CBA Mastery Course Key Terms Flashcards
5th Year, 30% Max Criteria
A threshold that allows a player to re-sign for up to 30% of the cap in a rookie extension.
A player qualifies by being named MVP (any of last 3 seasons), All - NBA or DPOY (last season, or 2 of last 3 seasons)
Actual Revenues
The Basketball Related Income (BRI) actually received by the league in a season, as determined by the league audit at the conclusion of the season
Advances
Any regular salary (not bonuses) paid to a player prior to the first league payday on November 15
Aggregation
Combining 2 or more outgoing salaries in a trade, for the purpose of bringing back a player with a higher salary than either player in the aggregation can bring back alone.
For example: a $10 million player can be traded for a $12 million player without Aggregation, but his salary must be Aggregated with another salary to bring back a $15 million player
Alternative Pay Arrangements
Any non-standard pay accommodations, including include different pay schedules, advances, deferred compensation, loans and signing bonuses
Amendment (Contract)
An agreement between a team and player to change the terms of an existing contract
Antitrust Law
The collection of laws the regulate businesses, generally to promote competition for the benefit of employees and consumers
Apron
The threshold (approx. $6 million above the luxury tax threshold) above which certain exceptions are lost.
Conversely, when a team is below the Apron and uses those exceptions, the Apron becomes a de facto hard cap
Apron Amount
The amount by which the Apron exceeds the Luxury Tax threshold. The Apron Amount rises or falls each Salary Cap Year by one half percentage that the Salary Cap rises or falls
Articles
The principal divisions of the CBA, which contains 42 Articles. (does not include Exhibits)
Base Year Compensation (BYC)
A rule helping to ensure players’ salaries reflect their value as basketball players, and not their trade value, by temporarily lowering their outgoing Salaries in Trade.
While BYC is not a named term in the current CBA, the same rules exists in the current CBA for certain sign and trade transactions
Basketball Related Income (BRI)
All income that arises directly or indirectly out of the performance of players in NBA basketball games or in NBA related activities. This includes income from subsidiaries NBA Properties and NBA Media Ventures, as well as income from League Related Entities
Basketball Related Injury
A form of compensation protection covering an injury that occurs in the course of a player providing playing services for his team
Bi-Annual Exception
An Exception allowing a player to be signed for up to 2 years with 5% raises. This exception cannot be used in consecutive seasons
Bird Clock
An informal term for the 3 year tenure ramp up to gain increasing Bird Rights
Bird Rights
Designate a player’s ability to re-sign with his prior team using the Veteran Free Agent exception
Buyout
A “divorce” agreement between between a player and team, where the player’s contract is amended to reduce the player’s compensation protection to a negotiated amount, in exchange for the team waiving the player
Cap Hold
A dollar amount that applies to a team’s Team Salary. A cap hold accounts for a right held by the team, by acting as a placeholder for money they’re expected to spend using that right.
There are cap holds for exceptions, unsigned 1st round draft picks, and empty roster spots
Cap Team
A team with a Team Salary near or above the salary cap, that therefore must utilize an Exception to conduct a transaction. A team is considered to be a Cap Team (and therefore must use an exception) when it:
1. Has a Team Salary above the cap
2. Has a Team Salary below the cap, by less than the sum of its Exceptions (so its cap holds push its Team Salary over the cap)
3. Is below the cap, but a transaction leaves them above the cap. The exception is when a team sufficiently lowers its Team Salary as a result of a transaction that it finishes with a Team Salary below the cap
Career Ending Injury or Illness
When an appointed physician determines that a player’s injury or illness is career ending, the team can apply for salary cap relief following a mandatory waiting period. If the application is granted, the player’s salary is removed from the team’s Team Salary
Cash in Trade
Financial considerations (rather than players or draft assets) that are conveyed from one team to another in a trade. Cash in Trade is subject to the Maximum Annual Cash Limit
Certification
All parties involved in a transaction certify, under penalty of perjury, that there are no side agreements of any kind related to that transaction.
