The NBA and the NBA Players Association signed a new Collective Bargaining Agreement on June 28 and the major highlights involved the salary cap changes that will affect the market of players around the league.
But the 676-page document contained so much more information that will affect the league and its players, including new investment opportunities for the players. NBA players can now own a stake in WNBA franchises and sports betting teams, while also indirectly owning a stake in NBA franchises as well.
Article XXIX Section 13 of the new CBA says that NBA players may invest in WNBA teams that are not owned by NBA team owners as well. This removes teams like the New York Liberty, who are owned by Joe Tsai and the Brooklyn Nets, and the Phoenix Mercury, who were purchased by new owner Matt Ishbia together with the Phoenix Suns earlier this year.
NBA players are only allowed to purchase up to 4% of just one WNBA franchise, while NBA players collectively can only have up to 8% stake in one WNBA franchise.
More Athlete Investments:
- Three PGA Tour Golf Stars Want to Buy This $200 Million Dollar Sports Club
- LeBron James Considers Buying a Major Media Brand
- Cavinder Twins Exploring Two Massive Sports Partnerships
Article VI Section 19 states that NBA players are allowed to own up to 1% passive interest in sports betting companies, a major move as sports betting regulations continue to be facilitated across different leagues.
Finally, while players cannot directly own a stake in NBA teams, they are allowed to own under 1% of publicly-traded securities in companies that directly or indirectly own NBA franchises according to Article XXIX Section 12 of the CBA.
Also, the NBA Players Association can invest in private funds that acquire stake in NBA teams, but the union can only own up to 5% of the fund’s aggregate capital.
The NBA has been expanding a lot more into different funds gaining stake in its teams as valuations continue to skyrocket. A single fund can own up to 20% of one franchise, while a collective of funds can own up to 30% of an NBA franchise.
