Hoops Rumors Glossary: Rookie Scale

When a player like Zaccharie Risacher enters the NBA, his new team – in this case, the Hawks – can rest assured that there’s essentially no chance of him holding out for a larger contract. That’s because a first-round NBA draft pick is only eligible to sign a rookie scale contract, which limits his leverage and ensures that his draft slot will dictate how much he gets paid.

A rookie scale contract for first-rounders is always for two guaranteed seasons, with team options for the third and fourth seasons of the deal. The scale amount is strictly set by draft position for the first three years of the contract, with the amount of the fourth year determined by a percentage raise on the third-year salary, as RealGM’s rookie scale chart for 2024 picks shows.

Players are eligible to sign for as little as 80% or as much as 120% of the scale amount, though almost every player signs for the full 120%. Earlier this month, Knicks first-round pick Pacome Dadiet became the first player since 2019 to sign for just 80% of his rookie scale amount, and even that rate only applies to his rookie season — he’ll get the full 120% in years two through four.

[RELATED: Rookie Scale Salaries For 2024 First-Round Picks]

Under the NBA’s current Collective Bargaining Agreement, the rookie scale increases annually at the same rate as the salary cap. In other words, a 5% salary cap increase would mean a 5% increase to rookie scale salaries.

For the 2024/25 season, the first-year rookie scale amount for the first overall pick is $10,474,200. That number increases to $10,998,100 in year two and $11,521,700 in year three, with a 26.1% raise for year four and a 40% increase for a fifth-year qualifying offer. Risacher signed with the Hawks for 120% of that amount, meaning his contract looks like this:

• Team option in italics
• Qualifying offer in bold

The scale amounts and fourth- and fifth-year raises vary depending on draft position. Top picks earn the highest salaries, while late first-round picks get the most substantial bumps at the end of their contracts. For instance, the 30th overall pick gets an 80.5% raise between years three and four, with a qualifying offer increase of 60%.

Here are several more details relating to rookie scale contracts:

• Only first-round picks are eligible for rookie scale contracts. Second-rounders can be signed using the second-round pick exception (or cap room or other exceptions).
• A team doesn’t have to be under the cap to sign rookie scale contracts. Any team can give a first-rounder a full 120% rookie contract, regardless of its cap status.
• Because 120% contracts are so common, the cap hold for a first-round pick is also 120% of the player’s rookie scale amount.
• Bonuses can be included in rookie scale contracts as long as they don’t exceed 120% of the player’s rookie scale amount. It’s relatively common for teams to include likely incentives a player can earn for his participation in Summer League and offseason workout programs.
• If a player hasn’t signed by January 10, his rookie scale amount begins to prorate downward each day for the remainder of the season until he signs. If there are 174 days in the regular season, the rookie scale amount would prorate downward by 1/174th per day.
• Teams have until October 31 each year to make decisions on the team-option seasons in rookie scale contracts (or the next business day, if October 31 falls on a weekend). By October 31, 2024, teams will have to decide on the options for the 2025/26 season.
• Players coming off rookie-scale contracts may be eligible for larger or smaller qualifying offers in their fifth year, based on whether or not they meet the “starter criteria.” We explain the starter criteria in greater detail here.
• If a team signs a first-round pick within three years of drafting him, the rookie scale for the year in which he signs is used. For instance, Leandro Bolmaro was selected with the No. 23 overall pick in the 2020 draft but didn’t sign an NBA contract with the Timberwolves until the 2021 offseason. As a result, Bolmaro’s rookie scale contract was equivalent to what the No. 23 pick in the 2021 draft received.
• If a first-round pick signs four or more years after being drafted and his team has cap room, he is eligible to receive a salary greater than 120% of his rookie scale amount. In practice, however, this essentially never happens.

Note: This is a Hoops Rumors Glossary entry. Our glossary posts will explain specific rules relating to trades, free agency, or other aspects of the NBA’s Collective Bargaining Agreement. Larry Coon’s Salary Cap FAQ was used in the creation of this post.

Earlier versions of this post were published in 2012 and 2019.