Hoops Rumors Glossary: Maximum Salary

There are many NBA players technically on maximum-salary contracts, but most of those players didn’t earn identical salaries this season, making the league’s “maximum salary” something of a misnomer. While each NBA player has a maximum salary that he can earn in a given season, that number varies from player to player, with a handful of factors playing a part in determining the exact figure.

The primary factor in determining a player’s maximum salary is his years of service. If a player has been in the NBA for six seasons or fewer, he can earn up to 25% of the salary cap in the first year of his deal. Players with seven to nine years of experience can earn up to 30%, while veterans with 10 or more years in the NBA are eligible for up to 35% of the cap. In 2023/24, the salary cap was $136,021,000, meaning the maximum salaries are as follows:

Years in NBA Salary
0-6 $34,005,250
7-9 $40,806,300
10+ $47,607,350

The figures above explain why Fred VanVleet, who signed a maximum-salary contract with the Rockets last July following his seventh NBA season, earned a salary of $40,806,300 this season. But they don’t explain why Timberwolves big man Karl-Anthony Towns, who was also in that 7-9 year window and is on a max contract of his own, made just $36,016,200.

The reason Towns’ maximum salary is a few million shy of VanVleet’s is that those league-wide maximum salary figures only apply to the first year of a multiyear contract.

When a player signs a maximum contract, he can receive annual raises of up to either 8% or 5%, depending on whether he signs with his previous team or a new team. So by the third, fourth, or fifth year of his contract, he could be earning significantly more or less than his updated max for that season, depending on the rate the salary cap has been increasing and whether or not he has moved into a new “years of service” group.

Towns signed his first maximum-salary contract extension in 2018 and it went into effect in 2019/20, when he had fewer than six years of NBA experience. Although he has received annual 8% raises since then, those raises haven’t been enough to keep up with the annual cap growth and with his move into the 7-9 year window. As a result, he earned about $4.8MM less than his actual max in 2023/24, despite being on a “max contract.”

Towns signed a new contract extension in 2022 that will go into effect in 2024/25, so he’ll receive a major pay bump heading into next season and will comfortably surpass VanVleet’s annual earnings at that time.

Here are a couple more ways a player’s usual maximum salary can fluctuate:

  • A free agent’s maximum salary is always at least 105% of his previous salary. For example, Lakers star LeBron James earned $47,607,350 this past season. If he were to decline his player option for 2024/25 in order to sign a new contract, he’d be eligible to receive a starting salary of up to $49,987,718 (105% of this year’s salary), even though that figure projects to exceed 35% of the ’24/25 cap ($49,350,000).
  • In certain situations, players eligible for new contracts can earn the maximum salary for the level above the one they’d typically fall into. A player coming off his rookie scale contract can earn up to 30% of the cap instead of 25% if he meets certain performance criteria. A veteran can become eligible to earn up to 35% of the cap instead of 30% if he meets the same criteria, which are related to MVP, Defensive Player of the Year, or All-NBA honors.

Because a player can receive a raise of up to 40% in the first year of a veteran extension, there are some instances when a player who signs an extension not necessarily designed to be a maximum-salary contract sees the first-year salary in his new deal adjusted downward based on that year’s cap. Clippers forward Kawhi Leonard is one example. His new extension, which will begin in 2024/25, calls for a first-year salary of $52,368,085, which is a raise in the neighborhood of 15% on this season’s $45,640,084 salary.

However, because next year’s league-wide maximum salary for players with 10+ years of NBA experience projects to be $49,350,000 (which would be more than a 5% raise for Leonard), he can’t exceed that figure. That $49.35MM figure will be the value of his 2024/25 salary if the cap comes in at $141MM, as estimated. And Kawhi’s three-year extension, which was originally said to be worth over $152MM, will actually end up closer to $149MM.

