The CBA Glossary

An explainer thing for the NBA's Collective Bargaining Agreement

Return to Index « #1 - What the salary cap is #3 - Exceptions »

Fundamental salary basics

Before getting into the weeds of salary cap exceptions and the like, a few basic principles need to be established.

Years of service Proration "Guaranteed" deals Maximum raises/decreases Roster size Season changeover date Contract options

Years of service

An NBA player's "years of service" - i.e. how many years they have played in the league - matters for more than just bragging rights. It also affects their salary, and, by association, their team's salary cap picture.

(Many years ago, it used to be the case that being on the roster for training camp and/or preseason sufficed for a year of service. Nowadays, the player must be on the roster for at least one day of the regular season, But the part about waivers counting once landed Anthony Tolliver an extra $353,000 for just one day of work. Yet another demonstration of the importance of the idiosyncracies of the CBA.)

A player's years of service is a significant determining factor in both their maximum and minimum salaries. The more years of experience a player has, the bigger the parameters are. This is a conscious choice on behalf of the NBA Player's Association - one of the two parties to the CBA - in order to protect veterans.

Proration

Proration is the process of dividing something proportionally. In the case of the NBA salary cap, it refers primarily to counting how much players get paid when signing (or being cut when unguaranteed) during a season.

Players signed during the season can sign for the remainder of the season, and players unguaranteed for a lack of skill are paid per diem for each day that they are on the roster, including partial days and time on waivers. If a player signs a minimum salary contract for the remainder of the season, then their salary is determined to be a fraction of the minimum salary scale, measured as a ratio between when they signed versus how long the season has left to run.

When calculating the amount of days remaining in a season for proration purposes, only the remaining days of the regular season are counted. This is to say, not the preseason, not the playoffs, and not the entirety of the salary cap year. The NBA distinguishes between seasons and salary cap years for this reason; see here for more.

Proration is not something solely employed with regards to the minimum salary. Other instances in which it is used include mid-season two-way salaries, and contract bonuses (including Maximum Exhibit 10 Bonus Amounts), Additionally, certain salary cap exceptions also decrease in size via proration after 10th January every season. See here for more details on that.

"Guaranteed" deals

By and large, NBA player salaries are guaranteed. But by and large, they do not have to be. And when talking about contracts being "unguaranteed", it is necessary to define what they are unguaranteed from.

This is the usual meaning of the colloquialism "unguaranteed" - But it is not the only possible one.

(i) By agreeing upon provisions (to be set forth in Exhibit 2 to a Uniform Player Contract) stating that the Base Compensation provided for by a Uniform Player Contract (as described in Exhibit 1, 1A, or 1B to such Contract) shall be, in whole or in part, and subject to the standard conditions or limitations set forth in Section 4 below (and in the form of Exhibit 2) and any additional conditions or limitations that are negotiated by the player and Team to the extent permitted in accordance with Section 4(l) below, protected (as provided for by, and in accordance with the definitions set forth in, Section 4 below) in the event that such Contract is terminated by the Team by reason of the player’s: (i) lack of skill; (ii) death not covered by an insurance policy procured by a Team for the player’s benefit (“death”); (iii) disability or unfitness to play skilled basketball resulting from a basketball-related injury not covered by an insurance policy procured by a Team for the player’s benefit (“basketball-related injury”), or disability or unfitness to play skilled basketball resulting from any injury or illness not covered by an insurance policy procured by a Team for the player’s benefit (“injury or illness”), provided that a Contract can contain protection in only one of the two categories set Article II 19 forth in this Section 3(i)(iii), and further provided that, for clarity and without limitation, protection for injury or illness shall not include protection for mental disability; and/or (iv) mental disability not covered by an insurance policy procured by a Team for the player’s benefit (“mental disability”).