In addition, the team’s governor signs an annual certification stating that the team has not violated any of the circumvention rules
Circumvention
Doing anything intended to get around the intent of the CBA
Clear Waivers
A player “clears waivers” when he is placed on waivers and is not claimed by another team within 48 hours. He then becomes an unrestricted free agent
Collective Bargaining
The process of negotiation between employers and a group of employees regarding working terms and conditions
Collective Bargaining Agreement
A written contract negotiated through collective bargaining. The NBA’s Collective Bargaining agreement regulates league operations and its relationship with players
Collusion
When teams enter into agreements with each other regarding negotiating or not negotiating with any player, submitting or not submitting an offer sheet to a player, offering or not offering a contract to a player, etc
Compensation Protection
Guaranteed salary, i.e., salary that is guaranteed to be paid even if the player is waived before the end of the contract
Contingent Protection
Compensation protection that requires a condition to be met.
For example, a player’s salary becomes guaranteed if he is on the roster as of July 1, 2021
Current Base Compensation
Salary paid to a player by May 1 of the season following the one in which it is earned
Cut Down Date
On January 10, all contracts become fully guaranteed for the remainder of that season
Decertification
When members of a union remove the union as its exclusive representative. This ends the relationship between the union and its members, so in the NBA it ends the relationship between the players association and the league.
Potential consequences include exposing the league to Antitrust regulations
Deferred Base Compensation
Any salary paid after May 1 of the season following the one in which its earned
Designated Rookie
A player who has been designated by his team to receive a longer (5 year) rookie extension
Designated Rookie Extension
A Rookie Extension in which the player receives 5 new seasons rather than 4
Designated Veteran
A player who has met the performance and tenure criteria to receive a more lucrative (up to the 10+ year maximum) contract or extension starting in his 9th or 10th season
Designated Veteran Extension
A Veteran Extension in which the player meets criteria (years of service, tenure and performance) and receives a salary starting above 25% and up to 30% of the salary cap
Disabled Player Exception
A salary cap exception providing cap room to sign a replacement for an ill/injured player who will be out the remainder of that season.
This exception must be approved by the league
Disqualification
When a player is dismissed from the league in conjunction with the Drugs of Abuse Program, Domestic Violence Program, gambling on NBA games, or involved in any way with game fixing
Domestic Violence Program
The program, focused on educational programs and awareness training, that deals with domestic violence, child abuse and sexual assault
Early Bird Exception
An Exception allowing teams to re-sign their Early Qualifying Veteran Free Agents to lucrative contracts
Early Qualifying Veteran Free Agent (EQVFA)
The term used in the CBA for a player with Early Bird rights (2 seasons on his Bird Clock)
Early Entry Player
A player who applies for entry in the NBA draft who has met the basic age requirement (at least age 19 with 1 elapsed season since high school graduation), but who has not met the additional requirements.
For domestic players the additional requirements are related to college graduation. For international players, the additional requirements are age 22 or playing professionally in the US but outside the NBA
Early Termination Option (ETO)
A contract provision allowing a player to terminate his contract and become a free agent, a year before it was scheduled to end
Escrow System
The system in which a portion of player salaries are collected until the end of the season. At the end of the season, when the players’ Revenue Guarantee amount is known, escrow proceeds are returned to players in the amount need to equal their Revenue Guarantee, with the remainder returned to the teams
Estimated Average Salary
The projected value for the league’s average salary, calculated using 104.5% of the previous season’s actual average salary
Exception
A mechanism allowing a team to conduct transactions that result in the team being over the salary cap
Excluded International Player Payment Amount
The maximum amount an NBA team can pay to an international team as an International Buyout without counting toward Team Salary
Exhibit 1
The attachment to a Uniform Player Contract detailing the player’s base salary, deferred salary, payment schedule, signing bonus, incentive compensation, and other arrangements such as options, ETO’s and no trade clauses
Exhibit 7
A provision of the Uniform Player Contract providing language that is more favorable to the player when the team suspends the player because he’s not in game shape
Exhibit 8
The UPC Exhibit that is used when a Sign and Trade is executed. Exhibit 8 states that the contract is invalid if the trade to the specific team (named in the Exhibit) is not completed within 48 hours
Exhibit 9
A contract provision that limits the team’s liability to $6,000 if the player is injured while playing for the team. Exhibit 9 is often used for training camp invitees
Exhibits
Attachments to the CBA, which follow the Articles. In the NBA’s CBA, the Exhibits include the Uniform Player Contract
The portion of the Uniform Player Contract (following boilerplate paragraphs) that are individualized to the player, including compensation, guarantees, and other individual limitations
Extension
A contract amendment in which additional seasons are added
Extension and Trade
A contract extension done in conjunction with an immediate trade
5th Year, 30% Max Criteria
The criteria a player must meet to be eligible for a higher salary in a Rookie Extension
- Named MVP (any of 3 preceding seasons)
- Any All - NBA team (preceding season, or both seasons that came before the preceding season)
- Defensive Player of the Year (preceding season, or both seasons that came before the preceding season)
First Allowable Draft
A way of specifying the year of a draft pick trade, when the exact year of the pick isn’t known at the time of the trade due to pick protections from a previous trade.
