From Larry Coon's page:
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24. What is the Designated Player rule? What are the performance criteria for earning a higher maximum salary?
Certain players can receive contracts or extensions that are more favorable (in years and/or salary) than they ordinarily could receive. This applies to players who are finishing their rookie scale contracts (and other players with four years of experience), who can receive a starting salary up to 30% of the cap (which is normally reserved for players with 7-9 years of service). It also applies to players who are finishing their rookie scale extensions (and other players with eight or nine years of experience), who can receive a starting salary up to 35% of the cap (which is normally reserved for players with at least 10 years of service).
In addition, players signing a rookie scale extension can be designated by their team to receive a longer extension, totaling six seasons (including the season remaining on their rookie scale contracts).
In order to qualify for the higher maximum salary, players must meet certain performance criteria1. At least one of the following must be true:
The player was named to the All-NBA First, Second or Third team in the most recent season, or both of the two seasons that preceded the most recent season.
The player was named the Defensive Player of the Year in the most recent season, or both of the two seasons that preceded the most recent season.
The player was named the NBA Most Valuable Player in any of the three most recent seasons.
For example, if this is the 2018 offseason, then a player meets the performance criteria if he accomplishes any of the following:
Named to the All-NBA First, Second or Third team in 2017-18
Named to the All-NBA First, Second or Third team in both 2015-16 and 2016-17
Named the Defensive Player of the Year in 2017-18
Named the Defensive Player of the Year in both 2015-16 and 2016-17
Named the NBA Most Valuable Player in 2015-16, 2016-17 or 2017-18
The naming of these rules and criteria are somewhat inconsistent and confusing. The Designated Veteran rule allows teams to sign or extend players with eight or nine years of service to a higher salary (up to 35% of the cap). The Designated Rookie rule allows teams to sign players finishing their rookie scale contracts to longer extensions, but does not provide for the higher maximum salary (up to 30% of the cap). In fact, there are no performance criteria the player must meet to qualify for the Designated Rookie rule -- he just needs to be designated by his team to receive a longer extension. The higher maximum salary for these players is provided by the 5th Year, 30% Max criteria. And while the criteria are the same for players with eight or nine years of experience to qualify for the higher maximum salary (up to 35% of the cap), the CBA calls it the "Designated Veteran Player 35% Max Criteria" for these players.
A player's eligibility for a higher maximum salary doesn't imply he will actually receive that amount -- as with all contracts, the actual salary is a matter of negotiation between the player (or his agent) and his team. However, a Designated Rookie must receive at least 25% of the cap. In addition, for players entering their fifth season the exact percentage of the cap can be based on how the player meets the 5th Year, 30% Max criteria. For example, a rookie scale extension can specify that the player will receive 27% of the cap if he meets the criteria by being named to the All NBA Second Team, 28% if he meets the criteria by being named to the All NBA First Team, or 30% if he meets the criteria by being named Most Valuable Player.
There is a limit to the number of designated players a team can have on its roster at a time. A team can have up to two designated rookies (who received a longer rookie scale extension) and up to two designated veterans (who received higher than the 30% maximum salary) at any time.2 However, only one designated rookie and one designated veteran may have been acquired from another team in a trade.
A designated veteran extension can only be signed from the end of the July Moratorium through the last day before the start of the regular season. A player who signs a designated veteran contract or extension can't be traded for one year after he is signed.
In summary, the kinds of contracts and extensions that can be signed using the Designated Player rule and the 5th Year, 30% Max Criteria are as follows:
Type Qualifications Maximum Salary Maximum Years
Designated Rookie Extension Entering 4th season of Rookie Scale Contract; designated by team 25% of cap (30% if meets 5th Year 30% Max Criteria) 6 (including remaining year on current contract)
Free Agent Contract after Rookie Scale Contract Finished Rookie Scale Contract, or 2nd round pick or undrafted player with 4 years of service; designated by team 25% of cap (30% if meets 5th Year 30% Max Criteria) 5
Designated Veteran Extension 7 or 8 years of service when extension signed; 1 or 2 years remaining on contract; with same team continuously (unless traded during first four years in the league); meets Designated Veteran Player 35% Max Criteria3 35% of cap 6 (including remaining years on current contract)
Designated Veteran Contract 8 or 9 years of service; with same team continuously (unless traded during first four years in the league); meets Designated Veteran Player 35% Max Criteria 35% of cap 5
Topic: Steve Kyler Twitter:Cs exploring scenarios (trades, draft) not including KI/AD (Read 22410 times)