(j) By agreeing upon provisions (to be set forth in Exhibit 3 to a Uniform Player Contract) limiting or eliminating the player’s right to receive his Base Compensation (in accordance with Paragraphs 7(c), 16(a)(iii), and 16(b) of the Uniform Player Contract) when the player’s disability or unfitness to play skilled basketball is caused by the re-injury of one or more injuries sustained prior to, or by the aggravation of one or more conditions that existed prior to, the execution of the Uniform Player Contract providing for such Base Compensation. Notwithstanding the foregoing, the provisions set forth in Exhibit 3 to a Uniform Player Contract shall not apply for a Season in the event such Contract is terminated during the period from the February 1 of such Season through the end of that Season.

(g) A Team’s termination of a Uniform Player Contract by reason of the player’s “lack of skill” (under Paragraph 16(a)(iii) of the Uniform Player Contract) shall be interpreted to include a termination based on the Team’s determination that, in view of the player’s level of skill (in the sole opinion of the Team), the Compensation paid (or to be paid) to the player is no longer commensurate with the Team’s financial plans or needs. The foregoing sentence shall not affect any post-termination obligation to pay Compensation that may result from Compensation protection provisions included in a Uniform Player Contract.

Section 4. Compensation Protection. (a) Lack of Skill. When a Team agrees to protect, in whole or in part, the Base Compensation provided for by a Uniform Player Contract in the event such Contract is terminated by the Team, pursuant to Paragraph 16(a)(iii) thereof, by reason of the player’s lack of skill, such agreement shall mean that, subject to any conditions or limitations set forth in this Section 4(a) or Exhibit 2 to the Uniform Player Contract, or expressly set forth elsewhere in this Agreement, notwithstanding the provisions of Paragraphs 16(a)(iii), 16(d), 16(e), and 16(g) of such Contract, the termination of such Contract by the Team on account of the player’s failure to exhibit sufficient skill or competitive ability shall in no way affect the player’s right to receive, in whole or in part, the Base Compensation payable pursuant to Exhibit 1 (or Exhibit 1A or Exhibit 1B, as applicable) to such Contract in the amounts and at the times called for by such Exhibit; provided, however, that: (i) such lack of skill does not result from the player’s participation in activities prohibited by Paragraph 12 of the Uniform Player Contract (as such Paragraph may be modified by Exhibit 5 to the Player Contract), attempted suicide, intentional self-inflicted injury, abuse of alcohol, use of any Prohibited Substance or controlled substance, abuse of or addiction to prescription drugs, conduct occurring during the 24 Article II commission of any felony for which the player is convicted (including by a plea of guilty, no contest, or nolo contendere), participation in any riot, insurrection, or war or other military activities, or failure to comply with the requirements of Paragraphs 7(d)-(i) of the Uniform Player Contract; (ii) at the time of the player’s failure to render playing services, the player is not in material breach of such Contract; (iii) if the Team, for its own benefit, seeks to procure an insurance policy covering the player’s lack of skill, the player cooperates with the Team in procuring such an insurance policy, including by, among other things, supplying all information requested of him, completing application forms, or otherwise, and submitting to all examinations and tests requested of him by or on behalf of the insurance company in connection with the Team’s efforts to procure such policy; and (iv) if the Team, for its own benefit, has procured such an insurance policy, the player cooperates (in the manner described above) with the Team and insurance company in the processing of the Team’s claim under such policy. (b) Death. When a Team agrees to protect, in whole or in part, the Base Compensation provided for by a Uniform Player Contract in the event such Contract is terminated by the Team, pursuant to Paragraph 16(a)(iv) thereof, by reason of the player’s failure to render his services thereunder, if such failure has been caused by the player’s death, such agreement shall mean that, subject to any conditions or limitations set forth in this Section 4(b) or Exhibit 2 to the Uniform Player Contract, or expressly set forth elsewhere in this Agreement, notwithstanding the provisions of Paragraphs 16(a)(iii), 16(b), 16(c), 16(d), 16(e), and 16(g) of such Contract, the termination of such Contract by the Team shall in no way affect the player’s (or his estate’s or duly appointed beneficiary’s) right to receive, in whole or in part, the Base Compensation payable pursuant