It is widely reported that AD's $186M extension starts w/ 35% of 25-26 cap.
My question is - why is AD's first year extension salary not limited to 120% of his 24-25 salary.
It is not like he is a designated vet either given he only got traded to the Lakers a couple of seasons ago.
AD Extension
Re: AD Extension
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DBoys
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Re: AD Extension
Apparently AD has agreed to a "max" extension for 3 years. In theory, it can end up being 186M, so that's how it's being reported. But it almost certainly will not be that large, but not for the reason you raise.
There are 2 numbers, and AD's max will be the smaller of the 2.
1 Using his prior salary of ~$43.22M, his extension could start at 140% of that number, or ~$60.5M. Over 3 years with max raises, that would be ~$196M. 2023 CBA changed the limit to 140% of prior salary,
2 But the number is further limited by AD's max salary (35% of the cap in that initial year). The most the cap can jump is 10% in a year so the most it can be when his extension begins (136.1 x 1.1 x 1.1) would be ~$164.59M (setting a 35% max salary of $57.6M and a total 3-year payout with max raises of $186M). But the league projections are way below a 10% cap raise next summer. If we use those, plus 10% the ensuing year, we get ~$54.67M in year 1, and a total payout at ~$177.1M.
There are 2 numbers, and AD's max will be the smaller of the 2.
1 Using his prior salary of ~$43.22M, his extension could start at 140% of that number, or ~$60.5M. Over 3 years with max raises, that would be ~$196M. 2023 CBA changed the limit to 140% of prior salary,
2 But the number is further limited by AD's max salary (35% of the cap in that initial year). The most the cap can jump is 10% in a year so the most it can be when his extension begins (136.1 x 1.1 x 1.1) would be ~$164.59M (setting a 35% max salary of $57.6M and a total 3-year payout with max raises of $186M). But the league projections are way below a 10% cap raise next summer. If we use those, plus 10% the ensuing year, we get ~$54.67M in year 1, and a total payout at ~$177.1M.