How did LeBron James finally become the highest paid player in the NBA in 2016-2017? In renegotiating his contract with the Cavaliers, LeBron sought a well-deserved max contract. Max contracts fall into three categories. If a player has been in the league for:
In actuality, a different number is used to calculate MAX, thus CAP is based on 42.14% of Basketball Related Income as opposed to 44.74% of Basketball Related Income, which is the basis for the CAP in the 2011 CBA.
Thus, LeBron James, who was drafted in 2003, was eligible in the summer of 2016 for a 10+ year max contract. Because the salary cap jumped from $70,000,000 in 2015-2016 to $94,143,000 in 2016-2017, max contracts increased in value.
Furthermore, LeBron signed a contract for three years, theoretically at 35% of the CAP each year (with a player option after the second year). The player option means that if more money is available to LeBron before the 2018-2019 season than has been promised to him in his contract from Summer 2016, he may opt out of the current contract and try to renegotiate for more money.
To see how this works in numbers:
Finally, when LeBron James signs a three year, $100,000,000 contract, this is how it breaks down and this is exactly how he became the highest paid player in the NBA in the summer of 2016.
As of January 5, 2017, NBA teams are allowed to sign players to 10-Day contracts. This date is significant because teams have reached a midway point, so to speak, in that many teams are floating the idea of adding new pieces to spice up lineups or instill competition in practice, or release pieces that aren’t working. Essentially, the 10-Day contract is the most unique contract in all of professional sports and many NBA teams revel over this date each year.
The basics of a 10-Day Contract are this:
Who wins in this deal – PLAYER or TEAM?
Quite frankly, both. Most often, 10-Day contracts are given to guys called up from the NBA Developmental League. For those unaware, the D-League offers two levels of salary: B-Level @ $19,500 and A-Level @ $26,000. Granted, this does not include bonuses or endorsements, but the amount they make in the D-League is incomparable to any NBA Salary. While the details of 10-Day Contracts are not released, they can be calculated with a simple formula: .17 * PLAYER MINIMUM SALARY FOR THE YEAR. This is pro-rated based on the number of years a player has been in the league, but it works out to be about $50,000 for any given 10-Day Contract.
To a player, this is double what he would earn playing a year in the D-League. Truly, he may never set foot on an NBA court in those ten days, but he walks away with $50,000 and retains his contract with the D-League. If the player does not succeed in those ten days, his contract expires and he returns to the D-League. If the player does succeed, the team can resign him to a second consecutive 10-Day contract. After the second 10-Day contract, the team must either sign the player for the rest of the season or release him.
To the team, they get to try out as many players as they want so long as they have an open roster spot. The monetary value of the contracts is insignificant when the minimum salary for a full-year NBA player ranges from $543,471 to $1,551,569 in 2016-2017.
January 27, 2017
The Dallas Mavericks chose to waive PG Pierre Jackson and sign former Indiana Hoosier Yogi Ferrell to a 10-day contract. Ferrell will until February 6, before the matchup against the Nuggets to try to earn a second 10-Day Contract. That time includes matchups versus the Spurs, Cavaliers, 76ers, and Trail Blazers. In the event that Ferrell does receive a second contract, a spot will once again open up and the Mavericks are free to sign others to a 10-Day contract, namely resigning Pierre Jackson after his injury.
I'm Jake, a recent graduate of Duke University pursuing a career in collegiate or professional basketball operations.
Cap #s 2018 - 2019
Salary Cap: $101.869M
Lux. Tax: $123.733M
Tax Apron: $129.827M
Tax Floor: $91.682M
Room MLE: $4.45M