to Exhibit 1 (or Exhibit 1A or Exhibit 1B, as applicable) to such Contract in the amounts and at the times called for by such Exhibit; provided, however, that: (i) such death does not result from the player’s participation in activities prohibited by Paragraph 12 of the Uniform Player Contract (as such Paragraph may be modified by Exhibit 5 to the Player Contract), suicide, intentional self-inflicted injury, abuse of alcohol, use of any Prohibited Substance or controlled substance, abuse of or addiction to prescription drugs, conduct occurring during the commission of any felony for which the player is convicted (including by a plea of guilty, no contest, or nolo contendere), participation in any riot, insurrection, or war or other military activities, or failure to comply with the requirements of Paragraphs 7(d)-(i) of the Uniform Player Contract; (ii) at the time of the player’s failure to render Article II 25 playing services, the player is not in material breach of such Contract; (iii) if the Team, for its own benefit, seeks to procure an insurance policy covering the player’s death, the player cooperates with the Team in procuring such an insurance policy, including by, among other things, supplying all information requested of him, completing application forms, or otherwise, and submitting to all examinations and tests requested of him by or on behalf of the insurance company in connection with the Team’s efforts to procure such policy; and (iv) if the Team, for its own benefit, has procured such an insurance policy, the player’s estate and/or duly appointed beneficiary cooperates (in the manner described above) with the Team and insurance company in the processing of the Team’s claim under such policy. (c) Basketball-Related Injury. When a Team agrees to protect, in whole or in part, the Base Compensation provided for by a Uniform Player Contract in the event such Contract is terminated by the Team, pursuant to Paragraph 16(a)(iv) thereof, by reason of the player’s failure to render his services thereunder, if such failure has been caused by the player’s disability and/or unfitness to play skilled basketball as a direct result of an injury sustained while participating in any basketball practice or game played for the Team, such agreement shall mean that, subject to any conditions or limitations set forth in this Section 4(c) or Exhibit 2 to the Uniform Player Contract, or expressly set forth elsewhere in this Agreement, notwithstanding the provisions of Paragraphs 7(b), 7(c), 16(a)(iii), 16(b), 16(c), 16(d), and 16(g) of such Contract, the termination of such Contract by the Team shall in no way affect the player’s right to receive, in whole or in part, the Base Compensation payable pursuant to Exhibit 1 (or Exhibit 1A or Exhibit 1B, as applicable) to such Contract in the amounts and at the times called for by such Exhibit; provided, however, that: (i) such injury does not result from the player’s participation in activities prohibited by Paragraph 12 of the Uniform Player Contract (as such Paragraph may be modified in Exhibit 5 to the Player Contract), attempted suicide, intentional self-inflicted injury, abuse of alcohol, use of any Prohibited Substance or controlled substance, abuse of or addiction to prescription drugs, conduct occurring during the commission of any felony for which the player is convicted (including by a plea of guilty, no contest, or nolo contendere), participation in any riot, insurrection, or war or other military activities, or failure to comply with the requirements of Paragraphs 7(d)-(i) of the Uniform Player Contract; (ii) at the time of the player’s termination, the player is not in material breach of such Contract; (iii) if the Team, for its own benefit, seeks to procure an insurance policy covering the player’s 26 Article II injury, the player cooperates with the Team in procuring such an insurance policy, including by, among other things, supplying all information requested of him, completing application forms, or otherwise, and submitting to all examinations and tests requested of him by or on behalf of the insurance company in connection with the Team’s efforts to procure such policy; and (iv) if the Team, for its own benefit, has procured such an insurance policy, the player cooperates (in the manner described above) with the Team and the insurance company in the processing of the Team’s claim under such policy. (d) Injury or Illness. When a Team agrees to protect, in whole or in part, the Base Compensation provided for by a Uniform Player Contract in the event such contract is terminated by the Team, pursuant to Paragraph 16(a)(iv) thereof, by reason of the player’s failure to render his services thereunder, if such failure has been caused by an injury, illness, or disability suffered or sustained by the player, such agreement shall mean