Max contract percentage

[Trueblood]

When the dust cleared in 1999, the NBA instituted max contracts and set them at 25% for players with 0-6 years of experience, 30% for 7-9 year vets and 35% for 10 plus vets.

In 2005, I just assumed that those numbers stayed the same. However, the cap was $58 million yet 7-9 year vets like Joe Johnson and Amare Stoudemire signed "max" deals for just 16.8 million. However, if you figure 30% of the $58 million cap number, you come up with what should be a max of $17.4 million.

Did those guys actually not sign for the max despite what was reported by the media or did the 30% number come down when they renegotiated the cba in 2005?

[answerthink]

The max salary for a 7-9 year veteran in the first season of a new contract is the greatest of: (i) 30% of the salary cap, (ii) 105% of his previous season salary, and (iii) $11 million. But an adjusted cap calculation is used to determine the max salaries, which is based on 48.04% of projected BRI.

Joe Johnson received a full, max contract. His salary, $16.3 million, is exactly 30% of the adjusted cap ($54.4 million).

Amare Stoudemire’s situation is a bit more convoluted. Since 105% of his previous season salary was greater than 30% of the adjusted cap, his max salary was $17.2 million. Signing a free agent contract with the Knicks, he was eligible for a 5-year deal starting at $17.2 million with 8% raises, or $99.7 million. Ultimately, the Knicks and Suns worked out a sign-and-trade whereby Stoudemire received the same $99.7 million over 5 years, but the Suns utilized his bird rights to give him the increased 10.5% raises, making his salary $16.5 million this season. The approach saved the Knicks $711k in cap space, and gave the Suns a $16.5 million trade exception and a conditional second round pick. But, technically, it was not a max contract.

[Trueblood]

The max salary for a 7-9 year veteran in the first season of a new contract is the greatest of: (i) 30% of the salary cap, (ii) 105% of his previous season salary, and (iii) $11 million. But an adjusted cap calculation is used to determine the max salaries, which is based on 48.04% of projected BRI.

Joe Johnson received a full, max contract. His salary, $16.3 million, is exactly 30% of the adjusted cap ($54.4 million).

Amare Stoudemire’s situation is a bit more convoluted. Since 105% of his previous season salary was greater than 30% of the adjusted cap, his max salary was $17.2 million. Signing a free agent contract with the Knicks, he was eligible for a 5-year deal starting at $17.2 million with 8% raises, or $99.7 million. Ultimately, the Knicks and Suns worked out a sign-and-trade whereby Stoudemire received the same $99.7 million over 5 years, but the Suns utilized his bird rights to give him the increased 10.5% raises, making his salary $16.5 million this season. The approach saved the Knicks $711k in cap space, and gave the Suns a $16.5 million trade exception and a conditional second round pick. But, technically, it was not a max contract.

Ok, thanks for the clarifications. Hoopshype has both Amare and Joe at 16.8 million so I assumed those numbers were right but I know that they get them wrong sometimes.

I wonder how the league comes up with projected BRI. You would think they would base it on hard, factual numbers as opposed to projected numbers but alas, the max salary system is a good one regardless.

[answerthink]

It may surprise you to learn that projected BRI is actually based on hard, factual data. It is equal to the sum of (i) all national broadcast, national telecast and cable television contract amounts applicable to that season and (ii) for all other components of BRI, the actual BRI from the season prior increased by 4.5%.

The projected BRI that was used to determine the 2010/11 salary cap was $3.791 billion.