How Much Do NBA Draft Picks Get Paid?

The NBA Draft is one of the most important events for young basketball players looking to make it to the big leagues. But how much do NBA draft picks get paid? We break it down for you.

NBA Draft Picks Get Paid Based on Their Draft Position

NBA draft picks receive a set amount of money based on their draft position. For example, the first overall pick in the draft will receive a higher salary than the second overall pick. The rookie salary scale is set by the NBA and is based on the NBA’s revenue.

First-round draft picks

In recent years, NBA first-round draft picks have signed contracts worth an average of about $9 million over their first four seasons. That is a significant raise from the prior collective bargaining agreement (CBA), which limited rookie contracts to a maximum of $5.6 million over two seasons.

Under the current CBA, which was signed in 2017 and runs through 2023, rookies’ salaries are determined by where they are selected in the draft. The first pick in the draft signs a four-year contract worth $22.7 million, with a team option for a fifth year. The salary for each subsequent pick decreases by $1 million per spot. For instance, the second overall pick signs a four-year contract worth $19.9 million, while the 10th pick signs a four-year contract worth $13.8 million.

First-round draft picks also receive annual raises of 4.5%, and their salaries count against their team’s salary cap. In contrast, second-round draft picks do not have their salaries guaranteed and they do not count against the salary cap. As a result, second-round picks typically sign much cheaper contracts than first-rounders.

One notable exception to this rule is Luka Doncic, who was selected with the third overall pick in 2018 but signed a three-year, $22.9 million contract with the Mavericks that gave him more money up front than what he would have made under the standard rookie scale. Doncic’s agent negotiated this “pre Rookie Scale Extension” in order to reach an agreement with Mavericks owner Mark Cuban on a long-term deal that would kick in once Doncic became eligible for amax extension after his third season.

Second-round draft picks

Second-round draft picks receive significantly smaller contracts than first-round picks. Secondly, their contracts are not fully guaranteed, meaning that the team can release the player at any time without having to pay the remainder of the contract. The exception to this is if the player is “cut” during their rookie season; in this case, they would only receive 30% of their remaining salary.

The typical second-round pick will make around $1 million over two years, with a team option for a third year at a lower salary. However, there have been some second-round picks that have received large contracts in recent years; for example, Jamal Murray signed a four-year, $42 million contract with the Denver Nuggets after being selected in the 2016 NBA Draft.

Third-round draft picks

Players drafted in the third round of the NBA draft typically don’t make as much money as first- or second-round picks. In fact, most third-rounders sign two-way contracts, which means they spend most of their time in the G League (formerly the NBA Development League) and can only be on an NBA team’s active roster for up to 45 days.

But there are exceptions. In 2017, for example, the Boston Celtics signed third-round pick Semi Ojeleye to a four-year, $4 million deal.

The following is a list of recent third-round NBA draft picks and their contracts:

2017 NBA Draft
Anzejs Pasecniks: 2 years, $2.04 million (team option for 2019-20)
Vlatko Cancar: 4 years, $5.56 million (rookie scale)
Semi Ojeleye: 4 years, $4 million
Kadeem Allen: 2 years, $1.38 million (team option for 2019-20)
Dillon Brooks: 4 years, $3.11 million (rookie scale)

NBA Draft Picks Also Receive a Signing Bonus

NBA draft picks receive a signing bonus in addition to their rookie-scale contract. The signing bonus is given to the player in order to induce him to sign with the team that drafted him. The signing bonus is paid out over the first two years of the contract and is pro-rated for luxury tax purposes. The signing bonus cannot be less than 80% of the player’s rookie-scale contract.

Signing bonus amount

The signing bonus is the amount of money that a player receives when they sign their first professional contract. For NBA draft picks, the signing bonus is typically two-thirds of the rookie scale salary for that particular pick. In other words, if a player is drafted in the first round and they sign a three-year contract, they will receive two-thirds of the rookie scale salary for each of those three years as their signing bonus.

When the signing bonus is paid

The NBA’s collective bargaining agreement stipulates that draft bonuses must be paid within 60 days of the start of the league’s first season following the draft. For rookies selected in 2019, that means their bonuses are due on November 29, 2019.