that, subject to any conditions or limitations set forth in this Section 4(d) or Exhibit 2 to the Uniform Player Contract, or expressly set forth elsewhere in this Agreement, notwithstanding the provisions of Paragraphs 7(b), 7(c), 16(a)(iii), 16(b), 16(c), 16(d), and 16(g) of such Contract, the termination of such Contract by the Team shall in no way affect the player’s right to receive, in whole or in part, the Base Compensation payable pursuant to Exhibit 1 (or Exhibit 1A or Exhibit 1B, as applicable) to such Contract in the amounts and at the times called for by such Exhibit; provided, however, that: (i) such injury, illness, or disability does not result from the player’s participation in activities prohibited by Paragraph 12 of the Uniform Player Contract (as such Paragraph may be modified in Exhibit 5 to the Player Contract), attempted suicide, intentional self-inflicted injury, abuse of alcohol, use of any Prohibited Substance or controlled substance, abuse of or addiction to prescription drugs, conduct occurring during the commission of any felony for which the player is convicted (including by a plea of guilty, no contest, or nolo contendere), participation in any riot, insurrection, or war or other military activities, or failure to comply with the requirements of Paragraphs 7(d)-(i) of the Uniform Player Contract; (ii) at the time of such injury, illness, or disability the player is not in material breach of such Contract; (iii) if the Team, for its own benefit, seeks to procure an insurance policy covering the player’s injury and/or illness, the player cooperates with the Team in procuring such an insurance policy, including by, among other things, supplying all information requested of him, completing application forms, or otherwise, and submitting to all examinations and tests requested of him Article II 27 by or on behalf of the insurance company in connection with the Team’s efforts to procure such policy; and (iv) if the Team, for its own benefit, has procured such an insurance policy, the player cooperates (in the manner described above) with the Team and insurance company in the processing of the Team’s claim under such policy. (e) Mental Disability. When a Team agrees to protect, in whole or in part, the Base Compensation provided for by a Uniform Player Contract in the event such Contract is terminated by the Team, pursuant to Paragraph 16(a)(iv) thereof, by reason of the player’s failure to render his services thereunder, if such failure has been caused by the player’s mental disability, such agreement shall mean that, subject to any conditions or limitations set forth in this Section 4(e) or Exhibit 2 to the Uniform Player Contract, or expressly set forth elsewhere in this Agreement, notwithstanding the provisions of Paragraphs 16(a)(iii), 16(b), 16(c), 16(d), 16(e), and 16(g) of such Contract, the termination of such Contract by the Team shall in no way affect the player’s (or his duly appointed legal representative’s) right to receive, in whole or in part, the Base Compensation payable pursuant to Exhibit 1 (or Exhibit 1A or Exhibit 1B, as applicable) to such Contract in the amounts and at the times called for by such Exhibit; provided, however, that: (i) such mental disability does not result from the player’s participation in activities prohibited by Paragraph 12 of the Uniform Player Contract (as such Paragraph may be modified in Exhibit 5 to the Player Contract), attempted suicide, intentional self-inflicted injury, the use of any Prohibited Substance or controlled substance, abuse of or addiction to prescription drugs, conduct occurring during the commission of any felony for which the player is convicted (including by a plea of guilty, no contest, or nolo contendere), participation in any riot, insurrection, or war or other military activities, or failure to comply with the requirements of Paragraphs 7(d)-(i) of the Uniform Player Contract; (ii) at the time of the player’s failure to render playing services, the player is not in material breach of such Contract; (iii) if the Team, for its own benefit, seeks to procure an insurance policy covering the player’s mental disability, the player (and/or his duly appointed legal representative) cooperates with the Team in procuring such an insurance policy, including by, among other things, supplying all information requested of him, completing application forms, or otherwise, and submitting to all examinations and tests requested of him by the insurance company in connection with the Team’s efforts to procure such policy; and (iv) if the Team, for its own benefit, has procured such an insurance policy, the player (and/or his duly appointed legal representative) 28 Article II cooperates (in the manner described above) with the Team and insurance company in the processing of the Team’s claim under such policy

