Article 6 PLAYER CONDUCT
6.1 Games.
- In addition to any other rights a Team or the NBA may have by contract (including but not limited to the rights set forth in Paragraphs 9 and 16 of the Uniform Player Contract) or by law:
- When a player (A) fails or refuses, without proper and reasonable cause or excuse, to render the services required by a Player Contract or this Agreement, or (B) is suspended by his Team or the NBA for failing or refusing, without proper and reasonable cause or excuse, to render the services required by a Player Contract or this Agreement, the Current Base Compensation payable to the player for the year of the Contract during which such failure or refusal and/or suspension occurs shall be reduced by 1/91.6th of the player’s Base Compensation for each missed Exhibition, Regular Season, Play-In, or playoff game; and
- When a player is, for proper cause other than the player’s failure or refusal to render the services required by a Player Contract or this Agreement, suspended by his Team or the NBA in accordance with the terms of such Contract or this Agreement, the Current Base Compensation payable to the player for the year of the Contract during which such suspension occurs shall be reduced by (i) 1/145th of the player’s Base Compensation for each missed Exhibition, Regular Season, Play-In, or playoff game for any suspension of fewer than twenty (20) games and (ii) 1/110th of the player’s Base Compensation for each missed Exhibition, Regular Season, Play-In, or playoff game for any suspension of twenty (20) games or more (including any indefinite suspension that persists for twenty (20) games or more or consecutive suspensions for continuing acts or conduct that persist for twenty (20) games or more).
- Notwithstanding Section 1(a)(ii) above, for the first game in a Season for which a player is suspended by the NBA, if such suspension is for conduct on the playing court (as that term is defined in Article XXXI, Section 9(c)) and is a one-game suspension, the Current Base Compensation payable to the player for the year of the Contract during which such suspension occurs shall be reduced by an amount equal to the player’s Current Base Compensation for such Season multiplied by a fraction, the numerator of which is one (1) and the denominator of which is the number of days in the Regular Season. For clarity, for any other game for which such player is suspended by his Team or the NBA during such Season, the Current Base Compensation payable to the player for the year of the Contract during which such suspension occurs shall be reduced in accordance with Section 1(a) above.
- In the event that, at the start of a Regular Season, (x) a player is a Free Agent who has games remaining to be served on a suspension that was previously imposed on him by the NBA either when he was under a Contract with a Team or when he was a Free Agent, and (y) such player, but for the remainder of the suspension to be served, is otherwise eligible and able to play, then:
- The player’s suspension shall be deemed to have been served as of the day following the day on which the Team to which he was under contract when the suspension was imposed (or, if he was not under contract when the suspension was imposed, the last Team to which he was under contract prior to the suspension being imposed) has played a number of games in such Regular Season equal to one and one-half (1.5) times the number of games that remained to be served on the term of the suspension as of the first day of such Regular Season (rounded up to the nearest whole number); and
- If the player subsequently signs one or more Player Contracts, the Current Base Compensation payable to the player for such Season (or, if he does not sign a Player Contract during such Regular Season, the first subsequent Season thereafter for which he signs a Player Contract) under one or more Contracts shall be reduced in accordance with Section 1(a) above for the number of games that remained to be served on the term of the suspension as of the first day of such Regular Season.
6.2 Practices.
- When a player, without proper and reasonable excuse, fails to attend a practice session scheduled by his Team, he shall be subject to the following discipline: (i) for the first missed practice during a Season – $2,500; (ii) for the second missed practice during such Season – $5,000; (iii) for the third missed practice during such Season – $7,500; and (iv) for the fourth (or any additional) missed practice during such Season – such discipline as is reasonable under the circumstances.
- Notwithstanding Section 2(a) above, when a player, without proper and reasonable excuse, refuses or intentionally fails to attend any practice session scheduled by his Team, he shall be subject to such discipline as is reasonable under the circumstances.
6.3 Promotional Appearances.
When a player, without proper and reasonable excuse, fails or refuses to attend a promotional appearance required by and in accordance with Article II, Section 8 and Paragraph 13(d) of the Uniform Player Contract, he shall be fined $20,000.
