The NBA announced Monday it reached an agreement with the National Basketball Players Association to push the deadline to opt out of the collective bargaining agreement from Wednesday to March 31.

ESPN's Adrian Wojnarowski noted the sides extended the deadline for a second time:

"The NBA's board of governors voted Friday to give the league's labor relations committee the approval to give notice of a June 30 opt-out on a labor deal or extend that opt-out again, sources told ESPN. The league and union's expected decision to extend that date for a second time is rooted in the belief that there's enough common ground in discussions to keep pursuing an early labor deal -- without inviting the uncertainty that would come out of declaring an opt-out."

The sides are clearly incentivized to avoid the opt-out. Absent a new deal, the expiration of the CBA would grind the NBA's business to a halt.

In July, NBA Commissioner Adam Silver announced the league hit $10 billion in revenue for the first time with the 2021-22 season. Financially, the good times are rolling, and that can be helpful when it's time to work out a new labor agreement.

The NBA and NBPA might need to clear big hurdles before finalizing a new CBA, though.

Wojnarowski reported in October that the league was "pursuing the implementation of an upper spending limit," which would effectively operate as a hard salary cap.

The idea is to help teams in smaller markets bridge the financial divide with rivals in bigger markets. One downside is that smaller-market franchises that are supposed to benefit could be penalized if they build title contenders and have to dismantle their teams even if they are willing to enter what would have been the luxury tax.

Wojnarowski cited other issues that will need to be addressed, such as the one-and-done rule for NBA eligibility and load management for the league's top names.