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Does the Designated Player option only apply to extensions? Or does it also apply to RFA's.

Example: The Pistons sign Monroe to a 5 year deal. Does that eat up their DP option? Or because he is a free agent and his contract not an extension, would that option still be available for Drummond?

Yes, it does only apply to extensions. You can sign any FA whom you have the Bird Rights to, to a 5 year deal.

I'm pretty sure it applies to any player coming off of his 1st round pick rookie contract. It doesn't matter whether or not they sign an extension after their 3rd year or a new contract as an RFA after their 4th year.

Older FA's can be re-signed for 5 year contracts without any issues.

giberish wrote:I'm pretty sure it applies to any player coming off of his 1st round pick rookie contract. It doesn't matter whether or not they sign an extension after their 3rd year or a new contract as an RFA after their 4th year.

Older FA's can be re-signed for 5 year contracts without any issues.

Pretty sure that's wrong. What allows teams to sign older FAs to 5 year deals is having the Bird Rights. They have Bird Rights to players coming off their rookie deals after their 4th year as well, so why wouldn't they be able to give them their 5th year via Bird Rights?

See http://www.cbafaq.com/salarycap.htm#Q54:

Larry Bird is max 5 years. As far as extensions: 4 for veterans, 5 for rookie scales, or 6 for Designated Players, where remaining seasons of the current contract are included.

See also http://www.cbafaq.com/salarycap.htm#Q59:

Rookie scale contracts may be extended for up to four seasons beyond the last option season in the contract, bringing the total contract length to five seasons. Teams can also select one player (called their "Designated Player") who can receive a five-year extension, bringing the total contract length to six seasons. A team can have at most one player on its roster whom they have designated for a longer extension