During the term of a Player Contract, the percentage of protected Base Compensation for any future Season shall not exceed the percentage of unearned protected Base Compensation for any prior Season. Thus, for example, a Team could not provide for fifty percent (50%) Base Compensation protection in the first Season of a Player Contract and one hundred percent (100%) Base Compensation protection in the second Season of the Contract. However, the foregoing rule does not prevent a Team from providing a percentage of Base Compensation protection in a future Season that is higher than in a prior Season if the higher level of Base Compensation for the future Season is conditional and the condition cannot be satisfied until the completion of the prior Season. For example, it is Article II 29 permissible for a Contract to provide that Base Compensation protection for the first Season of a Player Contract equals fifty percent (50%) and Base Compensation protection for the second Season will be increased from fifty percent (50%) to one hundred percent (100%) if the player is on the Team’s roster as of the August 1 prior to the second Season of the Player Contract.

Specifically, Embiid's new deal was conditionally guaranteed based on how much he played. Embiid would get the full amount of money as long as he did not miss at least 25 games, or play fewer than 1,650 minutes due to injuries specifically to his back or feet, in at least two of the first three years of the deal.

Maximum raises/decreases

It would be too simple to say what the maximum annual raises in NBA contracts are. It depends significantly on the type of contract they sign; for example, the final year of a rookie scale contract can be for as much as 180.5% of the salary in the season before it.

Roster sizes

During the season, an NBA team's maximum roster size is 18 players; 15 players on regular contracts, and three on two-way deals. During the offseason, that number goes up to 21, with the addition of three .

There are various other limits in place, such as the amount of Exhibit 10 deals a team can carry at any one time, and the maximum number of veterans in a summer league roster (one of those rules that probably made sense at one point but now seems to just be burdensome). Those thresholds of 18 and 21, however, are the main ones to remember.

There exists a hardship provision in which, if an NBA team is unable to dress enough healthy players for a game, temporary extra roster spots can be granted by the league. See the hardship exemption section for more - note also that it is not the same thing as the Disabled Player Exception.

Active vs inactive -while the three two-way contract limit still exists in the offseason, there is no inactive list, and all of those 21 players are classified as active.

Each Team agrees to have at least twelve (12) and no more than fifteen (15) players on its Active List and tto have a minimum of eight (8) players on the bench for all Regular Season games; provided, however, that for no more than (a) two (2) consecutive weeks at a time, and (b) a total of twenty-eight (28) days, a Team may have eleven (11) players on its Active List.

During the period from the first day of the Regular Season through the last day of the Regular Season (or, for Teams that qualify for the “postseason” (as defined below), through the Team’s last game of the Season), each Team agrees to have either fourteen (14) or fifteen (15) players, in aggregate, on its Active List and Inactive List. (b) Notwithstanding Section 2(a), during the Regular Season a Team may have: (i) Twelve (12) or thirteen (13) players, in aggregate, on its Active List and Inactive List for no more than (A) two (2) consecutive weeks at a time, and (B) a total of twenty-eight (28) days; and (ii) More than fifteen (15) players, in aggregate, on its Active and Inactive List as a result of: (A) The NBA authorizing the Team to sign a Player Contract pursuant to the NBA’s hardship rules; and/or 430 Article XXIX (B) A player on the Team’s Active or Inactive List who (1) is unable to perform the playing services required under his Player Contract during a period in which he is subject to in-patient treatment prescribed by the Medical Director of the Anti-Drug Program, and (2) has missed at least three (3) consecutive Regular Season games because of such treatment. A day shall count toward the limits set forth in Section 2(b)(i) above if the Team had fewer than fourteen (14) players, in aggregate, on its Active List and Inactive List at the end of such day. (c) For each Two-Way Player that a Team places on the Active List or Inactive List, the minimum and maximum roster size limits set forth in Sections 2(a) and 2(b) above shall be increased by one (1) player for that Team. (d) Other than during the period set forth in Section 2(a) above, each Team agrees to have no more than twenty-one (21) players, in aggregate, on its Active List, Inactive List, and Two-Way List. (e) For purposes of this Article XXIX, “postseason” means Play-In Games and/or the playoffs