The First Allowable Draft would be 2 drafts after the first pick actually conveys
First Refusal Exercise Notice
When a Restricted Free Agent signs an offer sheet with a new team, a First Refusal Exercise notice is used by the player’s prior team to match the offer and keep the player
Fitness to Play Panels
Panels consisting of experts in specific medical specialties, which review a referred player’s fitness to play
i.e., whether the player continuing to play constitutes a medically unacceptable risk
Free Agent Amount
Also known as: Free Agent Cap Hold
A cap hold for a team’s own free agent, accounting for the team’s right to exceed the cap to re-sign its free agent using Bird rights. The amount of the cap hold is determined using a formula. It is an approximation of the salary a typical free agent in that situation will receive in a new contract, based on his previous salary and other factors
Fundamental Rule of the Salary Cap
A team’s Team Salary must remain below the salary cap, unless they are using an Exception
G-League Player
A player signed by the G-League, as opposed to a Two Way player or NBA player
General Prohibition Against Circumvention
A blanket provision covering instances of circumvention that aren’t literally specified in the CBA. The General Prohibition gives the league the right to disqualify transactions it feels are skirting the intent of the CBA
Gilbert Arenas Provision
A rule that limits Offer Sheets to restricted free agents with 1 or 2 years in the league. The first year of an Arenas offer sheet is limited to the Non-Taxpayer Mid-Level exception amount, but the player can receive a substantial raise starting in year 3
Guarantee
Another name for Compensation Protection. Salary the player is guaranteed to receive even if he is waived and his contract is terminated
Hard Cap
A condition created when a team uses its Non-Taxpayer Mid-Level or Bi-Annual exception, or receives a player in a Sign and Trade transaction. The Team Salary of team is this situation cannot be above the Apron for any reason, for the remainder of that salary cap year.
A salary cap system in which the cap cannot be exceeded under any circumstances - in other words, one without Exceptions. The NBA Salary Cap functions as a hard cap only when teams utilize exceptions that are reserved for lower spending teams
Hardships
A status that may be granted by the league when a team has 4 players who are simultaneously sick or injured. A Hardship designation enables a team to sign an additional player beyond the normal roster limits, however it does not provide an exception or room under the salary cap to do so
Incentive Compensation
Compensation that is contingent on the player or team meeting performance thresholds.
Incentives include performance bonuses, academic/physical achievement bonuses, and extra promotional bonuses
Injury or Illness
A form of compensation protection covering any injury or illness that affects the player’s ability to provide playing services, whether or not the injury or illness was basketball related
International Buyout
A payment made to an international team to release a player’s rights, allowing the player to sign with an NBA team
International Player
A release from a player’s national basketball federation certifying that the player is free from contractual obligations that would prohibit him from signing in the NBA.
A Letter of Clearance is required for a player who is currently playing or last played for an international team
July Moratorium
A span of time at the start of each Salary Cap Year during which most signings and trades are not allowed. The July Moratorium currently lasts from the start of the Salary Cap Year on July 1 until noon on July 6
Labor Law
The collection of laws that deal with employment, including the relationship between employers, employees and unions
Lack of Skill
A form of compensation protection covering the team waiving the player because his playing services are not at a sufficient level to justify remaining on the team’s roster
Larry Bird Exception
An Exception allowing teams to re-sign their Qualifying Veteran Free Agents to lucrative contracts
Later Signed First Round Pick
A 1st round draft pick who was not signed within 3 seasons after being drafted
League Related Entity
Any business at least 50% owned by the NBA, any of its subsidiaries, or any of its teams.
