Boston Celtics Now ‘Exploring’ Signing A Star Player’s Contract Extension – Report
Not every player who has an expiration date will be available for trade when NBA free agency opens in July.
Before June 30th, some players will re-sign with their present teams, or if they have an option, they will choose to play one more season.
The day after the NBA Finals end is when clubs are officially permitted to negotiate new contracts with prospective free agents, but in reality, the rules are usually disregarded. Although prohibited, early talks are customary; nonetheless, the league will take appropriate action if information is discovered to have leaked or if the NBA discovers a paper or digital trail.
Since most of the available money is gone by July 1 or 2, it is in the best interest of a player’s agent to gain a strong grasp of the market well in advance of the legal start of discussions, which is technically June 30. Therefore, an agent evaluating the worth of their client might conclude that it would be beneficial to maintain their player on the same squad.
Why wait if that’s the case? It is preferable for a player to lock in guaranteed money as soon as possible.
However, not every player qualifies for an extension. Extensions are only possible for contracts that are at least three years long (usually after the second anniversary; third year for longer expiration contracts). Players like D’Angelo Russell of the Los Angeles Lakers, James Harden of the LA Clippers, Tyus Jones of the Washington Wizards, and Nicolas Claxton of the Brooklyn Nets are not included in this.
Before July, extensions may begin at a base of $16.7 million, which is equal to 140% of the projected average player salary, or, if that amount is greater, 140% of the player’s previous salary. Additionally, they can only last for a total of five years, which includes any previous seasons (such as the campaign that ends in 2023–24).
Furthermore, a player’s extension may only add two more years and their 140 percent ascent may only reach 105 percent if they were traded within six months of the June 30 deadline. Some players who might wish to extend in June are not helped by the rule, which jumps to three years and 120 percent in July.
In August 2022, LeBron James signed a three-year contract that included the 2022–2023 season, after having previously extended for two more years. If he opts out, he is not eligible for an extension; but, if he completes his last year, he may apply again in August.
James’ eight percent pay increase from this year to next year exceeds the NBA’s projected salary cap of $141 million by a greater margin than the 3.7 percent expected by the league. A typical veteran with ten years or more of experience can expect to make a maximum of $49.4 million; however, if their offer surpasses the maximum, they can re-sign for a five percent boost.
James can choose to opt out and resign for slightly under $50 million, or he can opt in for $51.4 million. The $1.4 million difference implies that he chooses to opt in and then extends for 2025–2026 at maximum salary; however, James is only allowed to add two more seasons due to the Over-38 Rule.
James might end up preferring free agency as a result of that. Even if he struggles in the first season, he might sign a three-year contract worth roughly $162 million. James will undoubtedly make that decision, providing the Lakers are willing to go with whatever he decides.