A player who signs a maximum-salary contract can receive a trade kicker as part of his deal, but he can’t cash in on that bonus for any amount beyond his maximum salary in a given league year. For instance, Trae Young‘s max-salary contract with the Hawks features a 15% trade kicker, but if he had been traded this season, he wouldn’t have been eligible to receive that bonus, since he was already earning his maximum salary of $40,064,220.

A player on a maximum-salary deal that includes a trade kicker can potentially cash in on that bonus if he’s dealt later in that contract. For example, Brandon Ingram is on a max contract, but – like Towns – was earning well below his actual max in 2023/24, year four of that five-year deal. If he had been moved by the Pelicans this season, he would’ve been eligible to take advantage of his trade kicker. That remains true for Ingram going forward.

A maximum-salary player whose team finishes the season below the minimum salary floor isn’t eligible to receive a share when the team distributes that money to its players, since his max salary for that year can’t be exceeded.

The current figures for maximum salaries in 2024/25 are as follows, based on the NBA’s projection of a $141MM salary cap:

Years in NBA Salary
0-6 $35,250,000
7-9 $42,300,000
10+ $49,350,000

These figures will apply to players who previously signed maximum salary extensions that will go into effect in ’24/25, including Towns, Devin Booker, Anthony Edwards, Tyrese Haliburton, LaMelo Ball, and Jaylen Brown.


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 previously published by Luke Adams and Chuck Myron.

Mavericks Sign Jason Kidd To Multiyear Extension

The Mavericks have signed head coach Jason Kidd to an extension, the team announced today in a press release. No details were provided on the contract beyond the fact that it’s a “multiyear” deal.

“We are excited to have Coach Kidd continue to lead our team throughout the coming years with this well-earned contract extension,” Mavericks governor Patrick Dumont said in a statement. “Kidd led our team to two playoff appearances in three seasons, and we are looking forward to his leadership in continuing to build and grow this already great franchise.”

“I have known Jason for a long time, and I cannot think of a better, more qualified candidate to lead this team going forward,” general manager Nico Harrison added in a statement of his own. “As a former NBA Champion Hall of Fame player, Jason brings a wealth of experience and expertise to this role which cannot be duplicated. He has earned the trust and respect of our players and that of so many across the league, and I look forward to working alongside him as we continue to build upon the culture and foundation of success he’s helped foster throughout his tenure as head coach.”

Kidd, who was hired by the Mavericks in 2021 following past head coaching stints in Brooklyn and Milwaukee, has led the team to a 140-106 (.569) regular season record across three seasons, with a postseason mark of 13-11, including three playoff series wins.

There was some real pressure on Kidd entering this season following a disappointing 2022/23 campaign in which Dallas went 38-44 and missed the play-in tournament. Another underwhelming result would likely have put the head coach – whose initial contract ran through 2024/25 – on the hot seat.

Kidd responded by guiding the Mavs to a 50-32 record and a first-round victory over the Clippers. The team will be looking to advance even further in the postseason when it takes on a talented young Thunder team in round two. That series tips off on Tuesday.

The Mavericks’ new agreement with Kidd will formally end any speculation that he may end up as the new head coach of the Lakers, which already appeared very unlikely. Kidd served as an assistant coach for the Lakers from 2019-21, between head coaching jobs.

Cavs Notes: Mitchell, Game 7 Win, Celtics Series, Garland

Entering this year’s postseason, Donovan Mitchell had been knocked out of the playoffs in the first round in back-to-back years – and four of the last five – with the Cavaliers and Jazz. He said after Sunday’s Game 7 win that he was determined not to let that happen again, according to Kendra Andrews of ESPN.

“I’m tired of losing in the first round,” Mitchell said. “You work too hard. We work too hard. That was my mindset … for me, just be in attack mode. I’m battling through what I’m battling through, but I could battle through it and figure it out, or rehab it for the next three or four months. That’s where I’m at mentally.”

