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90 Cards in this Set

  • Front
  • Back

Length of Rookie Scale Contract for first round picks


1. Has two guaranteed seasons.
2. Team options for 3rd and 4th seasons.
When and how can team exercise options for third and fourth seasons?

1. 3rd season can be exercised between last day of player's first season and October 31 of second season.
2. 4th season can be exercised between last day of player's second season and October 31 of third season.
3. Notice of exercising the option must be either personally delivered to the player or his representative or sent by pre-paid certified, registered, or overnight mail to the last known address of the player or his representative.
Which Rookie Scale applies to a player?

VIII(1)(b)(i) and Exhibit B to CBA.
It is determined by the first season to be covered by the Rookie Scale Contract, and what pick he was drafted. That same Rookie Scale continues to apply to the subsequent seasons of the Rookie Contract.

Note: Rookie Scale Amounts for each pick each year are attached as Exhibit B to the CBA.
Reduction of Rookie Scale Contract if player signs late

If a player signs after January 10 of his rookie season, his Rookie Scale Contract for that season is reduced by 1/(# of days in regular season) for each day he stays unsigned after January 10.

Note: This means even if a Rookie signs on the last day of the regular season, he could still get half of his salary for that year.
How is Rookie Scale affected if a team has to forfeit a first round pick?

1. Rookie scale remains the same for first 14 picks.
2. The missing picks are removed from the scale starting with the 15th pick, no matter what number pick is actually lost.

E.g.: if one First Round Pick (no matter what number) were forfeited in the first round of the 2012 Draft, the applicable Rookie Scale Amounts would remain unchanged for the first 14 picks, and the Rookie Scale Amounts applicable to the remaining 15 picks in the first round would be the Rookie Scale Amounts that would have been applicable to picks 16 through 30. If 2 picks are forfeited, then it's amounts that would have been applicable to picks 17-30, etc.
Limitations on amount of Rookie Scale Contracts

1. Contract must provide at least 80% of Rookie Scale Amount in Current Base Compensation.
2. Anything above that is subject to individual negotiation, but Salary plus Unlikely Bonuses may not exceed 120% of the Rookie Scale.
3. No signing bonuses are allowed, except for an "international player" payment (i.e., a buyout) in excess of the Excluded International Player Payment Amount, or a loan.

Note: In practice, almost all teams sign players to 120% of the Rookie Scale. A few teams have demanded players at the end of first round take lower amounts, including Bulls w/ Marquis Teague and the Thunder with Andre Roberson.
Guarantees in Rookie Scale Contract

1. First two years of contract are guaranteed to at least 80% of Rookie Scale Amount.
2. First and second year options must be guaranteed to 80% of Rookie Scale Amount, if exercised.
3. Team and player can negotiate additional compensation protection above this.
4. Whatever terms and conditions applying to the 4th year must be the same as those applying to the 3rd year, except for the applicable percentage increases under the Rookie Scale.
Limitation on Trade Bonuses in Rookie Scale Contracts

If a Rookie Scale Contract is traded and has a Trade Bonus that causes Salary plus Unlikely Bonuses to increase above 120% of the Rookie Amount, then the contract is amended to reduce the Trade Bonus as much as needed to keep the compensation under that limit.
Rookie Contracts for Later-Signed First Round Picks

If a first round pick has not signed after 3 seasons, he may be signed to a contract in excess of 120% of the Rookie Scale if:
1. the team has cap room or exceptions to allow that.
2. Contract is for at least 3 years, not including any option year.
3. Provides for Base Compensation greater than 120% of the applicable rookie scale amount in first year of the contract.

Note: Team can always just sign the player to a rookie scale deal.
Failure to provide Required Tender, withdrawal of Required Tender, or renouncement

If team fails to make a Required Tender, withdraws a Required Tender, or renounces the pick, the player becomes a Rookie Free Agent.
If first round pick refuses to sign with the team

VIII(3) and Article X
1. If he plays pro basketball outside the NBA, team retains his draft rights
2. If he sits out and doesn't play pro basketball at all, he is reentered into the draft the subsequent year.
3. If he again sits out the year and doesn't play, then he becomes a rookie free agent.