(a) During the period from the first day of the Regular Season through the last day of the Season, a Two-Way Player shall be placed on his Team’s (i) Active List or Inactive List (as applicable) while the Two-Way Player is providing services to the NBA Team, and (ii) Two-Way List at all other times. (b) A Two-Way Player is not eligible to be designated on an NBA Team’s postseason roster or participate in NBA postseason games, but is permitted to travel and practice with the Team and remain on the Team’s Inactive List during the NBA postseason; provided, however, that subject to Section 4 below, a player who was previously a Two-Way Player but who, prior to the start of the Team’s last Regular Season game, either signs a Standard NBA Contract in accordance with Article II, Section 11(h) or has his Two-Way Contract converted by the Team to a Standard NBA Contract Article XXIX 431 pursuant to Article II, Section 11(g), is eligible to be designated on an NBA Team’s postseason roster and participate in NBA postseason games.

(a) If for two consecutive Regular Seasons, NBA Teams in the aggregate employ an average of less than fourteen and one-quarter (14.25) players (excluding Two-Way Players) per Team, then for each Regular Season covered by this Agreement that follows such consecutive two-year period: (i) The requirement set forth in Section 2(a) above that each Team have either fourteen (14) or fifteen (15) players, in aggregate, on its Active and Inactive List shall be modified so that each Team would for the remainder of the term of this Agreement be required to have fifteen (15) players, in aggregate, on its Active and Inactive List; and (ii) The rule set forth in Section 2(b)(i) above allowing a Team to have twelve (12) or thirteen (13) players, in aggregate, on its Active List and Inactive List for no more than (A) two (2) consecutive weeks at a time, and (B) a total of twenty-eight (28) days shall be modified so that each Team would for the remainder of the term of this Agreement be permitted to have thirteen (13) or fourteen (14) players, in aggregate, on its Active List and Inactive List for such time periods (Sections 5(a)(i) and 5(a)(ii) together, the “League-Wide Roster Increase”). (b) If for two consecutive Regular Seasons, NBA Teams in the aggregate employ an average of less than fourteen and one-half (14.5) players (excluding Two-Way Players) per Team, then the Players Association shall have the option, exercisable within forty-five (45) days following the last day 432 Article XXIX of the second of such two consecutive Regular Seasons, to amend Article II, Section 11(b)(i) above such that, beginning on the first day of the immediately following Salary Cap Year and continuing through the remaining term of this Agreement, no Team would be permitted to have on its roster at any one time more than two (2) Two-Way Players (“PA Third Two-Way Option”). (c) The rules set forth in Sections 5(a) and 5(b) above shall be measured following each Regular Season as follows: STEP 1: For each player signed to a Standard NBA Contract (including a Rest-of-Season or 10-Day Contract) during a Regular Season, determine the number of days during such Regular Season that such player was carried on his Team’s Active List or Inactive List (hereinafter “Duty Days”). STEP 2: Determine the total Duty Days for all players for such Regular Season by adding together the results for each player from Step 1. STEP 3: Multiply (x) the number of NBA Teams that played games during the applicable Regular Season, by (y) the number of days during the Regular Season, by (z) fourteen and one-quarter (14.25) or fourteen and one-half (14.5), as applicable. STEP 4: If, for two consecutive Regular Seasons, the result in Step 2 above is less than the applicable result in Step 3 above, then the League-Wide Roster Increase and/or PA Third Two-Way Option, as applicable, will be triggered.