6.4 Mandatory Programs.
- NBA players shall be required to attend and participate in educational and life skills programs designated as “mandatory programs” by the NBA and the Players Association. Such “mandatory programs,” which shall be jointly administered by the NBA and the Players Association, shall include a Rookie Transition Program (for rookies only), Team Awareness Meetings (which shall cover, among other things, substance abuse awareness, HIV awareness, gambling awareness, healthy relationships, mental health and wellness programming, and recommendations and educational materials regarding the health benefits of vaccinations recommended by the Centers for Disease Control and Prevention (CDC)), and such other programs as the NBA and the Players Association shall jointly designate as mandatory.
- When a player, without proper and reasonable excuse, fails or refuses to attend a “mandatory program,” he shall be fined $20,000 by the NBA; provided, however, that if the player misses the Rookie Transition Program, he shall be suspended for five (5) games.
- Each year, the NBA and Players Association shall work together to (i) identify players who did not attend a Rookie Transition Program (for rookies only) or a Team Awareness Meeting covering information relating to the Anti-Drug Program (e.g., because the player was signed to a Contract after such Team Awareness Meeting took place), and (ii) as soon as practicable, provide any such player with educational materials regarding the Anti-Drug Program.
6.5 Media Training, Business of Basketball, Anti-Gambling Training, and System Rules Training.
- All players shall be required each Season to attend and participate in one (1) media training session conducted by their Team and/or the NBA. If a player, without proper and reasonable excuse, fails or refuses to attend a media training session, he shall be fined $20,000.
- All players shall be required each Season to attend and participate in one (1) “business of basketball” program conducted by the Team and/or the NBA. If a player, without proper and reasonable excuse, fails or refuses to attend such program, he shall be fined $5,000. Each Team’s Governor shall attend his or her Team’s annual “business of basketball” program.
- All players shall be required each Season to attend and participate in one (1) anti-gambling training session conducted by their Team and/or the NBA. If a player, without proper and reasonable excuse, fails or refuses to attend an anti-gambling training session, he shall be fined $100,000. Each year, the NBA and Players Association shall work together to (i) identify players who did not attend a Rookie Transition Program (for rookies only) or the anti-gambling training session, and (ii) as soon as practicable, provide any such player with educational materials with information from such training session. In addition, each year the NBA shall work with the NBAGL to ensure that players in the NBAGL are provided with the same anti-gambling training that is provided to NBA players.
- Each year, the NBA and Players Association will jointly make available to players training on System rules (e.g., online or by videoconference).
6.6 Charitable Contributions.
- In the event that (i) a fine or suspension is imposed on a player, (ii) such fine or suspension-related Compensation amount is collected by the League, and (iii) the fine or suspension is not grieved pursuant to Article XXXI, then the NBA shall remit fifty percent (50%) of the amount collected to the National Basketball Players Association Foundation (the “NBPA Foundation”) or such other charitable organization selected by the Players Association that qualifies for treatment under Section 501(c)(3) of the Internal Revenue Code of 1986, as now in effect or as it may hereafter be amended (a “Section 501(c)(3) Organization”), and that is approved by the NBA (which approval shall not be unreasonably withheld) (both hereinafter, the “NBPA-Selected Charitable Organization”); provided, however, that any contributions made by the NBPA-Selected Charitable Organization to a player charitable foundation cannot be intended to reimburse the player for the financial impact of a fine or suspension. The NBA shall remit the remaining fifty percent (50%) of the amount collected to a Section 501(c)(3) Organization selected by the NBA and approved by the Players Association, which approval shall not be unreasonably withheld. For purposes of this Section 6(a), and with respect to any suspension imposed on a player by the NBA of five (5) games or more, the NBA shall be required to collect a suspension-related Compensation amount equal to at least five (5) games of such suspension.
- The remittances made by the NBA pursuant to this Section 6 shall be made annually, ninety (90) days following the Accountants’ (as defined in Article VII, Section 10(a)) submission to the NBA and the Players Association of a final Audit Report or an Interim Designated Share Audit Report (as defined in Article VII, Section 10(a)(1)) for the Salary Cap Year covering the Season during which the fines and suspension-related Compensation amounts are collected by the NBA.
- If a timely Grievance is filed under Article XXXI challenging a fine or suspension of the kind designated in Section 6(a) above, and, following the disposition of the Grievance, the Grievance Arbitrator determines that all or part of the fine or suspension-related amount (plus any accrued interest thereon) is payable by the player to the League, then the League shall remit the amount collected by the League (plus any interest) in accordance with the provisions of Sections 6(a) and (b) above.
