The NBA and NBPA reached an agreement for a tentative deal on a new Collective Bargaining Agreement early Saturday morning. Among the details of the new CBA includes a rule which will enable players to invest in NBA teams, according to Shams Charania of The Athletic.
The NBA would become the first of the major American professional sports leagues to give players the chance to invest in an equity stake in their respective teams, which could present massive financial upside to the athletes.
Additionally, the new CBA is set to enable players to promote and invest in sports betting and cannabis companies, per Charania.
Game changer: The league's new collective bargaining agreement will give players the ability to invest in NBA and WNBA teams, as well as promote and/or invest in sports betting and cannabis companies, sources tell @TheAthletic @Stadium.— Shams Charania (@ShamsCharania) April 2, 2023
The ability to invest in teams is not limited to the NBA, however, as players will also be able to acquire equity stake in WNBA franchises.
Considering the current valuation of NBA teams, this could be a very significant change for the players.
According to Sportico, the Warriors are the most valuable team in the league, with a valuation of $7.56 billion. That figure has increased 25% in the last year. The Knicks are second at $6.58 billion, ahead of the Lakers who are worth $6.44 billion.
The Suns, the most recent NBA team to undergo a sale, were sold to Mat Ishbia in December 2022 at a cost of $4 billion. Now, players will get the chance to cash in some way when a sale goes down, once the new CBA is ratified.