Note: This has never happened since Rookie Scale was implemented. Sitting out two whole years is not something anyone has ever been willing to risk.
General rule, maximum term length of contract

A contract may cover up to but no more than 4 seasons from the date such contract is signed. This means the maximum length of any extension is 3 years, because the current season counts as part of the 4 years.

Note: This includes any option years.
Exceptions to general rule of maximum term length of contract

1. Qualifying Veteran Free Agent and his prior team can enter into a 5 year extension after he has already become a free agent.
2. Extension of Rookie Scale Contract may cover 5 seasons, or 6 if player is Designated Player.

Note: For extensions, these figures INCLUDE THE REMAINING YEAR(S) OF THE ORIGINAL CONTRACT. So the actual maximum length of the rookie extension alone is 4 years, or 5 for a Designated Player. These are the amounts usually reported when discussing Rookie Extensions.
How does the current season count in computing extensions?

The current season counts as one of the seasons of the extended contract until June 30 of that season. This is why the maximum non-rookie extension is 3 years, because by definition an extension must occur before June 30 because it is before the contract expires.

Note: This is why we see so few non-rookie extensions now. If a player becomes a FA he can sign for up to 5 years, but limited to 3 if he signs an extension.
Draft as prerequisite to playing in NBA

Must have been eligible for selection in at least one draft.
Maximum number of drafts a player may be eligible for

Age limit for NBA draft

1. Player turns 19 in the calendar year the draft is held and;
2. If player is not an international player, at least one NBA season has elapsed since he graduated from high school (or his high school class graduated)

Note: International players only need to fulfill the age requirement.

Note: To be eligible, player must fulfill age requirement plus be eligible under one of the other criteria listed in the successive cards.
When is an amateur player automatically eligible for the NBA Draft?
1. When a player has graduated college, or 4 years have passed since the player graduated HS (or player's class graduated from high school) AND he either
2. Has no college eligibility remaining OR;
3. Did not enroll in college.

Note: This excludes D-league players, who are eligible after playing 1 year in the D-league.

Note: Player must also meet the age limit.
Definition of International Player for draft purposes

1. Player has maintained a permanent residence outside of the United States for at least the three (3) years prior to the Draft, while participating in the game of basketball as an amateur or as a professional outside of the United States, AND;
2. has never enrolled in a US college, AND
3. Did not complete high school in the US
Automatic eligibility of non-International Player professionals

Player is eligible if he has signed a player contract with a “professional basketball team not in the NBA”
(defined below) that is located anywhere in the
world, and has rendered services under such
contract prior to the January 1 immediately
preceding such Draft

Note: Player must also meet the age limit.

Note: This means that Americans who graduate (or would have graduated) from high school and play a year professionally (whether in the D-League or overseas) are automatically eligible.
Definition of "professional basketball team not in the NBA" for purposes of draft eligibility

Any team that pays money or compensation of any
kind – in excess of a stipend for living expenses – to a basketball player for rendering services.

Note: This includes the D-League
Automatic eligibility of International Players

Players who will be 22 during the calendar year of the draft are automatically eligible.
Declaring for the draft by non-automatically eligible players ("Early Entry" player)

X(b)(ii)(F), (G)(2)
If player would not automatically be eligible, he can declare for the draft by expressing that desire in a writing RECEIVED by the NBA at least 60 days prior.

Note: Player must also meet the age limit.
Note: Applies to international or non-international players.
Eligibility of International Players who have signed and rendered services for a team in the US

Are automatically eligible.

Note: Still must meet the age limit.
Summary: When is player automatically eligible?

1. Player has no remaining college eligibility.
2. Player didn't go to college and 4 years has passed since HS graduation.
3. Non-International Player who rendered services to non-NBA team prior to January 1 of draft year.
4. International Player who will turn 22 year of the draft.
5. International Player who rendered services to US non-NBA team.
Required timing of NBA Draft

Held prior to every season, by July 10 on date decided by commissioner.
Negotiating rights to draft rookies: Exclusive negotiating rights for drafting team

X(4)(a)(b-d) see also X(5)
If team offers a Required Tender (before July 15 for 1st rounders or in the 2 weeks before September 5 for 2nd rounders), then it is the only team that can negotiate with that player.

If the player doesn't sign for the whole year and doesn't play for another pro team, he is reentered into the draft the next year.

