Latest On How New CBA Will Affect Trades, Extensions

Details on the league’s new Collective Bargaining Agreement continue to trickle out, and Eric Pincus of Basketball Insiders passes along a particularly interesting nugget this morning. According to Pincus, the term sheet for the new CBA suggests that a player who signs a deal under the new agreement will only have the guaranteed portion of his contract used for salary-matching purposes in a trade.

As an example, Pincus points to Arron Afflalo, whose $12.5MM salary in 2017/18 is only guaranteed for $1.5MM. Afflalo won’t be directly affected by this change, since his contract was signed under the previous CBA, but going forward, it will impact players who sign similar deals. Based on the new CBA rules, that salary would count for just $1.5MM in a trade, rather than $12.5MM. The change should help deter teams from acquiring players on non-guaranteed salaries and then immediately waiving them to cut costs.

Pincus also shares several more details on the new CBA, so we’ve rounded up some of the highlights below. As usual, these details are part of the tentative agreement, but that agreement has yet to be formally ratified, so it’s subject to change. Be sure to check out Pincus’ full article for more info.

Contract extensions:

  • Under the previous CBA, a veteran became extension-eligible if at least three years had passed since he signed a contract of four years or more. The new CBA will allow players to sign veteran extensions two years after they signed their previous deal, and three-year contracts will be eligible to be extended.
  • Designated player extensions can only be signed during the offseason, beginning on July 1, similar to rookie scale extensions. The salary in the first year of a designated player extension will be between 30-35% of the cap, and there will be language in the deal to potentially grandfather in players who signed extensions this past offseason, such as Giannis Antetokounmpo.
  • The criteria for the designated player extension for players coming off rookie contracts will be the same as for the veteran designated player extension. Those criteria relate to All-NBA, MVP, or Defensive Player of the Year awards, with All-Star starts no longer included.
  • The deadline for rookie scale extensions will be moved up to one day before the regular season begins. Previously, the deadline was October 31.

Suspensions:

  • A player who is suspended without pay will now be docked 1/145th of his salary per day, rather than 1/110th. However, suspensions of 20+ games will still result in a player losing 1/110th of his salary per day.
  • A player who tests positive for a steroid or performance-enhancing drug will be suspended 25 games if he’s a first-time offender, and 55 games if he’s a second-time offender.

Salary cap:

  • The NBA will determine the salary cap for a given league year before the July moratorium gets underway, rather than calculating it during the moratorium.
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