When can NBA players extend their contracts, and for how much? As with most questions about the league’s Collective Bargaining Agreement, the answer is “it depends.”

Is the player a first-round pick coming off their first contract? How long was the initial agreement? How many years are left on the deal? Did the player recently win an award like Most Valuable Player (MVP) or Defensive Player of the Year (DPOY)? Were they named to one of the All-NBA Teams? Was he recently traded?

Each of these factors determines an extension’s timing, amount and length. Like most transactions, extensions cannot be signed during the league’s annual moratorium (July 1-5).

Rookie-Scale Extensions

First-round picks go by their own rules, entering the league on four-year rookie-scale contracts. Before the start of the final regular season (this year from July 6 to October 17), they can sign extensions for up to four or five additional years.

Teams can only have two players signed to five-year “designated” rookie-scale extensions. Because the Cleveland Cavaliers have Donovan Mitchell and Darius Garland on designated rookie-scale extensions, the franchise won’t be able to offer a longer deal to Evan Mobley ahead of the 2024-25 season.

Rookie-scale extensions are one of the few cases where the amount doesn’t need to be itemized in the contract itself. If the deal specifies “maximum,” the amount of the player’s contract will be set at 25 percent of the salary cap when announced ahead of July free agency.

If the player earned MVP in any of the three years before the extension starts, he could earn up to 30 percent of the cap. The criteria for the higher figure can be met by DPOY or All-NBA in the most recent season (or in two of the three previous seasons). Garland may earn 30 percent, provided he receives any of the listed awards.

LaMelo Ball, the No. 3 selection in 2020, can’t extend with the Charlotte Hornets until July 6, 2023, with a deadline before the first day before the start of the 2023-24 season.

The following list details the 2019 draft class and the summer of rookie-scale extensions. Outside of that brief offseason window before their fourth year, no players on rookie-scale contracts are extension-eligible.

What Is Needed for a Veteran to Extend?

Only some deals can be extended. A standard contract (non-rookie-scale) can only be extended if it is for at least three years in length. For instance, the Los Angeles Lakers cannot extend Lonnie Walker IV (one-year deal) and Austin Reaves (two years).

Some teams go out of their way to sign players to longer deals to create the opportunity for an extension. The Cleveland Cavaliers gave Dean Wade a four-year deal in 2019, then extended him for three additional seasons in September.

Eligibility starts on the second signing anniversary of a three or four-year contract or the third signing anniversary of a five or six-year deal.

LeBron James signed for two additional years in 2020. Because the pre-extension seasons (2020-21 in James’ case) count as part of the extension, he technically extended for three seasons. The second anniversary (adjusted for the pandemic) was August 10. Soon after (August 18), he extended for two more years, which will also count as a three-year extension.

In most cases, players can add up to four additional seasons in an extension. James was limited to two because of the Over-38 Rule. A designated veteran extension can be longer and has similar criteria as the higher rookie-scale extension (based on MVP, DPOY and All-NBA awards, similar offseason signing restriction) but with a few additional stipulations. Both the Over-38 and the designated veteran rules will be covered at a later date.

Any players with more than one year remaining need to extend before the start of the season. Domantas Sabonis of the Sacramento Kings, under contract through 2023-24, did not extend while eligible and will have to wait until July 6.

Draymond Green of the Golden State Warriors missed the deadline, but since he has a player option for 2023-24, he can still extend. He would have to remove the option year as part of a deal, but his starting salary cannot drop below the option amount ($27.6 million).

Players in their final season can extend on the last day of the year (June 30). Gary Harris (Orlando Magic), Taurean Prince (Minnesota Timberwolves) and Thaddeus Young (Toronto Raptors) signed extensions in late June, just before their contracts expired.

 

How Much?

A veteran extension is limited to 120 percent of the player’s previous salary. For example, Julius Randle extended with the New York Knicks in 2021, increasing his salary of $21.8 million to the maximum allowed at $26.1 million.

Some players prefer to wait until free agency when that 120-percent limit is no longer in effect. Myles Turner may not want an extension this season with the Indiana Pacers (or another team, if traded) if he believes he can get a salary greater than the $21.6 million extension limit.

That the Pacers are limited to $21.6 million on June 30 but can pay up to $40.2 million a week later (on July 6) when he’s a free agent but also a flight risk is arguably a flaw in the rule.

A designated veteran can sign for the “maximum,” which will be determined once the next salary cap is announced.

Players on smaller contracts can earn up to 120 percent of the estimated average player salary, which is announced each season by the NBA in July. Daniel Gafford is making $1.9 million this season with the Washington Wizards, but his salary will jump to $12.4 million via his 2021 extension.

Extend-And-Trade Restriction

A team can extend a player in conjunction with a trade, but that’s limited to two additional seasons with a five percent raise in both starting salary and year-to-year. If a player extends with a team for anything above, they cannot be traded for six months.

Similarly, if a player was recently traded, they are limited to that lower extension criteria for six months. Bojan Bogdanovic was sent from the Utah Jazz to the Detroit Pistons. Soon after, he extended for two years within the five percent limit (and remains trade eligible).

Email Eric Pincus at eric.pincus@gmail.com and follow him on Twitter @EricPincus.