The Vertical Front-Office Insider Bobby Marks, a former 20-year executive with the Nets, looks at the financial implications of the Designated Player Veteran Extension and the Designated Player Veteran Contract, and how they relate to players who earn All-NBA honors.
Part of the goal of the new collective bargaining agreement was to monetarily incentivize players to remain with their teams.
One of the new rules that will be introduced in July is the designated player veteran extension.
The DPVE rewards players with a six-year contract (including their current deal) who meet certain criteria with an extension that can reflect up to 35 percent of the salary cap.
The criteria for a player to become eligible:
• No change of teams unless it occurred during a player’s first four seasons.
• One or two seasons remaining on contract.
• Seven or eight years of service.
• Player must reach third anniversary of current contract.
• Meet one of these standards:
a. Named All-NBA or Defensive Player of the Year the preceding season or two seasons during the immediately preceding three seasons.
b. Named MVP during one of the preceding three seasons.
Here’s a look at players who are eligible for the DPVE (or designated player veteran contract in some cases) in the summer of 2017 and ’18, and the players who could become eligible next summer based off a strong 2017-18 season.
ELIGIBLE THIS SUMMER
Earning All-NBA this season had no bearing on Westbrook when it comes to the DPVE.
Though Westbrook agreed to a renegotiation last summer, the NBA grandfathered his eligibility.
An All-NBA player the previous two seasons, Westbrook became eligible once the new CBA was signed in January.
Westbrook is eligible this summer to sign a five-year, $207 million extension that begins in 2018-19 with a starting salary of $35.7 million.
Harden agreed to a renegotiation last summer and was also grandfathered into DPVE eligibility.
Harden cemented the criteria after earning All-NBA honors Thursday.
Because Harden is under contract for another two seasons, the most years he could add are four.
Harden can sign a four-year extension worth $168 million that begins in 2019-20 at a starting salary of $37.5 million.
Curry, a free agent this summer, is eligible for the designated player veteran Contract.
Curry met the criteria last year when he earned All-NBA honors and league MVP for a second consecutive season.
Curry can sign a five-year, $205 million contract with the Warriors at a starting salary of $35.4 million for 2017-18.
Curry would risk losing $75 million by entertaining offers from other teams.
All-NBA honors have Wall DPVE-eligible.
Wall, under contract for the next two seasons, is eligible to sign a four-year $168 million extension this summer.
The first year of the extension is worth $37.5 million and would start in 2019-20.
ELIGIBLE IN JULY 2018
All-NBA honors in consecutive seasons make Leonard eligible next summer.
Leonard will have to wait until then because he is one year short of reaching seven years of service.
Leonard, under contract with San Antonio through 2018-19 (player option in 2019-20), can sign a five-year extension next summer worth $217 million.
The first-year salary of $37.5 million would start in 2019-20.
STUCK IN LIMBO
Falling short of All-NBA honors puts George and the Pacers in a holding pattern.
Likely to opt out of his contract next summer, George would be eligible to sign the DPVC if he were to earn All-NBA honors in 2017-18.
However, to do so George would have to opt in to his contract or sign a new deal.
The total salary of a new contract would be $207 million with a starting salary of $35.7 million.
George would get a four-year, $132 million contract if he were to sign elsewhere or get traded during the season.
Hayward was a long shot to sign for the DPVE this summer had he earned All-NBA honors.
Hayward would have had to opt in to his $16.7 million contract for next year and then sign a five-year extension that starts in 2018-19.
Hayward can roll the dice, opt in to his contract and earn All-NBA next season and still become eligible.
However, that comes at a risk of long-term security.
Hayward will now likely opt out of his contract, making him eligible for a new contract starting at $30.3 million annually.
Griffin would have to opt in to his $21.3 million contract for 2017-18 and then earn All-NBA honors to become eligible for the DPVC.
Griffin, who will likely opt out this summer, could receive a max contract starting at $30.3 million annually.
WAIT UNTIL NEXT SUMMER
Earning All-NBA this season does not qualify Butler for the DPVE.
Butler, part of the 2011 draft class, is one year short of reaching seven years of service.
Butler will need to earn All-NBA honors in 2017-18 to become eligible next summer.
Butler would be eligible for a five-year, $217 million extension that would start in 2019-20.
Had Irving earned All-NBA this season, years of service would have prevented him from being DPVE eligible.
Irving also is one year short of service time.
If Irving earns All-NBA honors in 2017-18, he would be eligible to sign a five-year, $217 million extension that would start in 2019-20.
Thompson is also a year short of service time, despite earning All-NBA honors in two of the past three seasons.
If Thompson earns All-NBA honors in 2017-18, he would become eligible to sign a five-year, $217 million extension.
Something to note: Teams are permitted to have only two total DPVE or DPVC players. That will be relevant as the Warriors are expected to re-sign Curry this summer.
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