6.7 Unlawful Violence.
When a player is convicted of (including by a plea of guilty, no contest, or nolo contendere to) a violent felony, he shall immediately be suspended by the NBA for a minimum of ten (10) games.
6.8 Counseling for Violent Misconduct.
- In addition to any other rights a Team or the NBA may have by contract or law, when the NBA and the Players Association agree that there is reasonable cause to believe that a player has engaged in any type of off-court violent conduct, the player will (if the NBA and the Players Association so agree) be required to undergo a clinical evaluation by a neutral expert and, if deemed necessary by such expert, appropriate counseling, with such evaluation and counseling program to be developed and supervised by the NBA and the Players Association, unless the player has engaged in acts covered by the Joint NBA/NBPA Policy on Domestic Violence, Sexual Assault, and Child Abuse, in which case the terms of that Policy shall apply. For purposes of this paragraph, “violent conduct” shall include, but not be limited to, any conduct involving the use or threat of physical violence or the use of, or threat to use, a deadly weapon, any conduct which could be categorized as a “hate crime,” and any conduct involving dog fighting or animal cruelty.
- Any player who is convicted of (including by a plea of guilty, no contest, or nolo contendere to) a crime involving violent conduct shall be required to attend at least five (5) counseling sessions with a therapist or counselor jointly selected by the NBA and the Players Association, unless the player has engaged in acts covered by the Joint NBA/NBPA Policy on Domestic Violence, Sexual Assault, and Child Abuse, in which case the terms of that Policy shall apply. These sessions shall be in addition to any discipline imposed on the player by the NBA for the conduct underlying his conviction. The therapist or counselor who is jointly selected by the NBA and the Players Association shall determine the total number of counseling sessions to be attended by the player; however, in no event shall a player be required to attend more than ten (10) sessions.
- Any player who, after being notified in writing by the NBA that he is required to undergo the clinical evaluation and/or counseling program authorized by Section 8(a) or 8(b) above, refuses or fails, without a reasonable explanation, to attend or participate in such evaluation and counseling program within seventy-two (72) hours following such notice, shall be fined by the NBA in the amount of $10,000 for each day following such seventy-two (72) hours that the player refuses or fails to participate in such program.
6.9 Firearms and Other Weapons.
- Whenever a player is physically present at a facility or venue owned, operated, or being used by a Team, the NBA, or any League-related entity, and whenever a player is traveling on any NBA-related business, whether on behalf of the player’s Team, the NBA, or any League-related entity, such player shall not possess a firearm of any kind or any other deadly weapon. For purposes of the foregoing, “a facility or venue” includes, but is not limited to: an arena; a practice facility; a Team or League office or facility; a facility or venue used for an NBA event (such as an In-Season Tournament, All-Star, or NBA playoff venue); and the site of a promotional or charitable appearance.
- At the commencement of each Season, and if the player owns or possesses any firearm, the player will provide the Team with proof that the player possesses a license or registration as required by law for any such firearm. Each player is also required to provide the Team with proof of any modifications or additions made to this information during the Season.
- Any violation of Section 9(a) or Section 9(b) above shall be considered conduct prejudicial to the NBA under Article 35(d) of the NBA Constitution and By-Laws, and shall therefore subject the player to discipline by the NBA in accordance with such Article.
6.10 One Penalty.
- The NBA and a Team shall not discipline a player for the same act or conduct. The NBA’s disciplinary action will preclude or supersede disciplinary action by any Team for the same act or conduct.
- When the NBA becomes aware of any potential or actual disciplinary action which may be or has been imposed by a Team for a player’s act or conduct, the NBA may, within forty-eight (48) hours, prohibit the discipline from being imposed or rescind the discipline that has been imposed, as applicable. If the NBA prohibits or rescinds the discipline, only the NBA shall thereafter be permitted to impose discipline on the player for that act or conduct. If the NBA does not prohibit or rescind the Team’s discipline, the Team may impose its proposed discipline or the Team’s discipline will remain in effect, as applicable, and, if the Team’s discipline becomes effective or remains in effect, the NBA may not thereafter impose discipline on the player for that act or conduct.
- Notwithstanding anything to the contrary contained in Section 10(a) or 10(b), (i) the same act or conduct by a player may result in both a termination of the player’s Uniform Player Contract by his Team and the suspension of the player by the NBA if the egregious nature of the act or conduct is so lacking in justification as to warrant such double penalty, and (ii) both the NBA and the Team to which a player is traded may impose discipline for a player’s failure to report for a trade in accordance with Paragraph 10(d) of the Uniform Player Contract.