If he isn't drafted again, or is drafted and again sits out the next year, he is a Rookie Free Agent as of the date of the next draft.
Withdrawal of Required Tender

A team may withdraw a Required Tender if the player agrees in writing. If this happens, the player becomes a Rookie Free Agent.
Renouncing of draft rights

Team may do so at any time, unless it has already made a Required Tender and it is within the time the player has to accept it.

To renounce, team provides NBA with a written statement, which NBA must provide to PA within 3 business days.
Draft rights for players who have signed contracts with non-NBA teams

Drafting team retains player's rights for 1 year after the EARLIER of:
i. Date player notifies team he is available to sign a contract with the team or
ii. The date of the preceding draft if the player notifies the team of his availability between that draft and August 30.

Note: This essentially means that the team retains his draft rights for a year after the player's non-NBA contract ends.

Note: Player must actually be available to play that year AND in any future year, i.e. no contractual or legal impediment to doing so.

Note: Same applies if player signs a new contract with a non-NBA team.

Note: Second section would only apply as "earlier if player notifies team between the draft and August 30.
Required Tender for players who are coming off contracts with non-NBA Teams

If player notifies team he will be available for the upcoming season by July 1, team must make a Required Tender by September 10 or he becomes a Rookie Free Agent.
Form of notice that player coming off international contract is available to play in NBA

In writing by personal delivery or pre-paid certified, registered, or overnight mail sent to the Team’s principal address or principal office (as then listed in the NBA’s records), to the attention of the Team’s general manager and to the League Office. (attention: General Counsel).
If Early Entry drafted player does not sign with team

If the Early Entry does not play in college after being drafted, team retains the player's rights until one year following the draft the player would have been automatically eligible had he not declared early.

E.g. Team drafts a freshman, then they have his draft rights for the next 4 years even if he doesn't play.

Note: This also applies if a player were to get drafted and then go back and play in college, although this is not currently possible unless NCAA changes its rules.

Note: If Early Entry player signs with non-NBA team, it cannot operate to shorten this timeline.
Trading of draft rights

Is allowed, and the acquiring team has the same rights to the player as the drafting team.
Withdrawal of Early Entry Players

Player can withdraw by providing written notice that is RECEIVED by the NBA 10 days prior to the draft. But a player can only withdraw once.

NCAA only lets player withdraw once. NBA lets player withdraw twice.
Procedure if player contends Required Tender does not meet criteria

1. Player must send written notice to team (cc to NBA and PA) within 10 days after PA receives the Required Tender contract.
2. Notice has to specify what is deficient about the Tender.
3. If player is correct, team has 5 business days to offer an amended Required Tender that meets the criteria.
What benefits does unrestricted free agency confer?

1. Unrestricted Free Agent can negotiate with any team on first day of Moratorium Period, and may enter into contract with any team after the Moratorium Period.
2. Restricted Free Agent can do the same with respect to an Offer Sheet.
3. No compensation obligation to Prior Team is applicable to any Free Agent.
4. Prior Team only has Right of First Refusal for a Restricted Free Agent (RFA)
Requirements for Qualifying Offer

1. Is for 1 year.
2. Base Compensation is 100% guaranteed.
3. 100% of Base Compensation is to be paid in 24 bi-monthly installments starting on Nov. 15 (default under player contract)
4. Calls for a salary specified by the CBA (see card below)
Delivery of Qualifying Offer

Is either personally delivered to the player or his
representative or sent by pre-paid certified, registered,
or overnight mail to the last known address of the
player or his representative.
General amount of Qualifying Offer for first round pick finishing Rookie Scale Contract

1. Salary increases by the amount called for in the Rookie Scale (see CBA Exhibit B)

But see exceptions below
Starter Criteria (with respect to qualifying offers)

1) Player averaged 2,000 minutes or 41 games started over previous 2 seasons; OR
2) Player logged 2,000 minutes or 41 games started the previous year.
Amount of Qualifying Offer for first round pick drafted outside top 9 who meets Starter Criteria

A first round pick selected outside the top 9 qualifies for the Qualifying Offer due the #9 pick in the draft (based on 120% of the 9th pick's 4th year Rookie Scale salary) if:
1. During 3rd and 4th seasons he either started an average of 41 games per season or averaged 2,000 minutes, OR;
2. During 4th season he started 41 games or played 2,000 minutes.
Amount of Qualifying Offer for first round pick drafted in top 14 who does not meet Starter Criteria

