling, in effect, extends the lockout.

The lockout continues through November and regular season games are cancelled for the first time in league history. In December the NBA announces the first ever cancellation of All-Star weekend, scheduled to take place in Philadelphia in February of 1999.

Shortly before January 20, 1999, after an all night bargaining session between Executive Director Bill Hunter and Commissioner David Stern, the two sides reach an agreement in principle that is subsequently ratified by players and owners just in time to salvage the season. The seven-month 191-day owner-imposed lockout is the longest work stoppage in NBA history by a wide margin and results in a shortened 50 game 1998-99 season. Both sides incur significant economic losses as a result of the lockout including $400 million in lost player salaries and close to $1 billion in owner, team and league revenues.

The new Collective Bargaining Agreement is a six-year deal with an owner option to extend for a seventh season. The agreement addresses the needs of both parties, limiting the large collective salary increases the players had enjoyed in recent years, while allowing the players to earn a healthy share of league revenues, maintain guaranteed contracts, boost up the salaries of the lower earning players, and restore what had been a shrinking middle class. As part of the compromise, the owners get a limit on the maximum salaries that could be paid to star players, an extended rookie wage scale, and a reduction in the percentage salary increase a player could earn in a multi-year contract. In addition, beginning in the fourth year of the deal, the players agree to place in escrow up to 10% of their salaries, to be refunded if total league wide salaries exceed a certain percentage of revenues (55%). In addition, beginning in the fourth year, teams are responsible for paying a luxury tax if their payroll exceeds an even higher level of BRI (61%).

Among other things, in return the owners agree to the creation of a new widely used salary cap exception called the “mid-level exception” which is available to every team that exceeds the salary cap. The added flexilbility of the mid-level exception is designed to provide a significant reduction in the number of minimum salaried players while shrinking the gap between the superstars and the rank and file.. The players also receive significantly increased minimum salaries, up to $1 million dollars for players with ten years of service and a significantly increased benefits package including a 401k plan.

Players receive about 60% of their salaries for the 1998-99 season based on the 40% reduction in the number of games played. However, salaries climb to an all time high as a percentage of revenues as the players receive 59% of BRI.

1999-2000:

During the 1999-2000 season, with some of the more restrictive elements of the new CBA yet to take effect, players receive 62% of revenues -- an all time high for the second consecutive season. Salaries and benefits increase to $1.38 billion which represents a 40% increase over the $995 million received by players two years earlier during the last year of the prior Collective Bargaining Agreement. The average salary increases to $3.62 million.

2000-01:

Michael Curry is elected to serve as the eleventh President of the NBPA. Total player salaries and benefits increase by about 17% to $1.595 billion. The players’ share of revenues reaches another all time high peaking at 65%. During the first three years of the 1999 Collective Bargaining Agreement, player compensation increases almost 60%.

2001-02:

During the 2001-2002 season the escrow and luxury tax cost control mechanisms come into play for the first time. Ten percent of players’ salaries are withheld in escrow based on the expectation that salaries and benefits will exceed the 55% threshold of Basketball Related Income, which eventually does occur. At the conclusion of the season the players split the escrow proceeds with the owners. Total Player compensation declines slightly (approximately 4%) to $1.519 billion and the players take in about 57% of BRI revenues.

2002-03:

The NBPA announces it plans to relocate its midtown Manhattan offices to the historic Harlem section of Manhattan to participate in the revitalization of the area. NBPA player reps authorize the purchase of a three story building on 125th street in Manhattan. Plans for an extensive renovation of the facility commence with the actual relocation of the offices scheduled for late 2006-early 2007. During the 2002-2003 season players receive 60% of the revenues for a total of $1.575 billion in salaries and benefits and the average salary increases to $3.95 million.

2003-04:

In December 2003 the NBA owners notify the NBPA of their intention to exercise their option to extend the six year CBA for one additional seventh season through 2004-05.

On December 15, 2003 the NBPA sponsors the largest food giveaway in the history of the City of New York. On one of the coldest days on of the year a dozen NBA players unload tractor trailers to assist in the distribution of sixty pound boxes of food to 5,000 needy families in Harlem. In February 2004 during All-Star weekend in Los Angeles approximately twenty players take part in the distribution of food care packages to 10,000 families.

Total compensation for NBA players rises to $1.583 billion as the players again receive approximately 57% of revenues. The average salary crosses the $4 million dollar threshold for the first time at $4.17 million.

2004-05:

On December 21, 2004, the NBPA holds its second annual holiday food giveaway in Oakland, California, providing boxes of food for 5,000 families.

Antonio Davis is elected as the twelfth NBPA President. In September 2004 the NBPA participates in Project Contact Africa by contributing and delivering medicine that will help nearly 50,000 needy patients at a new medical clinic in Nairobi, Kenya.

The total value of player salaries and benefits for the 2004-05 season increases to $1.74 billion an amount equal to approximately 60% of Basketball Related Revenues.

In July of 2005, the NBPA and NBA ratify a new collective bargaining agreement.