6.11 League Investigations.
- Players are required to cooperate with investigations of alleged player misconduct conducted by the NBA. Failure to so cooperate, in the absence of a reasonable apprehension of criminal prosecution, will subject the player to reasonable fines and/or suspensions imposed by the NBA. Any investigations of alleged misconduct that is covered by the Joint NBA/NBPA Policy on Domestic Violence, Sexual Assault, and Child Abuse shall be governed by the terms of that Policy.
- Except as set forth in Section 11(c) below, the NBA shall provide the Players Association with such advance notice as is reasonable in the circumstances of any interview or meeting to be held (in person or by telephone) between an NBA representative and a player under investigation by the NBA for alleged misconduct, and shall invite a representative of the Players Association to participate or attend. The failure or inability of a Players Association representative to participate in or attend the interview or meeting, however, shall not prevent the interview or meeting from proceeding as scheduled. A willful disregard by the NBA of its obligation to notify the Players Association as provided for by this Section 11(b) shall bar the NBA from using as evidence against the player in a proceeding involving such alleged misconduct any statements made by the player in the interview or meeting conducted by the NBA representative.
- The provisions of Section 11(b) above shall not apply to interviews or meetings: (i) held by the NBA as part of an investigation with respect to alleged player misconduct that occurred at the site of a game; and (ii) which take place during the course of, or immediately preceding or following, such game. With respect to any such interview or meeting, the NBA’s only obligation shall be to provide notice to the Players Association that the NBA will be conducting an investigation and holding an interview or meeting in connection therewith. Such notice may be given by telephone at a telephone number or by email at an email address to be designated in writing by the Players Association.
6.12 On-Court Conduct.
- The parties have agreed to all of the rules governing the conduct of players on the playing court (as that term is defined in Article XXXI, Section 9(c) below) that are contained in the Player Conduct, NBA Uniform Requirements, Dress Code, and Other Player-Related Matters Memo distributed by the NBA and dated June 1, 2023. Beginning with the 2023-24 Season, the NBA and the Players Association will bargain over any new rules governing the conduct of players on the playing court (including disciplinary penalties associated therewith) or any change to the agreed-upon rules governing the conduct of players on the playing court (including disciplinary penalties associated therewith); provided, however, that this obligation to bargain does not apply to the official playing rules of the NBA (or any change or modification thereof) or any rule affecting the integrity of the game or game play (or any change or modification thereof), except with respect to any change or modification to the disciplinary penalties associated with a player’s violation of such rules.
- Nothing in Section 12(a) above shall be construed to modify or alter (i) the NBA’s existing disciplinary authority in this Agreement or Article 35 of the NBA Constitution governing the conduct of players on the playing court (as that term is defined in Article XXXI, Section 9(c) below), including, but not limited to, the NBA’s ability to provide notice to players that it regards a type of on-court conduct to be violative of its disciplinary standards, (ii) the NBA’s existing disciplinary authority in this Agreement and/or Article 35 of the NBA Constitution governing off-court conduct, or (iii) Article XXXVII, Section 2 of this Agreement governing player uniforms.
- Prior to the imposition of a suspension on a player for conduct on the playing court (as defined in Article XXXI, Section 9(c)), the player will have the opportunity to request a telephonic meeting with the President, League Operations, the Executive Vice President, Basketball Operations, or their designee to discuss the incident and be heard as to why a suspension is unwarranted; provided, however, that the player must promptly notify the NBA of his desire for such a meeting, which will be scheduled to take place within a reasonable time period that will not interfere with the NBA’s investigatory process and will not preclude the NBA from issuing a suspension prior to the player’s next game. Notice to the player of a possible suspension may be given by the NBA to the Players Association by telephone at a telephone number or by email at an email address to be designated in writing by the Players Association. Notice by the player of his request for a meeting pursuant to this Section 12(c) may be provided through the Players Association on the player’s behalf, and a representative of the Players Association may participate in any such telephone call. The NBA will consider any information provided during the meeting before finalizing its decision; provided, however, that nothing contained herein will require the NBA to alter its disciplinary decision or affect any rights the player has under Article XXXI to appeal that decision.
