PBA revises rules on contracts, rookie draft eligibility

The Philippine Basketball Association (PBA) on Saturday announced some changes to its rules on expired contracts, live contracts, and rookie eligibility to “keep up with the changes happening around the world.”

The league has had to respond to contract and draft-related issues in the past few months, from PBA players opting to skip singing a new contract with their mother club and PBA players and draft eligible player opting to sign with teams from overseas leagues.

Expired contracts and restricted free agency

In terms of expired contracts, the league set a period of 30 days for PBA teams to negotiate a new contract with its player.

If the player does not accept the offer his team, he can entertain offers from other teams after the 30th day – but his mother team will be allowed to match the offer and retain the rights to the player, if they do so within five days from the date of receipt of offer.

If that player refuses to sign with his mother team that matched the offer, then the player will have to sit out a total of five years before he can return to the league. During that time period, his mother team will continue to hold his rights, but the player can return as an unrestricted free agent after the five year-period is up.

The player can also choose to return to the league and accept the matched offer of the mother team, provided he does so within two years of his contract expiring.

Take for example, Ray Parks, who has yet to sign a new contract with the TNT Tropang Giga, but was recently allowed by the team to play in the Japan Professional Basketball League (B.League).

While he is allowed to play in Japan, does TNT still hold the rights to Parks in the PBA?

"TNT still has rights over him until he comes back, but in the meantime, he can join other leagues for five years," the league's legal counsel Atty. Melvin Mendoza said.

Live contracts

For live contracts, the league said these should not be pre-terminated, except for medical reasons.

Retirement or leaves of absences, according to the PBA, are considered as pre-terminations of contract. In the event this happens, the player pre-terminating their contract will be banned from the league and the team will be fined P20 million.

However, the league said if a player alone refuses to honor the live contract, the team or the league may avail of legal remedies and the player may be banned from the PBA.

Draft eligibility and opting out

In terms of rookie eligibility, the league said that players eligible for the next draft are those 22 years old and above but those at least 19 years of age with a minimum of two years in college may also become eligibile.

Should Kai Sotto, who will play for the Adelaide 36ers in the Australia National Basketball League, hypothetically decide to join the PBA, the league said he can take the 22-year old rule path.

Players eligible to join the draft but opt not to will be able to do so, provided they will sit out for five years before eventually joining the draft. The player can also decide to join the PBA within three years from the date of eligibility, but they will be drafted through a special lottery.

Asked where Thirdy Ravena falls should he decide to join the PBA, then this rule on the three years of eligibility shall be applicable.

Rookie contracts

According to the league, if a drafted player fails to agree with the terms of contract, then the player will sit out for five years and the team can assign its rights over the player within the said period.

The maximum salary cap for the top three draftees will also be lifted. However, a rookie's salary should not exceed the team’s maximum salary cap.

Fil-foreign rookies

The league also said Filipino-foreigners can only apply for the draft until they are 30 years old. Otherwise, they cannot play anymore in the PBA.

Maurice Shaw, for example, who was 35 years old when he was drafted back in 2019, will not be allowed to join the draft if he applied for this year's draft.

Keeping up with changes

PBA commissioner Willie Marcial said these revisions are made to keep up with the changes happening in the professional basketball scene around the world.

"Things are evolving and we need to adjust," Marcial said. "I'm sure if I am not the commissioner anymore, things will continue to change. We will adapt to what is appropriate at the moment because we see the need to do so."

Deputy commissioner Eric Castro echoed Marcial's statement. "We want the PBA to be the employer of choice even if the leagues in our neighboring Asian countries are growing," he said.

The league's study group which revisited the existing rules and polices of the was headed by PBA Board of Governors vice chairman Bobby Rosales.

Included in the group are former commissioner Chito Salud, former Philippine Basketball League commissioner and laywer Ogie Narvasa, lawyer Alberto Agra of the Philippine Sports Commission, Marcial, Castro, Mendoza, and veteran coach Joe Lipa.

Marcial said no players were included in the formation of the study group, but they had resource persons such as people from the media.

The league said it will release the rules to the teams tomorrow, adding that the team governors are already aware of the new policies.

—JMB, GMA News