New York, New York - The NBA and the players union said Wednesday the new collective bargaining agreement has been signed by both parties, just in time for the start of free agency on Friday.

The league and players had ratified the seven-year deal in April and it will take effect on Saturday.

Although it is slated to run through the 2029-30 season, either side can opt out a year early, but must declare its intention to do so by October 15, 2028.

The sides had agreed in principle on a new deal on April 1, when the league was preparing to opt out of the current collective bargaining agreement.

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The league said Wednesday that the full "long-form version" of the contract has now been completed, signed, and circulated.

The new deal includes new penalties for high-spending teams that flout salary cap restrictions and incorporates the long-discussed in-season tournament similar to cup competitions familiar in European soccer.

Restrictions on the use of marijuana, now legal in several US states, have been eased, and the agreement spells out how players can invest in cannabis companies as well as sports betting companies.