Mitchell, who continues to deal with a knee issue that seemed to be bothering him on Sunday, got off to a slow start in Game 7, but went on a huge run after the Magic built an 18-point lead midway through the second quarter. At one point, Andrews notes, Mitchell outscored Orlando 20-19 on his own from the middle of the second quarter through the end of the third. As Andrews details, head coach J.B. Bickerstaff said the star guard – who finished with 39 points – was leading the way for the Cavs not just with his play on the court but with his attitude during the comeback.

“[Mitchell is] the guy that can pull everybody along, not just with his skill but in spirit as well,” Bickerstaff said. “When you see your teammate, a guy you care about playing that way, you don’t want to let that guy down so you go out and do whatever you can to help that guy. We talk about how everybody has their style and their piece of leadership here and that’s how Don leads, by being special in the moment. His teammates want to be a part of it.”

Here’s more on the Cavs:

  • The first-round victory over Orlando represents the first time Cleveland has won a playoff series since LeBron James‘ 2018 departure, but simply advancing to the second round isn’t the goal. As Andrews relays, Bickerstaff told reporters that “we’re not done yet” and his players echoed that message. “We didn’t make the group we made just to come in and win the first round,” Mitchell said. “We accomplished one goal, now we have to do it again. That’s the mindset. … When they traded for me, it wasn’t just to win a first-round series, it was to continue to push and move forward. And I think that’s where all of our heads are at.”
  • As Joe Vardon of The Athletic writes, the Cavaliers made just 28.7% of their three-point shots vs. Orlando, were out-rebounded, committed more turnovers and fouls, and were outscored by 31 points over the seven-game series. It wasn’t the sort of performance that inspires much confidence in their chances vs. the league-best Celtics, but Mitchell doesn’t mind entering that series as underdogs. “For us coming into Boston, I’m pretty sure everybody thinks they’re going to come in and kick our ass,” Mitchell said. “(We need to) continue to stay level-headed throughout, not listen to, well, y’all, and just be who we are. That’s the biggest thing.”
  • It was an up-and-down series for Mitchell’s backcourt mate Darius Garland, who played well in Games 5 and 6 but averaged just 12.0 points per game on 41.9% shooting in the first four games of the series and contributed 12 points on 3-of-13 shooting on Sunday. However, as Tom Withers of The Associated Press details, Garland made a big three-pointer in the fourth quarter off an assist from Mitchell, who hugged him after the shot forced a Magic timeout. “He knew that I was a little bit down in the first half, but he kept trusting me,” Garland said. “It’s cool just having him in my ear a little bit, just telling me to keep going, stay confident in myself. I really needed it.”

Nuggets Notes: Murray, Slow Starts, Series Deficit, Offense

Jamal Murray is listed as questionable for Game 2 of the Nuggets’ second-round series against the Timberwolves, Harrison Wind of DNVR Sports tweets. Murray was also listed as questionable prior to Game 1, in which he was held to 17 points and four assists.

Murray, who is dealing with a calf strain, said on Sunday he’ll just have to grin and bear it, Wind adds in another tweet.

“It’s going to be a part of it. I’ve accepted that,” he said. “There are counters for everything, so I’ve just got to keep adjusting. We’ve got to keep adjusting and find ways to get it done. The calf is whatever it is.”

We have more on the Nuggets:

  • Denver was down 18-4 in the early going of the 106-99 loss and coach Michael Malone is weary of the slow starts. “We have to do a better job, our starters in particular, have to do a better job of being ready to play and setting the tone early,” Malone said, per ESPN’s Dave McMenamin. “What are we waiting for? I mean, now we’re down 0-1, what are you waiting for?”
  • The Nuggets never trailed in a series during their championship run last season, nor did they lose a home game until the NBA Finals. So, their drive for a repeat will have to be achieved with more adversity, McMenamin notes. “This year is different,” Malone said. “It’s a different team. It’s a different setup. And now it’s a new challenge. So let’s embrace that. We are down. We didn’t want to be, but we are. So let’s fight like hell (Monday) night and leave it all out there.”
  • The Nuggets didn’t shoot that badly in Game 1, making 46.7% of their field goal attempts and 41.9% on 3-point tries. Still, Malone saw plenty of room for improvement after reviewing the film, the Denver Post’s Bennett Durando tweets. “Offensively, there were probably 15 possessions where no one had any idea what we were in,” he said. “Not organized. Didn’t space the floor. You can do that against certain teams in the regular season. But against Minnesota … you can’t afford wasted possessions.”

