Module 2 Pt 1 Vocab

Question 1

5th Year, 30% Max Criteria

Answer 1

A threshold that allows a player to re-sin for up to 30% of the cap in a rookie extension.
A player qualifies by being named MVP (any of the last 3 seasons), All - NBA or DPOY (last season, or two of the last three seasons)

Question 1

Bird Rights

Answer 1

Designate a player’s ability to re-sign with his prior team using the Veteran Free Agent exception

Question 2

Clear Waivers

Answer 2

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 (UFA)

Question 3

Designated Rookie

Answer 3

A player who has been designated by his team to receive a longer (5 yr) rookie extension

Question 4

Designated Veteran

Answer 4

A player who has met the performance and tenure criteria to receive a more lucrative (up to the 10+ yr maximum) contract or extension starting in his 9th or 10th season

Question 5

Early Termination Option (ETO)

Answer 5

A contract provision allowing a player to terminate his contract and become a free agent, a year before it was scheduled to end

Question 6

Guarantee

Answer 6

Another name for Compensation Protection.
Salary the player is guaranteed to receive even if he is waived and his contract is terminated

Question 7

Maximum Salary

Answer 7

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)

Question 8

Minimum Salary

Answer 8

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

Question 9

Minimum Salary Scale

Answer 9

Pre-set salary amounts for all seasons of a minimum salary contract, based on the year the player signs and the player’s tenure

Question 10

One - Plus - One Contract

Answer 10

A contract configuration commonly signed by a player who wishes to maximize their flexibility:
1 Guaranteed year, plus 1 Player Option year
The second season functions primarily as an insurance policy

Question 11

Option

Answer 11

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)

Question 12

Player Option

Answer 12

A contract provision providing the player with the ability to extend his contract for 1 additional season

Question 13

Rookie Exception

Answer 13

A salary cap exception that allows a team to sign its draft pick to a Rookie Scale Contract while over the salary cap

Question 14

Rookie Extension

Answer 14

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

Question 15

Rookie Scale

Answer 15

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

Question 16

Rookie Scale Contract

Answer 16

The initial contract signed by First Round draft picks. Rookie scale contracts are 4 seasons, with team options for seasons 3 and 4

Question 17

Supermax

Answer 17

Another name for a Designated Veteran contract or extension that provides the maximum years, salaries and raises

Question 18

Team Option

Answer 18

A contract provision providing the team with the ability to extend a player’s contract for 1 additional season

Question 19

Trade Bonus

Answer 19

Also known as a “Trade Kicker”
A contract provision that provides the player with a bonus payment in the event of a trade.

Question 20

Unrestricted Free Agent

Answer 20

A free agent who is able to sign with any team, leaving his prior team with no recourse

Question 21

Waiver Claim

Answer 21

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 teams’ records

Question 22

Waivers

Answer 22

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