US: NBA to allow players to invest in cannabis companies

The National Basketball Association (NBA) and its players' union have officially signed a collective bargaining agreement that removes cannabis from the league’s banned substances list and lays out rules allowing players to invest in and promote cannabis brands—with certain exceptions.

About two months after NBA and National Basketball Players Association (NBPA) reached an agreement on the seven-year contract, it has now been signed and enters into force this weekend. The 676-page document contains a number of cannabis provisions—though arguably the most impactful is the removal of cannabis from the list of prohibited substances for players.

Players will also be allowed to “hold a direct or indirect ownership interest (whether controlling or non-controlling) in an entity that produces or sells CBD Products,” which is defined as cannabis containing up to 0.3 percent THC by dry weight, consistent with the federal definition of legal hemp.

They can also invest in cannabis companies, as long as the investment is passive and the player’s ownership is less than 50 percent of the business.

Another section of the collective bargaining agreement says that players “may participate in the promotion or endorsement of any brand, product, or service of an entity that produces or sells CBD Products, as long as the entity isn’t a cannabis company.


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