What the NBA’s Supermax Contract Extension Means for Players

Eligible players can now sign contract extensions worth up to 35% of the salary cap a huge raise from the old 10.5% max. We break down what this means for the league’s best players.

What is a max contract extension?

In the NBA, a supermax contract extension is a designated player extension that can be worth up to 35% of a team’s salary cap The supermax was created in the 2017 Collective Bargaining Agreement as a way to help keep star players with their teams.

To be eligible for a supermax extension, a player must have been named to the All-NBA team in the prior season, or in two of the prior three seasons. They must also have played out their current contract.

If a player meets these criteria, they are eligible for a five-year extension worth up to 35% of the salary cap That’s a significant raise from the standard maximum contract extension, which is worth 30% of the salary cap

So far, only two players have signed supermax extensions: Russell Westbrook of the Oklahoma City Thunder and Steph Curry of the Golden State Warriors Both were eligible due to their multiple All-NBA Selections

While the supermax is designed to keep superstars with their teams, it’s worth noting that it doesn’t necessarily mean that players will always stay put. In fact, both Westbrook and Curry could still become free agents in 2021 if they chose to opt out of their contracts after three years.

The supermax is just one tool that teams can use to try to keep their best players around. It’ll be interesting to see how many more players sign supermax extensions in the coming years.

How do supermax contract extensions work?

A supermax contract extension is a tool that NBA teams can use to keep their superstar players from leaving in Free agency The supermax contract was created as part of the 2017 Collective Bargaining Agreement between the NBA and the National basketball players Association. Under the supermax, teams can offer their star players larger contracts than they could under the previous collective bargaining agreement.

In order to be eligible for a supermax contract extension, a player must meet certain criteria. First, the player must have been named to the All-NBA team in any of the three previous seasons, or to two of the three All-NBA Teams in any previous season and one of the two All-Defensive Teams in any previous season. Second, the player must have spent at least three seasons with his current team.

If a player meets both of these criteria, he is eligible for a five-year contract extension worth 35 percent of the salary cap This is a significant increase from the maximum contract extensions that were available under the previous collective bargaining agreement, which were worth 30 percent of the salary cap

The supermax contract extension has already had an impact on the NBA landscape. In 2017, Russell Westbrook signed a five-year, $205 million supermax extension with the Oklahoma City Thunder In 2018, Stephen Curry signed a five-year, $201 million supermax extension with the Golden State Warriors And in 2019, Damian Lillard signed a four-year, $196 million supermax extension with the Portland Trail Blazers

The impact of the supermax contract extension will only continue to grow in the years to come as more and more superstar players become eligible for this lucrative extension.

What are the benefits of a supermax contract extension?

The NBA’s supermax contract extension is a new type of contract extension that allows players who have played at least six seasons with their current team to sign a five-year extension worth up to 35% of the team’s salary cap

The supermax contract extension is different from the regular maximum contract extension in a few key ways. First, the supermax contract extension can be worth up to $220 million, whereas the regular maximum contract extension is capped at $180 million. Second, the supermax contract extension can only be signed by players who have been named to an All-NBA team in the past two seasons or who have won an MVP Award whereas any player who has been in the league for at least three years is eligible to sign a regular maximum contract extension.

The benefits of a supermax contract extension are clear: players who are eligible for the supermax can sign significantly larger contracts than they otherwise would be able to, and they can do so with the peace of mind of knowing that they will remain with their current team for at least five more years.

There are some drawbacks to the supermax contract extension, however. First and foremost, it creates a dangerous precedent of franchises trading away young players who have not yet reached their full potential in order to clear salary cap space to sign another player to a supermax deal. This could have a chilling effect on player movement around the league and make it harder for young players to break through on bad teams. Additionally, the supermax could lead to increased tension between players and front offices, as playerswho feel they are underpaid relative to their peers may demand trades to teams that can offer them a richer payday.

Only time will tell how the supermax contract extension will impact the NBA landscape, but one thing is certain: it will have major implications for both players and teams going forward.

What are the drawbacks of a supermax contract extension?

The supermax contract extension is a new provision in the NBA’s collective bargaining agreement that allows certain highly accomplished players to sign unprecedentedly large contract extensions with their current teams. While these contracts can be extremely lucrative for the players who receive them, there are also some potential drawbacks that should be considered before signing one.

One of the biggest drawbacks of a supermax contract extension is the possibility of becoming locked into a long-term deal with a team that is not championship-caliber. Because max contracts cannot be signed until a player has completed eight years of service with his current team, there is a risk that a player could end up spending the prime years of his career on a team that is not contention for an NBA title In addition, because supermax contracts can only be signed once in a player’s career, there is also the risk of being stuck on a single team for an extended period of time, even if that team is not meeting your expectations.

Another potential drawback of signing a supermax contract extension is the effect it could have on your future earnings potential. While the salaries under these contracts are certainly high, they are also fully guaranteed. This means that if you were to suffer an injury or otherwise have your career cut short, you would still be paid the full amount of your contract. For some players, this security may be worth sacrificing some future earnings potential, but others may prefer to bet on themselves by signing shorter or less lucrative deals.

Finally, it is worth considering the public perception of players who sign supermax contract extensions. Because these deals are so large and can only be signed once in a player’s career, they are often criticized as being “bad deals” for the teams that sign them. This criticism can sometimes lead to negative publicity for the player and tarnish their reputation, even if they perform well on the court.

