Max Contracts - How they work

aussie_laker · Post #1 » by **aussie_laker** » Thu Jul 8, 2010 1:27 am

Hey Guys,

Can someone please explain to me how max contracts work? Wikipedia has some information on it. For example the max for 10+ vet is 35% of the Cap. Yet Kobe is on $24,000,000 according to Hoops Hype.

slifersd · Post #2 » by **slifersd** » Thu Jul 8, 2010 3:38 am

I believe it should be 35% of the cap, but the cap number is different from year to year. I think when Kobe signed his current contract, he wasn't a 10 year veteran at that point and the cap number was lower than it is now. That's why the 24 million he is making might look odd.

Gek · Post #3 » by **Gek** » Thu Jul 8, 2010 3:48 am

Depends on the number of years in the NBA.

It is based off the cap which is based off the BRI (basketball related income which includes tickets, tv, summer camps, certain % from stadium ads and what not... etc) For 2010/2011 the cap is 51% of the BRI. This is set by the CBA.

**Side Note, the Luxury cap is 61% of the BRI

0-6 Years is 9 million or 25% of the cap
7-9 Years is 11 million or 30% of the cap
10+ Years is 14 million or 35% of the cap

(Whichever is greater)

A free agent's max salary for his first year can't be less than 105% of his previous year's salary. Also teams that have Bird Rights - which is essentially resigning a player you've had on your team - may give maximum raises each year of 10.5%, otherwise you are limited to 8%. Players signed for the minimum must take that same salary if they decide to stay for the max of 2 seasons.

I hope that helps.

aussie_laker · Post #4 » by **aussie_laker** » Thu Jul 8, 2010 4:08 am

Kobe's current contract is close to 40% of the cap for next season.
Is this because of the 105% rule?

Gek · Post #5 » by **Gek** » Thu Jul 8, 2010 4:17 am

aussie_laker wrote:Kobe's current contract is close to 40% of the cap for next season.
Is this because of the 105% rule?

Most likely... when did his new contract start and what was his salary last year?

It may also have to do with the fact that I think he took that player option for this season if I am not mistaken... If so then it is probably an 8-10.5% raise over the previous season at most.