And-Ones: MVP Race, Awards Announcements, Barton, Betting, Barkley

Nikola Jokic, Luka Doncic and Shai Gilgeous-Alexander are the finalists for the Most Valuable Player award. ESPN’s Zach Lowe and Tim Bontemps take a closer look at the contenders and reveal the results of a straw poll. Jokic is the clear favorite to win the award for the third time, while Lowe gives Doncic the edge for second place due to his superior play-making.

We have more from around the basketball world:

  • Speaking of the MVP race, the league will announce the winner on Wednesday night, according to NBA Communications (Twitter link). The Rookie of the Year award will be announced on Monday and the Defensive Player of the Year will be revealed on Tuesday. Victor Wembanyama and Rudy Gobert, respectively, are the favorites for those two awards.
  • Former NBA forward Will Barton has joined Cangrejeros de Santurce, a Puerto Rican team, according to Sportando. Bardon also had short stints wih CSKA Moscow and Granada this season. Barton played a total of 56 games for Washington and Toronto last season.
  • In the aftermath of Jontay Porter getting banned from the NBA for gambling-related offenses related to prop bets, the NBA and its partner sportsbooks are discussing changes to combat similar occurrences in the future, David Purdum of ESPN reports. Among the changes that have been discussed is prohibiting betting on players with two-way contracts. There have also been discussions on not allowing bets on the “under” on a player prop, though there are concerns that restricting wagers could push bettors into the unregulated betting market.
  • Charles Barkley stated on the Dan Patrick Show (Twitter link) that if TNT loses its NBA broadcasting rights, he’ll become a free agent. He’s unsure about “Inside the NBA” moving to another network because host Ernie Johnson said he wouldn’t leave Turner Sports. The NBA is in serious negotiations with NBC, Amazon and ESPN/ABC to split up the broadcasting rights, which could leave TNT out of the picture.

Northwest Notes: Blazers’ Staff, Edwards, Thunder Bench

The Trail Blazers are shaking up Chauncey Billups’ coaching staff. They are not renewing the contracts of lead assistant Scott Brooks or Chauncey’s younger brother Rodney Billups, Aaron Fentress of the Oregonian reports. They now have three vacancies on the staff, since Steve Hetzel recently departed to join the staff of new Nets head coach Jordi Fernandez.

We have more on the Northwest Division:

  • Timberwolves All-Star Anthony Edwards torched Denver’s defense for 43 points in Game 1 of the Western Conference semifinals on Saturday. Edwards received good news from the NBA on Sunday, as the technical he was assessed during the third quarter has been rescinded by the league, Dave McMenamin of ESPN tweets. Edwards was given the tech for staring down Reggie Jackson.
  • The ThunderMavericks series begins on Tuesday and Thunder beat writer Ryan Stiles believes the Oklahoma City’s bench could be a deciding factor. They can call on Cason Wallace, Isaiah Joe, Aaron Wiggins, Gordon Hayward and Kenrich Williams to provide an impact,
  • In another piece from Stiles, he explores six other storylines to watch in the ThunderMavericks series.

Jason Kidd, Ty Lue Unlikely To Be Candidates For Lakers’ Job

Don’t expect Jason Kidd or Tyronn Lue to replace Darvin Ham as the Lakers’ head coach, Marc Stein reports in his latest Stein Line notes package.

Kidd, who has one year left on his contract with the Mavericks, will likely receive a contract extension in the near future after the team advanced to the Western Conference semifinals, according to Stein’s sources. Kidd was a top Lakers assistant coach under Frank Vogel.