Season changeover date

Except in exceptional circumstances, NBA salary cap years begin on 1st July, and run through the following 30th June. For example, the 2025-26 salary cap year began on 1st July 2025, while 30th June 2025 was still technically 2024-25, even though all the games had finished and the 2025 NBA Draft had happened. This date therefore represents the pivot point at which contracts, thresholds and everything flips over.

Extraordinary events can change that date. For example, the coronavirus pandemic changed the July moratorium of 2020 into a November moratorium, and the lockout of 2011 pushed the 2011-12 moratorium all the way back to December. 1st July is the aim, however. In theory, either party could have used the exceptional circumstance of the pandemic as a reason for early CBA termination, but since it benefitted neither party to do so, the league and the Player's Association instead worked together to find workarounds.

Contract options

There is one exception to this. Since 2005, rookie scale contracts - the deals signed by almost all first-round draft picks - are permitted to have two team options, one for each of the final two seasons. This is however the only such time that multiple team options in a contract is allowed. Non-rookie scale contracts are limited to just one option, covering one season - the last one.

The Zach Randolph/Tim Duncan Stress Test

As above, the pay called for in an option year must be at least for 100% of the salary from the previous year, including base salary, likely bonuses and unlikely bonuses. This means that option years cannot pay less than the years before them, i.e. no pay cuts. This, however, has not always been enforced.

In April 2011, Zach Randolph received a four year, $66 million extension that will pay him through the 2015 season. The contract called for a $15.2 million salary in 2011/12, a $16.5 million salary in 2012/13, a $17.8 million salary in 2013/14, and a $16.5 million salary in 2014/15, which was also a player option year. Were Randolph to have an Early Termination Option, this would be allowed; the salary can go down in the season immediately following a declined ETO. But Randolph's final year was not a season immediately following an ETO - it was a player option year. The differentiation, rarely important, was here vital.

The same happened to Tim Duncan, who re-signed with the Spurs in July 2012 for salaries of $9,638,554 in 2012/13, $10,361,446 in 2013/14, and an even $10 million in 2014/15. The final year was again a player option year, not a year immediately following an early termination option, and thus the salary in the 2014/15 season should not have been any lower than the $10,361,446 of the season before it. Duncan's contract was nonetheless ratified by the league, as was Randolph's. And it seems that no one noticed, until some overbearing amateur English blogger sitting in the stands of that year's NBA summer league with a dirty old Netbook on his knees going through some salary data because apparently that is what he used to do for fun noticed, and then put his foot in it.

That blogger immediately asked some people who know about such things if they knew what had happened, then went back to his room at the Excalibur and wrote a post about it. Later that night, word came back - "the NBA has taken a look, has noticed their error, is rather embarrassed about it, and would rather you didn't say anything". Whoops. Ultimately, the remedial action taken was confusing - Randolph's final year base salary was modified upwards to match the $17.8 million salary of the year prior, while Duncan's was left unchanged. The reason for the discrepancy in remedy was never clear.

The CBA does not explicitly state an opinion on the morality of players and/or their agents who benefitted from any such discoveries paying said bloggers finders fees.

The Uniform Player Contract

- Bonuses, including both signing bonuses (money paid simply for signing), performance bonuses and conditioning/education bonuses bonuses ⓘArticle II (Uniform Player Contract) Section 3 (Allowable Amendments):

In their individual contract negotiations, a player and a Team may amend the provisions of a Uniform Player Contract, but only in the following respects:

(b) By agreeing upon provisions (to be set forth in Exhibit 1 to a Uniform Player Contract) setting forth lump sum bonuses, and the payment date for each such bonus, to be paid as a result of: (i) the player’s execution of a Uniform Player Contract or Extension (a “signing bonus”); (ii) the player’s achievement of agreed-upon benchmarks relating to his performance as a player or the Team’s performance during a particular NBA Season, subject to the limitations imposed by Paragraph 3(c) of the Uniform Player Contract and Section 12(d) below; or (iii) the player’s achievement of agreed-upon benchmarks relating to his physical condition or academic achievement (e.g., earning a college degree or completion of a certified leadership training program), including the player’s attendance at and participation in an off-season summer league and/or an off-season skill and/or conditioning program upon terms and conditions agreed upon by the Team and player (subject to the provisions of Section 12(c) below). Any amendment agreed upon pursuant to subsections (ii) or (iii) of this Section 3(b) must be structured so as to provide an incentive for positive achievement by the player and/or the Team; and any amendment agreed upon pursuant to subsection (ii) must be based upon specific numerical benchmarks or Generally Recognized League Honors. By way of example and not limitation, an amendment agreed upon pursuant to Section 3(b)(ii) may provide for the player to receive a bonus if his free-throw percentage exceeds eighty percent (80%), but may not provide for the player to receive a bonus if his free-throw percentage improves over his previous Season’s percentage. For purposes of any bonus agreed upon pursuant to subsection (ii), the performance benchmarks must be based solely upon official NBA statistics, and the determination of whether a player has earned any such performance bonus shall be made solely by reference to official NBA statistics as published on NBA.com.

- Different payment schedules to the standard NBA ones ⓘArticle II (Uniform Player Contract) Section 3 (Allowable Amendments):

In their individual contract negotiations, a player and a Team may amend the provisions of a Uniform Player Contract, but only in the following respects:

(d) By agreeing upon a Compensation payment schedule (to be set forth in Exhibit 1 to a Uniform Player Contract) different from that provided for by Paragraph 3(a) of the Uniform Player Contract; provided, however, that such amendment shall comply with the provisions of Section 3(b) above (relating to lump sum bonus payments) and Section 13(e) below and, provided, further that: (i) the only such amendment that shall be permitted with respect to any Season in which the player’s Compensation is not greater than the Minimum Player Salary shall be as described in Section 6(g) or Section 11(a)(ii) below; and (ii) the only such amendments that shall be permitted with respect to any Season in which the player’s Compensation is greater than the Minimum Player Salary shall be as follows: (y) a Uniform Player Contract may provide for the player’s Compensation (other than advances pursuant to clause (z) below and amounts paid on a deferred basis in accordance with Article XXV of this Agreement) to be paid in either twelve (12) equal semi-monthly payments or thirty-six (36) equal semi-monthly payments beginning with the first of said payments on November 1 of each year covered by the Contract and continuing with such payments on the first and fifteenth of each month until said Compensation is paid in full; and (z) a Uniform Player Contract that, at the time the Contract is signed, is fully or partially protected for lack of skill and injury or illness for a Season may provide for the player to be paid a portion of his Compensation for such Season, up to the Maximum Advance Amount as defined below, prior to November 1 of such Season. The Maximum Advance Amount for a Season shall equal the lesser of eighty percent (80%) of the amount of the player’s Compensation for such Season that is protected for lack of skill and injury or illness, or fifty percent (50%) of the player’s Base Compensation for such Season; provided that no more than twenty-five percent (25%) of the player’s Base Compensation for such Season may be paid to the player prior to the October 1 immediately preceding the first day of the Regular Season.

Years of service Proration "Guaranteed" deals Maximum raises/decreases Roster size Season changeover date Contract options

MAIN TAKEAWAYS:

- The more your team are over the luxury tax threshold, the more your team will pay.

- The more regularly your team is over the luxury tax threshold, the more your team will pay, too.

- Teams under the tax threshold not only avoid penalty, but get rebates, which do not change their salary cap picture but which do improve the cash position.

- In addition to the luxury tax - whose effectiveness as a payroll deterrent had dwindled in light of the Golden State Warriors' extravagant spending - the NBA has recently introduced the "apron" thresholds, which exist in addition to the tax, and which are designed to reduce excessive spending not just through extra payments but through reduced spending options. See the Aprons page for more.