For rookies just starting out in the NBA, the world of contracts can be a little bit daunting. With so many numbers, clauses, and terms to keep track of, it can be difficult to know exactly what you`re signing up for. But fear not – in this article, we`ll break down the basics of how rookie NBA contracts work.
First off, let`s talk about the salary cap. The NBA imposes a cap on how much each team is allowed to spend on their players. The exact number changes from year to year, but for the 2020-2021 season, the cap is set at $109.1 million. This means that if a team wants to sign a rookie, they have to make sure that they have enough money available under the cap to do so.
Now let`s talk about the structure of rookie contracts. Most NBA contracts are guaranteed, meaning that the player is guaranteed to receive the full amount of money specified in the contract, regardless of whether or not they actually play. However, rookie contracts are a little bit different. The first two years of a rookie contract are guaranteed, but the third and fourth years are not. This means that if a team decides that they don`t want to keep a player after their second year, they can cut them without having to pay out the rest of the contract.
So, how much money can a rookie expect to make? Well, that depends on where they were drafted. The NBA has a rookie scale, which sets the salaries for first-round picks based on their draft position. For example, in the 2020 draft, the first overall pick (Anthony Edwards) will make $9.8 million over the first two years of his contract, while the 30th overall pick (Desmond Bane) will make $4 million over the same period.
Second-round picks, on the other hand, don`t have a set salary scale. Instead, their contracts are negotiated on a case-by-case basis. However, the maximum salary that a second-round pick can make is the same as the minimum salary for a first-round pick.
There are a few other things to keep in mind when it comes to rookie contracts. For example, players can negotiate bonuses for things like making the All-Star team or being named Rookie of the Year. Additionally, players on rookie contracts are not eligible for unrestricted free agency until they have completed four years in the league.
In summary, rookie NBA contracts are structured differently from standard NBA contracts, with the first two years being guaranteed and the third and fourth years being non-guaranteed. Salaries for first-round picks are set by the rookie scale, while second-round picks negotiate their contracts individually. It may seem complicated, but with a little bit of understanding, rookies can navigate the world of contracts and focus on what really matters – playing ball.