Overall, signing a supermax contract extension can be a great opportunity for certain players to secure their financial future. However, it is important to weigh all of the potential drawbacks before making any decisions about these contracts.

How does a supermax contract extension compare to a normal contract extension?

The NBA’s new collective bargaining agreement includes a provision for a “supermax” contract extension, which allows qualifying players to earn up to 35% of their team’s salary cap This is a significant increase from the maximum 30% that other players can earn.

So, how does a supermax contract extension compare to a normal contract extension? For one thing, the supermax is only available to players who have been with their current team for at least three years and who have also been named to an All-NBA Team in the past two years. In other words, it’s reserved for the league’s very best players.

Another key difference is the salary cap while a normal contract extension can push a team over the salary cap a supermax extension cannot. This means that teams will need to carefully consider how a supermax will affect their overall payroll and luxury tax bill.

Finally, it’s worth noting that not all players are eligible for a supermax extension. In order to receive one, a player must first sign an extension with their current team; they cannot simply enter free agency and then sign a supermax deal elsewhere. For all these reasons, the supermax is sure to be one of the most talked-about topics in the NBA this offseason.

Who is eligible for a supermax contract extension?

In order to be eligible for a supermax contract extension, a player must:
-Be under contract with his current team for the upcoming season
-Be entering the final year of his existing deal
-Have been named to an All-NBA team won Defensive Player of the Year, or been named MVP in any of the three previous seasons OR in the season prior to signing the supermax extension (the “qualifying year”)

For example, Anthony Davis of the New Orleans Pelicans would have been eligible for a supermax extension this summer had he not been traded to the Los Angeles Lakers. He met the first two criteria (being under contract with his current team and entering the final year of his deal), but did not meet the third criterion (he was not named to an All-NBA team won Defensive Player of the Year, or been named MVP in any of the three previous seasons).

How do teams decide whether or not to offer a supermax contract extension?

Under the NBA’s current collective bargaining agreement, teams are able to offer certain players who meet certain criteria a “supermax” extension. This extension is worth up to 35% of a team’s salary cap and can be worth up to $240 million over five years.

Players who are eligible for a supermax extension are those who have been selected to an All-NBA Team in the prior season, or have been named MVP in any of the three seasons prior. As of right now, there are 21 players who would be eligible for a supermax extension if they were to become free agents this offseason.

The decision of whether or not to offer a player a supermax extension is one that each team must make on their own. There are several factors that teams must take into account when making this decision, such as the player’s age, injury history, and how well they fit into the team’s long-term plans.

Offering a player a supermax extension is a risky proposition for any team. If the player gets injured or their performance begins to decline, the team will be stuck with an undesirable contract that hamstrings their salary cap flexibility for years to come. For this reason, it is often only teams who are confident in their ability to compete for championships who offer supermax extensions.

Do you think your favorite team should offer a player a supermax extension?

What are the implications of a supermax contract extension?

In the summer of 2017, the NBA changed the rules regarding contract extensions for players who had been with their current team for at least three years and had not yet reached free agency Prior to this change, the so-called “supermax” extension was only available to players who had been named MVP or defensive player of the Year in the previous season. Now, any player who meets the above criteria is eligible for a supermax extension.

The implications of this change are significant. First, it gives players more power in relation to their teams. If a player is unhappy with his current situation, he can now demand a trade to a team that is willing to give him a supermax extension. Second, it creates a greater incentive for players to stay with their current teams, as they are now more likely to be rewarded with a larger contract. Finally, it ensures that the best players in the league will receive top dollar, which will only further increase the gap between the haves and have-nots in the NBA.

What are some of the notable supermax contract extensions in NBA history?

In 2017, the NBA created a new rule allowing teams to offer their star players “supermax” contract extensions. These extensions are worth up to 35% of a team’s salary cap, and they can be worth up to $250 million over five years.

So far, there have been four notable supermax contract extensions in NBA history In 2017, Russell Westbrook signed a five-year, $205 million extension with the Oklahoma City Thunder In 2018, Steph Curry signed a five-year, $201 million extension with the Golden State Warriors In 2019, James Harden signed a four-year, $170 million extension with the Houston Rockets And in 2020, Anthony Davis signed a five-year, $190 million extension with the Los Angeles Lakers

These contracts have had a major impact on the NBA landscape. They’ve helped teams keep their superstar players, and they’ve given those players a lot of financial security. However, they’ve also put pressure on other teams to sign their own star players to supermax deals. And that pressure has led to some big contracts being handed out in recent years

What does the future hold for supermax contract extensions in the NBA?

The NBA’s supermax contract extension is a new tool that teams can use to keep their star players in town. It’s a five-year extension that can be worth up to 35% of a team’s salary cap, and it can only be offered to players who have been with their team for at least three years and who have been named to an All-NBA team in the previous season.

So far, only two players have been eligible for the supermax: Russell Westbrook of the Oklahoma City Thunder and James Harden of the Houston Rockets Both players signed extensions worth $205 million.

The supermax has been criticized by some who say it gives too much power to agents and puts pressure on small-market teams to spend big money just to keep their stars. But others say it’s a necessary evil in today’s NBA, where star players have all the leverage.

Only time will tell how big of an impact the supermax will have on the NBA landscape. But one thing is clear: It’s here to stay.