An amount of the League Related Entity’s income is included in BRI, proportional to the percentage of league/team ownership
Letter of Clearance
A document from a FIBA member’s national organization stating that a player is not under contractual obligation in that country
Loans
Money advanced from the team to the player that must be repaid
Lockout
A denial of employment initiated by management during a labor dispute (as opposed to a strike, which is initiated by employees)
Love of the Game
A clause commonly negotiated into individual contracts, waiving pickup basketball as a prohibited activity
Luxury Tax
A spending disincentive and a form of revenue sharing between teams whereby teams above the Luxury Tax Threshold pay tax on the basis of their Team Salary amounts, and teams with Team Salaries below the Luxury Tax Threshold are recipients of a portion of the tax proceeds
Maximum Annual Cash Limit
A team’s limit to the amount of Cash in Trade that can be conveyed across all trades in a salary cap year. Each team has separate limits for the amounts it can receive and convey to other teams
Maximum Qualifying Offer
An optional Qualifying Offer submitted in addition to a standard Qualifying Offer, which provides the maximum years, salaries and raises, that is fully guaranteed, with no options or bonuses.
A Restricted Free Agent is allowed to accept either his regular Qualifying Offer or his Maximum Qualifying Offer
Maximum Salary
Refers to the highest salary a player can receive in the first year of a contract or extension. Personal maximums (105% of prior salary) can trump league wide maximums (25%, 30% or 35% of cap, based on tenure)
Mid Level Exception
A salary cap exception allowing teams to sign any free agent or draft pick to a mid level contract.
There are 3 versions of this exception - Non Taxpayer, Taxpayer, and Room - that allow different starting salaries and contract lengths
Minimum Player Salary Exception
A salary cap exception allowing teams to sign players to minimum salary contracts for up to 2 seasons
Minimum Salary
The lowest full salary a player can receive, based on years of service. Minimum salary players sign contracts with Exhibit 1A in place of Exhibit 1
Minimum Salary Scale
Pre-set salary amounts for all seasons of a minimum salary contract, based on the year the player signs and the player’s tenure
Minimum Team Salary
The lowest amount a team can spend on player payroll in a given season, which is 90% of the Salary Cap. The Minimum Team Salary is based on actual payroll, and not Team Salary amounts
Negotiated No-Trade Clause
An “Other Consideration” in Exhibit 1 of the UPC, giving the player the right to consent to any trade
Non-Bird Exception
An Exception allowing teams to re-sign their Non Qualifying Veteran Free Agents to lucrative contracts
Non Qualifying Veteran Free Agent
The term used in the CBA for a player with non-Bird rights (1 season on his Bird Clock)
Non Simultaneous Trade
A trade that is not Simultaneous. If a player is traded without Aggregation, and the trade does not return more than the player’s salary plus $100,000, then the team has 1 year to acquire additional salaries in subsequent trades, bringing the total up to the traded player’s salary plus $100,000
Non Statutory Labor Exemption
The portion of federal antitrust laws that exempts collective bargaining agreements from antitrust liability, instead placing them in the arena of labor law
Non Taxpayer Mid Level Exception
A version of the Mid Level Exception allowing teams to sign players for up to 4 years, starting at approximately the average player salary ($9.258 million in 2019-20)
This exception is available only to teams who are (and remain) below the Apron
Offer Sheet
A contract offer made to a restricted free agent by a team (other than the player’s prior team) that wishes to sign the player. An Offer Sheet is then given to the player’s prior team, which then has 2 days to exercise its Right of First Refusal
One Plus One Contract
A contract configuration commonly signed by player who wish to maximize their flexibility: 1 guaranteed year, plus 1 player option year. The second season functions primarily as an insurance policy
Option
A contract provision allowing a contract to be extended for 1 additional season. Can be a Player Option (player decides) or Team Option (team decides)
Overage
The amount by which players’ aggregate salaries for a season exceed their guaranteed share of revenues. In theory, the players’ Overage is returned to teams through the Escrow System
Partial Waiver Claim
A waiver claim made under the Partial Waivers provision, for less than the full remaining value of the waived player’s contract
Partial Waivers
A form of waivers available only in conjunction with Fitness to Play Panels, in which a waiver claim may be for less than the full remaining value of the waived player’s contract
Pay Schedule
The dates on which the player is paid. The standard pay schedule is 24 semi monthly paydays beginning November 15
Performance Bonuses
Incentive Compensation that compensates the player when a specified individual or team threshold has been met
Pick Deferment
A trade consideration that gives a team the option to defer the conveyance of a specific draft pick to the following draft. This differs from a Protected Pick in that the team (and not the eventual position of the pick) determines whether to defer the conveyance
Pick Protection
An optional provision in a trade involving a future draft pick, in which the pick is not conveyed if it falls within a defined range
Player Option
A contract provision providing the player with the ability to extend his contract for 1 additional season
Players’ Revenue Guarantee
The collective amount the players are guaranteed to receive in salaries and benefits in a given season
Poison Pill Provision
A rule altering the Salary in Trade (for the receiving team only) for players who have signed a rookie extension, during the season before the extension takes effect. If such a player is traded, his incoming Salary in Trade is the average of his salaries in the current season and the entire extension
Principal Terms
Terms in an offer sheet which the prior team must match when exercising its Right of First Refusal. Principal Terms include years, options, compensation, signing bonuses, deferred compensation, certain incentive compensation (incentives that are “likely” for both teams, or based on generally recognized league honors), and allowable amendments including guarantees and trade bonuses
Prior Injury Exclusion
Including Exhibit 3 in a contract, which limits or eliminates a player’s compensation protection if he is injured as a direct result of playing or practicing with his team.