As previously reported by ESPN, the Clippers are expected to pursue an extension with Lue, who also has one year remaining on his deal. Lue has stated he’s eager to sign an extension with their organization.

That would block not only the Lakers but the Suns from making a run at Lue. It’s also believed that the Cavaliers would be interested in a Lue reunion if they decide to change coaches. However, J.B. Bickerstaff strengthened his resume as the Cavs rallied to win Game 7 against Orlando on Sunday and advanced to the second round.

That’s why it’s not a far-fetched notion that J.J. Redick has a shot to replace Ham, Stein adds, despite Redick’s lack of coaching experience. Redick, who is also a candidate for the Hornets’ opening, is currently an ESPN analyst and podcaster after a long NBA career.

Like Kidd, Mavericks GM Nico Harrison is also on course for a contract extension from new Mavericks majority owner Patrick Dumont, Stein says.

Harrison’s trade-deadline acquisitions of P.J. Washington and Daniel Gafford helped the team win 50 games again during the regular season and claim the No. 5 seed in the West. His risky acquisition of Kyrie Irving last season has worked out even better than most NBA observers anticipated.

Central Notes: Pistons’ Depth, Trade Options, Mitchell

The depth of this season’s playoff rosters serves as a reminder that the Pistons are severely lacking in that department, suggests Omari Sankofa II of The Detroit Free Press.

Sankofa points to the five rotation players on the West’s top-seeded Thunder who went undrafted or were second-round picks as something of an indictment on Detroit’s inability to find much value at that stage of the draft (or after the draft) in recent years. Sankofa also takes current lead front office architect Troy Weaver to task for whiffing on several deeper picks and fringe roster free agency signings during his tenure.

There’s more out of the Central Division:

  • The Pistons seem poised to try to make significant personnel changes this summer, opines James Edwards III of The Athletic. Edwards and a few other staffers on The Athletic break down potential trade targets and packages for the rebuilding club, including former All-Stars like Brandon Ingram and Lauri Markkanen.
  • Even with rumors swirling around Donovan Mitchell‘s long-term future with the Cavaliers, the star guard managed to pull off a winning performance in the team’s Game 7 comeback victory against the Magic on Sunday, writes Joe Vardon of The Athletic. After pouring in 50 points in a losing Game 6 effort against Orlando, Mitchell scored 39 points in Sunday’s 106-94 elimination contest win. Thus far in these playoffs, he’s averaging 28.7 PPG on .459/.250/.824 shooting, with 5.0 RPG, 4.4 APG and 1.4 SPG.
  • In case you missed it, long-injured Bulls point guard Lonzo Ball picked up his $21.4MM player option for the 2024/25 season, as had long been expected.

Atlantic Notes: Batum, Nets, Ex-Raptors, Celtics-Cavs

Sixers forward Nicolas Batum kept things fairly open when it came to talk of his potential NBA retirement, writes Gina Mizell of The Philadelphia Inquirer. The 35-year-old is now a free agent, having wrapped up his two-year, $22.6MM contract at the end of Philadelphia’s 2023/24 season. There were rumors prior to the season that it could be his last in the NBA.

Batum told gathered media that he is, for now, just thinking about playing for his native Team France in this year’s Paris Olympics. He then reflected on his initial impressions of the Sixers.

“One thing I’ve learned is Philly is not for everybody, though,” Batum said. “You’ve got to be ready to play for that city, and I loved it. … I could feel the passion of this city for sports, for the Sixers. And I [felt] it right away, my first game against the Wizards. I [came] in and could feel it… And those fans, even when they’re not happy, you get booed, but I understand why. … I tried to [say to myself], ‘OK, they’re right. Because we suck right now, so we’ve got to play better.’”

