The National Basketball Association said Thursday it will begin a lockout of its players at 12:01 a.m. EDT on July 1 until it reaches a collective bargaining agreement with the league's players association.

NBA Deputy Commissioner Adam Silver said the league under the current agreement has created a broken system that produced huge financial losses for our teams.

He said there is a need for a sustainable business model.

We have made several proposals to the union, including a deal targeting $2 billion annually as the players' share -- an average of approximately $5 million per player that could increase along with league revenue growth, said Silver.

He said parts of the proposal would better align players' pay with performance. The National Basquetball Players Association represents the league's players.

He said the NBA would continue to make every effort to reach a deal that is fair to the league's teams, players fans and the game.

With a lockout in place, players won't receive salaries or be able to use team facilities, teams will not make any player transactions and will not facilitate or conduct any camps, exhibitions, practices, workouts, coaching sessions, or team meetings.