If it is a re-injury of a specific injury or aggravation of a specific condition described in the Exhibit
Pro-rate
When something changes value as a factor of time. NBA exceptions, pro-rate, or lose value over time, when they are unused
Prohibited Activities
The list of activities (that are considered dangerous) in which the player cannot participate without the team’s prior written consent
Projected Benefits
The league’s current best estimate of the players’ employment benefits that will be paid in the upcoming season
Projected BRI (aka Projected Revenues)
The league’s current best estimate for what the revenues in the upcoming season are going to be
Protected Pick
A trade consideration that defers or eliminates the conveyance of a specific draft pick based on its eventual position in the draft
For example: a pick that is protected 1-10 is only conveyed if the team ends up with the 11th through 30th pick.
This defers from Pick Deferment in that the position of the pick (and not a decision by the team) determines whether the pick is conveyed
Qualifying Offer
A pro forma contract offer made to a team’s free agent in order to secure its right of first refusal, making the player a restricted free agent
Qualifying Veteran Free Agent
The term used in the CBA for a player with full Bird rights (at least 3 seasons on his Bird Clock)
Random Testing
A category of substance abuse testing in which every player is subject to testing up to 4 times during a season and up to twice during the offseason, at random times
Reacquisition Rule
A team cannot acquire a player it traded away for the remainder of that salary cap year, unless that player was first waived by another team
Reasonable Cause Testing
A category of Substance Abuse testing in which testing can be ordered when the league or players association provides an appointed expert with information about a player’s use, possession or distribution of prohibited substances, or under other specified circumstances
Reinstatement
When a player who previously was Disqualified applies for and is granted the opportunity to return to the league
Renegotiation
When the team and player mutually agree to amend an existing contract to change the salaries
Renounce
When a team gives up a right, removing the corresponding cap hold and reclaiming the resulting cap room. Free agents, exceptions and first round draft picks can be renounced
Repeater Tax
A higher tax rate ($1.00 over the standard rate in each band) paid by taxpaying teams that also were taxpayers in at least 3 of the 4 preceding seasons
Required Tender
An initial contract offer made to a draft pick, which is required for the team to retain its draft rights to the player.
A required tender is a Rookie Scale Contract for a 1st round pick, and a 1 year contract at the minimum salary
Restricted Free Agent
A player who is subject to restricted free agency. After signing an offer sheet with a new team, a restricted free agent’s prior team may match the Offer Sheet and retain the player
Revenue Forecast
BRI projections made when the CBA was negotiated
Revenue Sharing
A system whereby teams with higher revenue (typically in bigger markets) share a portion of their revenue with lower revenue teams (typically in smaller markets)
Right of First Refusal
The right held by the prior team of a Restricted Free Agent to match an offer sheet and prevent the player from changing teams as a free agent. A team secures its Right of First Refusal by submitting a Qualifying Offer
Rookie Exception
A salary cap exception that allows a team to sign its draft pick to a Rookie Scale Contract while over the salary cap
Rookie Extension
An amendment to a Rookie Scale Contract, executed by October 31 of the player’s 4th season, adding additional seasons. The salaries in a rookie extension are fully negotiable, as the player is no longer bound to the Rookie Scale
Rookie Free Agent
An undrafted rookie, who is free to sign with any team
Rookie Scale
Pre-set scale salary amounts for rookie scale contracts, based on the year the player is signed and his draft position, covering the 4 seasons of the player’s rookie scale contract and his restricted free agent qualifying offer
Rookie Scale Contract
The initial contract signed by first round draft picks. Rookie scale contracts are 4 seasons, with team options for season 3 & 4
Room Mid Level Exception
A version of the Mid Level Exception allowing teams to sign players for up to 2 years, with a lower starting salary than provided by the Taxpayer or Non Taxpayer Mid Level Exceptions ($4.767 million in 2019-20).