6.13 Off-Court Conduct.
Following the imposition of discipline on a player by the NBA for off-court conduct, and upon request by the Players Association, the NBA shall identify for the Players Association the key evidence or other materials upon which the disciplinary decision was based. The foregoing obligation, including, but not limited to, the NBA’s provision of such information and the extent or nature of the information provided, shall be without prejudice to the NBA, including by not limiting the evidence or other materials upon which the NBA may rely in any proceeding relating to the discipline imposed.
6.14 Motor Vehicles.
At the commencement of each Season, and if the player owns or operates any motor vehicle, the player will provide the Team with proof that the player possesses a valid driver’s license, registration documents, and insurance for any such vehicle. For players who sign Player Contracts during the Season, the player will provide the Team with such information within fourteen (14) days following the execution of his Contract. Each player is also required to provide the Team with proof of any modifications or additions made to this information during the Season.
6.15 Player Convictions and Other Discipline Involving Alcohol or Controlled Substances.
- In addition to any other discipline imposed by the NBA for such conduct, any player who is convicted of (including by a plea of guilty, no contest, or nolo contendere to) driving while intoxicated, driving under the influence, driving under the influence of a controlled substance (if that controlled substance is not a Prohibited Substance) or any similar crime shall be required to submit to a mandatory evaluation by the Medical Director of the Anti-Drug Program. After that mandatory evaluation, the Medical Director may require the player to attend up to ten (10) substance abuse counseling sessions.
- No player shall use any Marijuana Product (defined below) while he is physically present at a facility or venue owned, operated, or being used by a Team, the NBA, or any Team- or League-related entity. Any violation of this Section 15(b) shall subject the player to discipline as is reasonable under the circumstances. With respect to discipline imposed by the NBA and/or the Team, the One Penalty rule set forth in Article VI, Section 10 of this Agreement shall apply.
6.16 Player Arrests.
A Team shall not impose discipline on a player solely on the basis of the fact that the player has been arrested. Notwithstanding the foregoing, (a) a Team may impose discipline on a player for the conduct underlying the player’s arrest if it has an independent basis for doing so, (b) nothing herein shall permit a Team to discipline a player for his failure to cooperate with a Team’s investigation of his alleged misconduct if he has a reasonable apprehension of criminal prosecution, and (c) nothing herein shall prevent a Team from precluding a player from participating in Team activities without loss of pay to the extent it otherwise has the right to do so.
6.17 Joint NBA/NBPA Policy on Domestic Violence, Sexual Assault, and Child Abuse.
The parties have agreed to the Joint NBA/NBPA Policy on Domestic Violence, Sexual Assault, and Child Abuse (and any amendments thereto), which is attached as Exhibit F hereto. Any evaluation, counseling, treatment, and/or discipline of a player for engaging in acts covered by this Policy shall be governed by the terms of the Policy.
6.18 Trades.
Any player (or, for clarity, any player representative or person acting with authority on behalf of a player) who publicly expresses a desire to be traded to another Team shall be subject to a fine and/or a suspension. The maximum fine that may be imposed by the NBA on a player pursuant to the foregoing shall be $150,000.
6.19 Player Involvement with Gaming Companies.
- As used in this Section 19, the following terms shall have the following meanings:
- “Gaming Company” means a Sports Betting Company, a Fantasy Sports Company, or any other entity that offers contests, wagers, or other transactions on which consumers can put money or other things of value at risk and the outcome of which is determined, in whole or in part, based upon the performance of NBA League players or NBA League teams in NBA League games or events.
- “Sports Betting Company” means an entity (A) that directly or indirectly offers, accepts, or facilitates wagering related to sporting events, or (B) whose operations are substantially dedicated to content related to wagering on NBA and other sporting events.
- “Fantasy Sports Company” means an entity that offers or facilitates contests in which participants submit entries in a contest (season-long, daily, or single-game), comprised of one or more selected teams or players, with the winning entries determined by the performance or statistics of the selected teams or players.
- “NBA League” means the NBA, WNBA, NBAGL, NBA 2K League, Basketball Africa League, and any other league associated with the NBA.
- Investment in Gaming Companies.
