Do max contracts adjust with cap increases?

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Danimals
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Do max contracts adjust with cap increases? 

Post#1 » by Danimals » Thu Jun 30, 2022 3:45 am

If a player is on a max or super max contract when a new TV deal kicks in, does their annual salary increase to remain at the same percentage of the cap? Or is the percentage used just for the first year of the deal?
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Re: Do max contracts adjust with cap increases? 

Post#2 » by DBoys » Thu Jun 30, 2022 7:52 am

Danimals wrote:If a player is on a max or super max contract when a new TV deal kicks in, does their annual salary increase to remain at the same percentage of the cap? Or is the percentage used just for the first year of the deal?


Changes in cap in future years - up or down - don't have any effect on a contract's 2nd 3rd 4th 5th year. It is whatever is written or determined as it begins.

However, if a contract or extension is written and signed for the "max" or "max allowable amount" before that amount is known (for example, the Doncic extension signed in 2021 that begins in July 2022), then he will receive 30% of whatever the max is ultimately set at, in 2022-23 season.

But his future years will be the 1st year amount plus 8% annual raises based on that 1st year, no more and no less.
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Re: Do max contracts adjust with cap increases? 

Post#3 » by Colbinii » Wed Jul 6, 2022 10:20 pm

Danimals wrote:If a player is on a max or super max contract when a new TV deal kicks in, does their annual salary increase to remain at the same percentage of the cap? Or is the percentage used just for the first year of the deal?


Annual Raises are set as a % of the previous annual salary unrelated to the cap.
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Re: Do max contracts adjust with cap increases? 

Post#4 » by DBoys » Tue May 23, 2023 3:00 am

Colbinii wrote:
Danimals wrote:If a player is on a max or super max contract when a new TV deal kicks in, does their annual salary increase to remain at the same percentage of the cap? Or is the percentage used just for the first year of the deal?


Annual Raises are set as a % of the previous annual salary unrelated to the cap.


In a max deal with max raises, the "max" raise amount (it's either 5% or 8% of 1st year salary) is limited by the CBA. Each year's raise in a max deal would be based on the 1st year salary of the contract, not on the previous year (except for year 2, of course), and in a max deal, each raise would be the same dollar increase from the prior year.

As you note, once the deal is signed, the change in the cap from one year to the next during the deal has no impact on the pay each year. The contract when signed will designate the pay each year, and the player gets whatever he signed for, each year. (That's true of non-max deals too.)

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