How Much Do NBA Players Make?
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We all know that NBA players are some of the highest-paid athletes in the world. But just how much do they make? Here’s a look at the average salaries for NBA players.
NBA Players’ Salaries
NBA players are some of the highest-paid athletes in the world. The average salary for an NBA player is $7.7 million dollars. However, there is a wide range of salaries for NBA players. The minimum salary for an NBA player is $482,000 dollars, while the maximum salary is $35.65 million dollars. NBA players’ salaries are based on a few factors, including their experience, their performance, and the team they play for.
The NBA’s salary cap
The NBA’s salary cap is the maximum amount of money that a team can spend on player salaries in a given season. In 2020-21, the salary cap is $109.140 million, up from $105.695 million in 2019-20. The tax level for 2020-21 is $132.627 million, up from $129.817 million last season.
The salary cap is calculated using a formula that takes into account league revenues and other factors, such as the number of teams in the league. The cap goes up or down each year as the league’s revenues change.
The salary cap doesn’t apply to all players’ salaries, though. Players who have been in the NBA for at least 10 years can sign contracts for up to 35% of their team’s salary cap, while players with less than 10 years of experience can sign contracts for up to 30% of their team’s salary cap.
There are also exceptions for certain types of contracts, such as those signed by rookies or two-way players.
The salary cap affects how much teams can pay their players and also has an impact on player movement around the league. Players who are signed to contracts that pay them more than the salary cap allows their teams to pay are said to be “over the cap.” Teams that are over the cap can only acquire players through trade or by signing free agents to contracts that pay them less than the maximum allowed by the salary cap rules.
Maximum and rookie salaries
The NBA has a soft salary cap, which means that there is a limit to the amount of money that a team can spend on player salaries, but there are exceptions that allow teams to go over the limit. The maximum salary for a player with 0-6 years of experience is $25.8 million, while the maximum salary for a player with 7-9 years of experience is $34.6 million. 10+ years of experience allows a maximum salary of $39.8 million. In addition to these amounts, players can also earn up to 30% of their team’s salary cap in bonuses, which gives them the opportunity to earn more money.
Rookies’ salaries are determined by the collective bargaining agreement between the NBA and its players. First round draft picks’ salaries are set by their draft position, with the first overall pick earning the most money and each subsequent pick earning slightly less. Second round draft picks’ salaries are much lower, with only the first pick in the second round earning more than $1 million per year. Players who are not drafted also have very low salaries, often only making the league minimum of $874,636.
Salary exceptions
The NBA has a salary cap that limits how much teams can spend on player salaries. However, there are a few exceptions that allow teams to exceed the salary cap:
-The Mid-Level Exception: This exception allows teams to sign one or more free agents for up to the mid-level salary exception amount, which is set at $5.7 million for the 2017-18 season. Teams can use this exception every year, but it cannot be used in consecutive years.
-The Bi-Annual Exception: This exception allows teams to sign one or more free agents for up to $2.1 million every other year. It cannot be used in consecutive years.
-The Rookie Exception: This exception allows teams to sign first-year players (rookies) for up to 120% of the rookie scale amount. The rookie scale amount is determined by where the player was drafted, with lower draft picks receiving less money and higher draft picks receiving more money.
NBA Players’ Endorsements
Endorsement deals
In addition to their salaries, many NBA players earn income from endorsement deals. For some players, endorsement earnings can exceed $10 million per year. The most popular players tend to generate the most income from endorsements, but there are many factors that can affect a player’s earnings potential, including their on-court performance, the size of their market, and their personal appeal.
The following list includes the 10 NBA players who earned the most from endorsements in the 2019-2020 season:
1. LeBron James – $48 million
2. Stephen Curry – $42 million
3. Kevin Durant – $36 million
4. James Harden – $34 million
5. Damian Lillard – $19 million
6. Russell Westbrook – $18 million
7. Kyrie Irving – $16 million
8. Anthony Davis – $15 million
9. Joel Embiid – $14 million
10. Klay Thompson – $13 million
The most popular endorsement deals
The most popular endorsement deals for NBA players are with companies like Nike, Adidas, and Reebok. These companies often provide shoes and other gear for the players to wear during games, as well as promotional opportunities and financial compensation. Other popular endorsement deals include those with sports drinks, like Gatorade, and with snack foods, like chips or candy.
Players can also make money by endorsing products that are not related to basketball. For example, LeBron James has an endorsement deal with Beats by Dre headphones, and Kevin Durant has an endorsement deal with Sprint. If a player is especially popular or influential, he can command a higher price for his endorsements. For example, Steph Curry is reportedly paid $12 million per year by Under Armour.
How NBA Players Spend Their Money
Investments
While some NBA players invest their money in traditional stocks and bonds, others prefer to put their money into more creative ventures. For example, Shaquille O’Neal owns a chain of car washes, a nightclub, several restaurants, and a basketball team. LeBron James has a stake in Beats Electronics and connects with his fans through the Uninterrupted media platform.
Other common investments among NBA players include real estate, private equity, and venture capital. For example, Kevin Durant owns several properties in Oklahoma City and New York City. Carmelo Anthony is an investor in BR Ventures, a New York City-based venture capitalist firm. And Dwyane Wade is a partner in Mosaic Media Investments, a Miami-based firm that invests in tech startups.
Luxury purchases
Some of the most popular luxury purchases among NBA players are homes, cars, jewelry, and clothes. Many players have also been known to spend lavishly on gifts for friends and family.
In terms of homes, NBA players often purchase multi-million dollar mansions. Some of the most expensive homes owned by NBA players include LeBron James’ $23 million California mansion and Shaquille O’Neal’s $28 million Florida estate.
As for cars, many NBA players opt for luxury brands such as Bentley, Rolls-Royce, and Lamborghini. Some players have even been known to purchase multiple supercars. For example, Kobe Bryant is reported to own a Ferrari F430 Spider, a Porsche 911 Turbo S, and a Lamborghini Aventador.
When it comes to jewelry, NBA players often go for designer pieces from brands like Cartier and Jacob & Co. In addition to regular watches and rings, some players have also been known to purchase diamond-encrusted grills and other over-the-top pieces.
Finally, NBA players are also known for their love of designer clothes. Many players have closets full of clothes from brands like Gucci, Louis Vuitton, and Dior. Some players even have their own clothing lines or collaborate with major fashion brands on special capsule collections.
Giving back to their communities
Many NBA players give back to their communities through their foundations or other charities. For example, Dikembe Mutombo’s Foundation provides health care and education to people in his native Congo. Steve Nash’s Foundation supports children’s health and education causes in both the U.S. and Canada. LeBron James’ Foundation helps at-risk kids in Akron, Ohio through a variety of programs, including a bike-a-thon and a leadership camp. Carmelo Anthony’s Melo7 Tech Partners invests in startups founded by people of color. These are just a few examples of the many ways that NBA players give back to the communities that have supported them.