- Subject to Article XIII, a player may hold a direct or indirect ownership interest in a Gaming Company only if:
- Such interest is passive (i.e., includes no management, governance, voting, or executive role or other operational rights or roles);
- The player’s ownership interest: (1) for any entity that offers, accepts, or facilitates NBA League-related bets, contests, or other transactions, is equal to less than a one percent (1%) beneficial interest in any class of securities (or other class of ownership interests) in the entity (including via a partnership interest in a fund that owns an interest in such entity); or (2) for any entity that does not offer, accept, or facilitate NBA League-related bets, contests, or other transactions, is less than a fifty percent (50%) beneficial interest in any class of securities (or other class of ownership interests) in the entity (including via a partnership interest in a fund that owns an interest in such entity); and
- Such interest is held, and such entity operates, in compliance with all applicable laws and regulations relating to sports wagering, fantasy sports contests, or similar transactions.
- Any player who holds an ownership interest in a Gaming Company shall disclose to the League Office (attn: General Counsel) and the Players Association, within 30 days of acquiring such interest, (A) the identity of the Gaming Company in which the player holds such interest, and (B) the percentage of the Gaming Company’s overall ownership such interest represents.
- Subject to Article XIII, a player may hold a direct or indirect ownership interest in a Gaming Company only if:
- Promotion and Endorsement of Gaming Companies.
- Subject to Article XIII, a player may participate in the promotion or endorsement of a Gaming Company only if:
- Such participation is limited to (1) general brand promotion or endorsement, or (2) promotion or endorsement of betting on non-NBA League sports;
- Compensation for such participation is not determined in any respect by NBA League wagering or outcomes of NBA League games (e.g., compensation to the player may not be based on the amount wagered on NBA League games); and
- Such participation and such Gaming Company’s operation comply with all applicable laws and regulations relating to sports wagering, fantasy sports contests, or similar transactions. The operation of a Gaming Company that is party to an agreement with the NBA or a Team shall, during the term of such agreement, be deemed in compliance with this subsection (c)(i)(C).
- For clarity, no player may participate in endorsement or promotional activity of a Gaming Company where such endorsement or promotion involves NBA League-related bets or contests.
- Subject to Article XIII, a player may participate in the promotion or endorsement of a Gaming Company only if:
- For clarity, any investments in or promotions or endorsements of Gaming Companies not expressly permitted by this Section 19 are prohibited. In the event a player engages in a prohibited investment, promotion, or endorsement, then, without limiting other NBA rights or remedies, the player shall be required to promptly dispose of his ownership interest in the prohibited investment and/or immediately terminate his participation in the prohibited promotion or endorsement, as applicable.
6.20 Player Involvement with Cannabis Companies.
- As used in this Section 20, the following terms shall have the following meanings:
- “CBD” means hemp-derived compounds that have a concentration of tetrahydrocannabinol (“THC”) at or below 0.3% and contain no other form or amount of cannabis.
- “CBD Products” means supplements and other products containing CBD as an ingredient (e.g., oils, creams, drinks, pills, powders, and roll-ons), but does not mean products that meet the definition of “Marijuana Products” below or products containing any substance on the list of Prohibited Substances set forth in Exhibit I-2 to this Agreement or on Schedule I or II of the Controlled Substances Act.
- “Marijuana Company” means an entity that (A) produces or sells one or more Marijuana Products, including an entity that produces or sells both CBD Products and one or more Marijuana Products, and/or (B) produces or sells CBD Products and has an affiliate that produces or sells one or more Marijuana Products under the same or a substantially similar brand as such entity or CBD Products.
- “Marijuana Products” means supplements and other products (e.g., flower, oils, creams, drinks, pills, powders, and roll-ons) containing (A) a non-CBD form of cannabis as an ingredient, and/or (B) a concentration of THC above 0.3%. For purposes of this Section 20, any products containing both CBD and a non-CBD form of cannabis, and any products containing kratom, shall be Marijuana Products.
- Investment in Cannabis Companies.
- Subject to Section 20(b)(ii) below and Article XIII, a player may hold a direct or indirect ownership interest (whether controlling or non-controlling) in an entity that produces or sells CBD Products, provided that (A) such entity does not also produce or sell one or more products containing any Prohibited Substance or any other Schedule I or II substance under the Controlled Substances Act, and (B) such interest is held, and such entity operates, in compliance with all applicable laws and regulations.
- Subject to Article XIII, a player may hold a direct or indirect ownership interest in a Marijuana Company, provided that:
- Such interest is passive (i.e., includes no management, governance, voting, or executive role or other operational rights or roles); and
- The player’s ownership interest is equal to less than a fifty percent (50%) beneficial interest in any class of securities (or other class of ownership interests) in such Marijuana Company (including via a partnership interest in a fund that owns an interest in such Marijuana Company); and
- Such interest is held, and such entity operates, in compliance with all applicable laws and regulations.
