Unlike the MLB and NFL, players in the NBA have a maximum salary that they can make in any given year. But the maximum contract is a moving target depending on several factors. Let’s breakdown the NBA Max Contract.
Q: Are all players eligible for the same max contract?
A: No. The base max contract is dependent upon how many years of service a player has in the NBA.
- A player with 6 or fewer years of experience is eligible for a maximum of 25% of the current season salary cap.
- A player with 7-9 years of experience is eligible for a maximum of 30% of the salary cap.
- A player with 10+ years of experience is eligible for a maximum of 35% of the salary cap.
Q: What about players on their rookie deal? I heard about a “Derrick Rose Rule”?
A: Correct, the NBA is full of exceptions. One of the more famous exceptions in the so-called Derrick Rose rule. The NBA allows teams to elect a maximum of two players to be considered Designated Players. A player coming off of his rookie contract is allowed to sign a 5-year maximum contract worth up to 30% of the salary cap (rather than the standard 25% for a player with 6 or less years of experience). In order for a player to eligible, they must (since the 2017 CBA):
- Be selected to an All-NBA team (at any level) in the player’s fourth season, or in two of the three seasons between his second and fourth seasons OR
- Be selected as Defensive Player of the Year in the player’s fourth season, or in two of the three seasons between his second and fourth seasons OR
- Win MVP in any season from the player’s second onward.
Q: What about the “Supermax” Contract that I keep hearing about?
A: The 2017 CBA agreement not only changed the criteria for a player to eligible for the Designated Player Extension coming off a rookie deal, but it also allowed Veteran players to be eligible for a Designated Veteran Player Extension aka the “Supermax” or sometimes referred to as the Kevin Durant rule – since it was introduced after he left the Thunder for the Warriors. At the time all teams were allowed to offer him the same salary, this rule would have allowed the Thunder to offer him more money than any other team.
The Supermax allows a player to sign for up to 35% of the salary cap. The criteria for the Supermax contract is that a player must be entering his eighth or ninth season in the NBA (normally a max would be 30% for these players), have been drafted by the team offering the contract (or traded to the team while still on his rookie contract) and:
- Make the All-NBA team (at any level) in either the season immediately before signing the extension, or two of the three previous seasons OR
- Be named NBA Defensive Player of the Year in either the season immediately before signing the extension, or two of the three previous seasons OR
- Win NBA MVP at least once in the previous three seasons.