By Andrew Grossman, Associated PressThe National Basketball Association (NBA) and the NFL’s Philadelphia Eagles won’t have to pay their players until 2021 to reduce a tax that’s been a thorn in the side of the league for decades.
The NFL and NBA players will receive $2.1 billion over the next 10 years as part of a tax relief deal that was negotiated by the two sides.
The deal was struck in March after years of negotiations.
It will also reduce the estate tax, a tax levied on estates of at least $5.6 million.
The two sides will also eliminate a $1.9 billion tax break for players who move teams.
The NFL and NFLPA reached an agreement to reduce the tax by $2 billion over 10 years, including a $750 million tax break that was paid for by the league.
The two sides agreed to extend the 10-year tax relief agreement through 2021 and to make $1 billion in revenue-neutral spending cuts in 2021 and 2024.
The NBA will also make $800 million in revenue neutral spending cuts, including $200 million in new spending on player salaries, $80 million in additional cuts for reserve and injured players, $50 million in cuts for the All-Star Game and the NBA All-Rookie team and a $100 million in savings on salaries and incentives.
The NBA and NFL had been discussing a possible deal for years, with both sides wanting to resolve the tax issue before the 2020 season.
The parties had been working to reach an agreement, but talks broke down in the middle of the year and neither side had an agreement in place by the time the 2019-20 season rolled around.
The agreement between the NFL and the NHL was signed by commissioner Roger Goodell and commissioner Paul Tagliabue on Thursday.
NFL commissioner Roger Mara said the league is pleased to be able to support the tax relief for the players and the players are very happy with the outcome.
“I am thrilled to have reached an important milestone in this agreement that will benefit the millions of players who pay their dues every day, while also helping to create a better future for our players,” Mara said.