- For clarity, except as set forth in Section 20(b)(ii) above, no player may hold any ownership interest (whether direct or indirect, including via a partnership interest in a fund) in an entity that produces or sells any products containing any Prohibited Substance or any other Schedule I or II substance under the Controlled Substances Act.
- Promotion and Endorsement of Cannabis Companies.
- Subject to Article XIII, a player may participate in the promotion or endorsement of any brand, product, or service of an entity that produces or sells CBD Products, provided that such entity (A) is not a Marijuana Company, (B) does not also produce or sell one or more products containing any Prohibited Substance or any other Schedule I or II substance under the Controlled Substances Act, and (C) such participation and such entity’s operation comply with all applicable laws and regulations.
- Notwithstanding Section 20(c)(i) above, a player may request permission from the NBA and the Players Association to promote or endorse any CBD Products that are produced or sold by a Marijuana Company. Such request must be in writing and include (A) a complete list of the products that the Marijuana Company produces or sells, (B) a complete list of all ingredients of such products, (C) a description of the player’s proposed promotion or endorsement activity for the Marijuana Company’s CBD Products, and (D) a detailed summary of the non-financial terms of any proposed promotion or endorsement agreement between the player and the Marijuana Company. Unless a player’s request has been approved in writing by the NBA and the Players Association, the player may not promote or endorse any CBD Products that are produced or sold by a Marijuana Company.
- Upon receiving a player’s written request pursuant to Section 20(c)(ii) above, the NBA and the Players Association shall each consider and determine whether to approve such request. Without limiting such approval right of the NBA and the Players Association, the promotion or endorsement by a player of a CBD Product that is produced or sold by a Marijuana Company (A) will not be permitted if such CBD Product is associated by the Marijuana Company with any Marijuana Product (e.g., the CBD Product is marketed or sold under a brand that also includes or refers to Marijuana Products) or if any proposed promotion creates a reasonable risk of public confusion with any Marijuana Product, and (B) if approved, shall be subject to any terms and conditions imposed by the NBA and/or the Players Association. In the event that any information provided in a player’s request is inaccurate at the time it is submitted to the NBA or the Players Association, or in the event that such information later becomes inaccurate, the NBA or the Players Association may in their discretion withdraw their approval of the player’s request.
- For clarity, any investments in or promotions or endorsements of entities that produce or sell products containing a form of cannabis (including, for clarity, a CBD form of cannabis) not expressly permitted by this Section 20 are prohibited. In the event a player engages in a prohibited investment, promotion, or endorsement, then, without limiting other NBA rights or remedies, the player shall be required to promptly dispose of his ownership interest in the prohibited investment and/or immediately terminate his participation in the prohibited promotion or endorsement, as applicable.
6.21 Gambling by Former NBAGL Players.
- A player shall be subject to discipline imposed by the NBA for violations of NBAGL rules pertaining to gambling involving the NBA, NBAGL, and/or NBA-affiliated leagues that were committed during any prior period of time during which the player was subject to NBAGL rules relating to gambling. The NBA may impose such discipline only in circumstances where, and only to the extent that, discipline would be authorized by the NBA under this Agreement for the same conduct under NBA rules pertaining to gambling by players involving the NBA, NBAGL, and/or NBA-affiliated leagues.
- Any player suspended by the NBAGL for violations of the NBAGL rules pertaining to gambling involving the NBA, NBAGL, and/or NBA-affiliated leagues who signs a Uniform Player Contract before the full term of the suspension is served shall serve the remainder of the suspension in the NBA. In addition, any player suspended under NBAGL rules pertaining to gambling involving the NBA, NBAGL, and/or NBA-affiliated leagues whose NBAGL contract ends before the full term of the suspension is served shall be subject to Article VI, Section 1(c) of this Agreement with respect to the NBAGL suspension if, at the start of the following NBA Regular Season, he is a Free Agent who has games remaining to be served on the NBAGL suspension. For purposes of Article VI, Section 1(c), the “Team to which he was under contract when the suspension was imposed” shall be deemed to be the NBA team, if any, with which the player first signs a Player Contract following imposition of the NBAGL suspension.