If a player is traded before the end of his rookie contract, he is still owed any unpaid portion of his signing bonus by his original team. For example, if a player is drafted in 2019 and traded in 2021, his former team would still be responsible for paying him the remaining portion of his signing bonus.

NBA Draft Picks’ Salaries Are Not Fully Guaranteed

NBA draft picks’ salaries are not fully guaranteed, meaning that a team can release a player before the end of their contract and not be on the hook for the entire amount of money. This can be a good thing or a bad thing, depending on how you look at it. On one hand, it gives teams the ability to get out of bad contracts. On the other hand, it can make it hard for players to get paid what they deserve.

Base salary

The base salary for NBA rookies selected in the first round of the draft is set by the collective bargaining agreement between the league and its players. For example, the first pick in the 2020 NBA Draft will earn a base salary of $8.85 million in their first year, while the 30th pick will earn $2.93 million.

In addition to their base salary, all first-round picks receive a housing allowance and an annual stipend for meals and other expenses, which totaled $19,000 in 2019. They also receive an annual “rookie scale” increase based on their draft position and years of experience in the league, up to a maximum of 30% of their base salary after year three.

If a first-round pick is not signed by their team within 30 days of the draft, they automatically become a free agent and are free to sign with any team. Second-round picks do not have guaranteed contracts and often have to compete for a spot on an NBA roster during training camp.

Incentives

Incentives are often included in NBA draft picks’ contracts in order to reward them for meeting certain statistical benchmarks or other conditions. For example, a player drafted in the first round may have their salary increased by $500,000 if they are named to an All-NBA team. Incentives can also be used to lower a player’s salary if they do not meet the required benchmarks. For example, a player drafted in the first round may have their salary reduced by $500,000 if they are not named to an All-NBA team.

There is also a great deal of risk associated with drafting players because their contracts are not fully guaranteed. This means that if a player does not pan out or gets injured, the team can release them without having to pay any further money. This can lead to teams being very cautious with who they draft and often leads to players falling in the draft order even though they may be talented.

NBA Draft Picks’ Salaries Increase Each Year

The NBA has a rookie wage scale that limits how much first-year players can make. The scale is based on the NBA’s salary cap, which is set each year by the league. The salary for the first overall pick in the NBA draft is about $8.4 million. The salary for the last pick in the first round is about $1.4 million.

Rookie “scale”

The NBA’s rookie “scale” is a set of rules that dictate how much first-year players get paid. The scale is based on the NBA’s collective bargaining agreement (CBA) with the National Basketball Players Association (NBPA). It was created to ensure that rookies are compensated fairly, while also giving teams some cost certainty with regards to their rookie contracts.

Under the rookie scale, each draft pick is assigned a salary based on where they were selected in the draft. The first overall pick will earn the most money, while the last pick in the first round will earn the least. The salaries for each pick are predetermined and increase incrementally each year of the contract.

For example, the first overall pick in the 2020 NBA Draft will earn a base salary of $8.1 million in their first year. That salary will increase to $9.3 million in their second year, $10.5 million in their third year, and so on until they reach their fifth and final year of their contract, when they will earn $17.8 million.

picks from later in the draft will have lower base salaries, but they will still see their salaries increase incrementally each season. The 30th overall pick in the 2020 NBA Draft will earn a base salary of $2.9 million in their first year, which will increase to $3.4 million in their second year, $3.9 million in their third year, and so on until they reach their fifth and final year of their contract, when they will earn $6.0 million

Maximum salaries

The maximum salaries in the NBA depend on a player’s years of experience in the league. Players can sign for up to 30% of the salary cap if they have 8-9 years of experience, 35% of the salary cap if they have 10-11 years of experience, or up to 40% of the salary cap if they have 12 or more years of experience.

The following table shows the maximum salaries a player can earn in each season, based on their years of experience.

| Years of Experience | Max Salary |
| — | — |
| 0-3 | $5,amara723,6930826 |
| 4-5 | $14,269,000 |
| 6-7 | $17,149,000 |
| 8-9 | $19,595,000 |
| 10-11 | $22,117,000 |
| 12+ | $24,242,380