This exception is available to Room teams, or teams that had been Room teams earlier in the scale Salary Cap year
Room Team
A team operating with cap space. If a team’s Team Salary is low enough that it remains below the salary cap following a transaction, it is operating as a Cap Team, and does not need to use an Exception for the transaction
Salary Cap
A dollar amount representing a spending limit for teams.
In a Soft Cap system such as the NBA’s, teams cannot conduct transactions that leave them over the salary cap unless they are using and exception
Salary Cap Year
The full calendar year associated with an NBA season, running from July 1 through June 30
Salary in Trade
The salary that is used to compute whether a trade is legal per the Traded Player Exception.
The Salary in Trade is usually - but not always - the player’s actual salary (Base Year Compensation & Poison Pill Provision)
Set Off
A provision that allows a team to reduce the remaining compensation it owes to a waived player if that player signs elsewhere
Seven Year Rule
Future draft picks can only be traded 7 drafts in advance
Sign and Trade
A transaction in which a team re-signs its free agent for the purpose of a trade to a specific team. The trade to the specific team must be completed within 48 hours of the signing.
A sign and trade is conducted using Exhibit 8 of the UPC
Signing Bonus
Money paid to the player when a contract or extension is executed
Simultaneous Trade
A trade that completes all at once (as opposed to a Non-Simultaneous Trade). Any trade in which salaries are Aggregated, or in which any traded player returns more than his outgoing salary plus $100,000 must be a Simultaneous Trade
Soft Cap
A salary cap that permits teams to exceed the cap under certain, defined conditions. The NBA’s salary cap system utilizes a Soft Cap
Starter Crieteria
A performance threshold used to determine whether a player receives a higher or lower Qualifying Offer than what is indicated in the rookie scale for his draft position.
A lower draft pick who meets the Starter Criteria may receive a higher Qualifying Offer, and a higher draft pick who does not meet the Starter Criteria may receiver a lower Qualifying Offer.
Stretch Provision
The rule dictating the payment schedule for remaining guaranteed salary when a player is waived. In addition to the automatic stretch of the player’s remaining salary payments, the team may elect to stretch (or not stretch) the resulting Team Salary amounts
Substance Abuse Program
The program intended to promote player health and safety and prevent gaining an unfair advantage through chemical means, by providing Random Testing and Reasonable Cause Testing for drugs of abuse, along with penalties and treatment programs for players who test positive.
Summer Contract
A non-guaranteed contract with no salary earned or paid prior to the start of the regular season. A Summer Contract for a veteran who last played for that team must be for one year at the minimum salary. Summer Contracts do not count against team salary unless and until the player makes the team’s regular season roster
Supermax
Another name for a Designated Veteran contract or extension that provides the maximum years, salaries, and raises
Swap Rights
Trading another team the right to swap its future draft pick with your pick in the same draft
Tampering
Any intent to entice a player who is under contract (or whose rights are held by) another team relating to the player’s playing services, or any interference with the employer - employee relationship of another team and one of its players
Taxpayer Mid Level Exception
A version of the Mid Level Exception allowing teams to sign players for up to 3 years, with a lower starting salary than provided by the Non-Taxpayer Mid Level Exception ($5.718 million in 2019-20).
This exception is available to teams who are above the Apron
Team Option
A contract provision providing the team with the ability to extend a player’s contract for one additional season
Team Salary
The team’s position relative to the salary cap. Team Salary includes base salaries for all active contracts, “likely” bonuses, portions of signing & trade bonuses, guaranteed salary for waived players, and various cap holds
Ted Stepien Rule
Teams cannot make draft pick trades that leave them without a 1st round pick in any consecutive future drafts.
