Report: Lockout Could Be Looming As NBA Wants 'Upper Salary Limit'

It sounds like labor peace in the NBA is going to be tested very harshly in the ongoing collective bargaining negotiations. The league wants a hard upper limit put on salaries for teams. Needless to say, the players union is not in agreement. And that's putting it mildly.

Story filed to ESPN: The NBA is pursuing the implementation of an upper salary limit in its negotiations on a new collective bargaining agreement with the National Basketball Players Association, a systematic change that has been met with significant union resistance.
— Adrian Wojnarowski (@wojespn) October 28, 2022

"There will be a lockout," a players' source told NBA Insider Marc Stein, "before there’s a hard cap."

"There will be a lockout," one source from the players’ side told me, "before there’s a hard cap."

Full story on the NBA's push for what it calls an "Upper Spending Limit" and how labor peace once assumed is no longer "a layup" --> https://t.co/k0u2Y46i8I https://t.co/QQivYqVHLO
— Marc Stein (@TheSteinLine) October 28, 2022

According to NBA Insider Adrian Wojnarowski, the league wants to impose an "upper salary limit", (while avoiding the term "hard cap"), which has been met with "significant union resistance." He adds that the massive luxury tax bills that some teams have recklessly racked up is the impetus for the proposal.

In wake of large market contenders Golden State, Brooklyn and the Los Angeles Clippers running up massive payrolls and luxury tax penalties, the NBA's proposing a system that would replace the luxury tax with a hard limit that teams could not exceed to pay salaries, sources said.
— Adrian Wojnarowski (@wojespn) October 28, 2022

Citing the massive payrolls that teams such as the Golden State Warriors, Brooklyn Nets and Los Angeles Clippers have run up, Woj says the NBA wants to replace the luxury tax with a hard limit that teams could not exceed to pay salaries. That can easily be interpreted by players as a "hard cap" and is basically a non-starter for the NBPA.

Stein says "there is a strong desire from some corners of the league map to implement a much more onerous system to limit overall team spending while the values of individual contracts and t league's average salary are expected to keep rising with an influx of TV money looming."

Stein adds, however, that this push isn't unanimous among teams, as there are some that are "fearful that an actual payroll line that absolutely can't be crossed... could make it even harder to retain their best players."

This is undoubtedly something that will be front and center in these CBS negotiations, and we'll be hearing a lot more about it.

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