Module 2 Pt 1 Vocab Flashcards
5th Year, 30% Max Criteria
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)
Bird Rights
Designate a player’s ability to re-sign with his prior team using the Veteran Free Agent exception
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 (UFA)
Designated Rookie
A player who has been designated by his team to receive a longer (5 yr) rookie extension
Designated Veteran
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
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
Guarantee
Another name for Compensation Protection.
Salary the player is guaranteed to receive even if he is waived and his contract is terminated
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)
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
One - Plus - One Contract
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
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)
Player Option
A contract provision providing the player with the ability to extend his contract for 1 additional season
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 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 seasons 3 and 4
Supermax
Another name for a Designated Veteran contract or extension that provides the maximum years, salaries and raises
Team Option
A contract provision providing the team with the ability to extend a player’s contract for 1 additional season
Trade Bonus
Also known as a “Trade Kicker”
A contract provision that provides the player with a bonus payment in the event of a trade.
Unrestricted Free Agent
A free agent who is able to sign with any team, leaving his prior team with no recourse
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 teams’ records
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