There’s more out of the Atlantic Division:

  • The Nets are set to retain assistant coach Jay Hernandez under new head coach Jordi Fernandez, but will be parting ways with assistants Will Weaver and Ronnie Burrell, reports Michael Scotto of HoopsHype (Twitter link).
  • A pair of beloved former Raptors championship-era teammates, OG Anunoby and Pascal Siakam, are set to square off against one another for the first team in an impending matchup between the former’s Knicks and the latter’s Pacers, writes Zach Braziller of The New York Post. “Yeah, it’ll be weird,” Anunoby said this weekend. “I never played against him. He’s always been my teammate, so it’ll be weird, but it’ll be cool, I’m sure. He’s looking forward to it, too.”
  • The NBA has revealed its full schedule for the Celtics’ second-round series against the Cavaliers. Game 1 will tip off on Tuesday, in Boston, at 6 p.m. CT via TNT. They’ll meet again for Game 2 on Thursday, at the same time, on ESPN. The series will move to Cleveland for Game 3 on Saturday, and will start a bit later, at 7:30 p.m. CT, on ABC. A start time for Monday’s Game 4 has yet to be announced.

Northwest Notes: Connelly, Edwards, Murray, Nuggets

Nuggets-turned-Timberwolves team president Tim Connelly has reconfigured Minnesota to be potential giant-slayers against the reigning champs, writes Sam Amick of The Athletic. Connelly has made some major changes to the team since taking over the front office in 2022, most notably acquiring former Jazz stars Mike Conley and Rudy Gobert, plus swingman Nickeil Alexander-Walker.

As Amick notes, Connelly’s decision to emphasize an oversized frontcourt seemed like a direct response to two-time MVP Denver center Nikola Jokic. Connelly has, for now, been striving to retain incumbent big men Karl-Anthony Towns and Naz Reid, the latter of whom he signed to a three-season, $42MM contract as a free agent in 2023.

Following an uncharacteristic 106-99 Game 1 Denver loss to Minnesota, Jokic himself praised the opposition’s flexibility.

“I think that’s why they’re good,” Jokic opined. “They can play big. They can play small. …They’re long, physical. They rebound really well. They’re aggressive. I’m satisfied with the shots that I took. Some of them I missed. Some of them I made. So it’s a tough game, and they’re a really good defensive team.”

For his part, three-time Defensive Player of the Year Gobert appeared to be reveling in the challenge of trying to contain – or at least slow – Jokic.

“I mean, to me, he’s the best player in the world,” Gobert told Amick. “He’s soon to be a three-time MVP for a reason, but I think my abilities are unique in the way I can impact the basketball game. That’s why I’m really grateful for Tim Connelly and all these guys for believing in me, bringing me in this situation to help this team become a championship team and be a top defense. That’s who I try to be every day.”

There’s more out of the Northwest Division:

  • Timberwolves All-Star shooting guard Anthony Edwards has been looking positively Michael Jordan-esque during Minnesota’s playoff run thus far, opines Marcus Thompson II of The Athletic. As Thompson writes, Edwards has been used a variety of patented moves, on both ends, that emulte the former Bulls great’s signature style — from clutch fadeaway jumpers to thorough perimeter defense to extended mid-air hang time.
  • Nuggets point guard Jamal Murray, struggling with a calf strain, has also been dealing with some shooting inconsistencies for much of these playoffs to this point. Those issues popped up again during Denver’s Game 1 defeat against the Timberwolves, according to Ryan McFadden of The Denver Post. During the Nuggets’ five-game first round series against the Lakers, Murray made just 40% of his field goal attempts and 29.4% of his three-pointers. Against Minnesota, the Kentucky vet scored 17 points on just 6-of-14 shooting from the floor.
  • Now trailing 1-0 to the Timberwolves in their second round playoff series, the Nuggets find themselves playing catch-up in a series for the first time in years, per Tony Jones of The Athletic. As Jones notes, Minnesota is one of the few teams with the kind of big, physical roster that’s truly capable of giving Denver trouble throughout the course of a series. The Nuggets will face the challenge of containing Edwards’ athletic, three-level scoring, in particular, while Minnesota’s frontline is able to at least somewhat mitigate the efficacy of Jokic, Aaron Gordon and Michael Porter Jr.