NBA Free Agency 2017: What is the moratorium period?

There are a lot of complex details that come with the beginning of the NBA’s free agency, so here’s an explanation on the moratorium period.

In the NBA’s free agency, there tends to be a lot of confusion on some of the rules and regulations the league sets to keep things fair when it comes to signing some of the biggest stars in the game. One of those that not many people will understand is the moratorium period, and it deserves an explanation.

In real life economics, a moratorium period is simply a delay in making payments, whether it’s with loans or debts. In the basketball world, the period is basically the same thing, only dealing with contracts and negotiations.

The moratorium period runs from July 1 to July 6, and prevents free agents from signing deals while they negotiate with teams. Players can start negotiating with teams on July 1, but they can’t officially sign any deals until the moratorium is over. The period used to be three days longer, and the DeAndre Jordan situation from a few summers ago involving the Dallas Mavericks and a last-second switch on a deal with the team to return to the Los Angeles Clippers changed the whole game. The league cut the period in half, hoping to eliminate players like Jordan from backing out of deals like they did.

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The NBA’s fiscal year ends June 30, and the moratorium period serves as a time for the NBA to look at their accounting and make sure everything is all set before everyone begins to spend money in the large scale that free agency allows them to.

The period provides for a set time for players to meet with teams that they’re interested in, and keep everything fair on both ends. It lets all teams have the chance to meet with players and negotiate fairly, while still giving players enough time before the period ends to figure out their next move and know the financial details.