Contract Basics
A legal agreement that explains how much a professional basketball player is paid and for how long
A contract
Most NBA contracts are this meaning players still get paid if they cannot play
Guaranteed
A player who earns a high salary despite low performance
Overpaid player
NBA salaries range from minimum deals to these highest level contracts
Max contracts
A contract option that allows a player to choose whether to stay with a team
Player option
The length of time a player is signed to a team
Contract term
A league rule that limits how much money teams can spend on player salaries
Salary cap
Teams sometimes pay more money based on this instead of current performance
Reputation or past success
Players who usually earn much less than star players
Bench players
A contract clause that prevents teams from trading a player without permission
No trade clause
Extra money players can earn for meeting goals like games played or awards
Bonuses
Three ways NBA contracts can differ including pay structure and length
Salary length and bonuses
A factor that can quickly lower a player’s value
Injuries
This group often earns more money than players overall
Team owners
What star players may request if they are unhappy with their situation
Trade request
A type of NBA contract where players are paid even if they are injured
Guaranteed contract
The two groups that negotiate NBA contract terms besides the player
Team management and agents
A player who performs well but earns less than their value
Underpaid player
Salary caps are designed to create this among teams
Fairness
Financial security allows players to do this regarding social issues
Speaking out
The professionals who negotiate contracts on behalf of NBA players
Agents
A major risk teams consider before offering large contracts
Injuries
Comparing salary to performance is one way to judge this contract issue
Player value
Even with a salary cap this problem still exists in the NBA
Income inequality
One way NBA contracts influence society beyond basketball
Cultural and community impact