NBA

NBA settles with Players Association; Lin & Novak to retain Bird rights

The NBA announced Friday evening that it has reached a settlement with the NBA Players Association in the Bird Rights case — ensuring Jeremy Lin and Steve Novak will retain their Bird rights when free agency begins at 12:01 a.m. Sunday, and giving the Knicks crucial flexibility under the salary cap.

The union agreed to limit the ruling’s scope in exchange for the NBA dropping its appeal. The rule now reads that players who are claimed through waivers will keep their “Early Bird” rights like they have been traded, but will only obtain full Bird rights unless they are claimed during the waiver process.

While the ruling also impacts Clippers guard Chauncey Billups and Trailblazers forward J.J. Hickson, it’s biggest impact will be on the Knicks, who now can re-sign both Lin and Novak while keeping their mid-level exception to add an additional free agent.

tbontemps@nypost.com