This rule applies only to future drafts, so the picks in any previous drafts are not considered for this rule
10 Day Contract
A temporary contract lasting 10 days, or 3 games, whichever is longer
Touch Rule
One of the rules used to determine if a proposed trade is legal. This rule is not in the CBA , and it applies to all trades - not just trades using the Traded Player exception.
In a trade involving 3 or more teams, each participating team must convey (or receive) assets with at least 2 other teams in the trade
Trade Bonus
A contract provision that provides the player with a bonus payment in the event of a trade. Also known as a “trade kicker”
Trade Call
A conference call between the league and all teams involved in a trade, to review all details of the proposed trade, along with each team’s responsibilities following the trade
Trade Deadline
The second Thursday before the All-Star game (10 days before All Star Sunday).
After 3pm EST on that date, teams are not permitted to make trades until their season ends
Trade Exception
The informal term used to describe a team’s ability to absorb additional incoming players for 1 year following a Non-Simultaneous Trade.
Not to be confused with Traded Player Exception
Trade Payment (Trade Kicker)
A payment made to a player if he is traded (with the exception of the initial trade in a Sign and Trade transaction).
A trade payment is specified using Exhibit 4 of the UPC, and is payable only once
Traded Player Exception
A salary cap exception, described in Article VII, Section 6, enabling teams to make trades that leave the team over the salary cap, but imposing limitations on the amount of incoming salary that can be received.
Not to be confused with Trade Exception
Two Way Contract
A hybrid between an NBA player and a G-League player. A two-way player may spend up to 45 days with his NBA club, and his salary depends on which league he is with on a given day
Two Way Conversion
The exercise of the team’s right (as defined in Exhibit 10 of the UPC) to convert a standard contract to a Two Way contract
Two Way Player
A player signed by an NBA team (not the G-League) to a contract containing Exhibit 10.
A G-League player splits time between the NBA team and its G-League affiliate
Un-Renounce
Reversing an renouncement and reclaiming the player’s Bird rights. This is allowed only when the renouncement created cap room to provide an offer sheet to another team’s restricted free agent, that player signs the offer sheet, and the player’s former team exercises its right of first refusal and retains the player
Undisclosed Agreement
Any understanding such as promises of future contracts or contract terms, side compensation, etc. that are not contained in a Uniform Player Contract (UPC)
Uniform Player Contract (UPC)
The standard contract retaining the player’s services as a professional basketball player
Unlikely Bonus Loophole
Loophole whereby teams sign multiple players with substantial unlikely bonuses that in the aggregate, become likely in reality while remaining unlikely per the letter of the rule. This loophole is closed by the rule adding in unlikely bonuses for all players signed that season when determining whether the team has enough cap room to sign an additional player
Unrestricted Free Agent
A free agent who is able to sign with any team, leaving his prior team with no recourse
Verbal Agreement
Any agreement between a team and player on the terms of a new contract, before the team and player sign a UPC. Verbal Agreements (when discovered by the league) count as Team Salary, the same as signed contracts
Veteran Extension
An amendment to an existing contract (other than a Rookie Scale Contract), executed before the contract ends, adding additional seasons to the contract
Veteran Free Agent Exception (“Bird Exception”)
An Exception that lets a team exceed the cap to re-sign its own free agents (also known as the Bird Exception). This exception ramps up over 3 years - the longer a player is with his team, the more the team can spend on the player with this exception
Waiver Claim
When a team acquires the contract of a waived player within 48 hours.
If multiple teams claim the same player, the claim is awarded on the basis of the team’s records
Waiver Period
The time in which a player is “on waivers”, during which other teams can make a Waiver Claim. The Waiver Period is 48 hours, including weekends and holidays
Waiver Request
Commonly referred to as “waiving” a player. When a team intends to terminate a player’s contract, it makes a waiver request to the remaining teams. Other teams are given 48 hours to respond by filing a Waiver Claim. If there is no Waiver Claim within 48 hours, the player’s contract is terminated and the player becomes a free agent
Waivers
A temporary status for players a team intends to release. Players stay on waivers for 48 hours or until their contracts are claimed by another team, whichever comes first. A player who is unclaimed for 48 hours “clears waivers” and becomes an unrestricted free agent
Zydrunas Ilgauskas Rule
If a player is traded and waived by the receiving team, he cannot re-sign with or be re-acquired by the trading team for 1 year, or until the waived contract would have ended, whichever is sooner