Qualifying offer is the LESSER of:
x) Increase in 4th year Salary, Likely Bonuses, and Unlikely Bonuses by percentage called for in Rookie Scale OR
y) Base Compensation with no bonuses of any kind called for by the Qualifying Offer for the 15th pick (at 120% of rookie scale amount)
Amount of Qualifying Offer for non-first round pick who does not meet Starter Criteria or is coming off rookie season

Salary, Likely Bonuses, and Unlikely Bonuses shall be GREATER of:
W) 125% of those provided in last year of prior contract; OR
X) Minimum salary plus $200,000
Amount of Qualifying Offer for non-first round pick who is coming off 2nd or 3rd season and meets Starter Criteria

Qualifying Offer is the larger of the standard qualifying offer (125% of previous salary) or the QO for the 21st pick for the draft class whose rookie scale contract is now finishing

The amount is determined by taking 100% of that pick's scale amount for the third season, adding the percentage raise for the fourth season specified in the salary scale, and then adding the percentage raise for the qualifying offer specified in the salary scale.

Additional terms and conditions of Qualifying Offer compared to previous contract

Must be unchanged from those applied to last year of player's prior contract, aside from including an Exhibit 6.
No Individually-Negotiated Right of First Refusal

No unique (i.e., unless it's applicable to all NBA players in the same situation) ROFR provisions are allowed, including any with non-NBA teams.
Effect of holdout on free agent status

Player who holds out for more than 30 days at the start of the last season of his contract (even if he later reports) is deemed not to have completed his contract, and is not allowed to negotiate with any other team unless his prior team agrees.

Note: This and the fact that most NBA contracts are guaranteed is a big reason why we never see players hold out for new deals in the NBA.
Using the Qualifying Offer to make players finishing 4th year of Rookie Contract RFAs

1. Team may make QO to player between end of 4th season and June 30.
2. If they do so, then player becomes RFA as of July 1.
3. If no qualifying offer made, then player is UFA as of July 1.
4. If team did not exercise 3rd or 4th year option on Rookie Contract, then player is UFA after his 2nd or 3rd season, respectively.
Maximum Qualifying Offer

In addition to QQ, team may offer Maximum Qualifying Offer to a player coming off a Rookie Scale contract (meaning he had to be a first-rounder). This forces any Offer Sheet to be for at least 3 years instead of 2. Criteria of Maximum Qualifying Offer are:
1. Max contract with no bonuses of any kind.
2. Be 5 years
3. Have 7.5% annual raises.
4. Be fully guaranteed.
5. Cannot contain any option years.
6. Cannot be withdrawn unless regular QO is also withdrawn.

Note: I don't recall a Maximum Qualifying Offer being offered yet and it doesn't make much sense--if team has let the player get to RFA then might as well let him get an offer sheet and match because they will get him for much cheaper than the Maximum Qualifying Offer.

Edit: for summer of 2015 Max QO becomes more realistic to force players to sign longer offer sheets.

RFA for non-first round picks

Any Free Agent who has 3 or fewer years of service can be made a RFA if prior team makes him a QO. Otherwise he is an UFA.

Note: Does not include first round pick whose 3rd or 4th year options were not exercised.
Time for acceptance of QO

A player must be given until October 1 to accept a QO, unless it is withdrawn (see next card). The team may extend this until March 1 if it desires. Note a player may still sign with another team up until March 1, regardless of whether QO extended or not.

Note: Notice of extending past October 1 must be either personally delivered to the player or his representative or sent by pre-paid certified, registered, or overnight mail
Withdrawal of QO


1. Team may unilaterally withdraw QO until July 23. This makes player UFA, but team retains Bird rights and his cap hold stays unless renounced.
2. Team needs player's permission to withdraw on July 24 or after. If this happens, team is deemed to have renounced player's rights, so there is no cap hold but team cannot use Bird rights to re-sign.

Prohibition on player accepting QO if he knows he is physically unable to play

Player cannot accept QO if he's unable to play, unless he discloses it and the team consents to his accepting it. Even if he's unable to play, the ROFR continues.
If Qualifying Offer is neither withdrawn or accepted

XI(4)(c)(ii), XI(5)(a)

Team's ROFR continues until player accepts the qualifying offer (prior to March 1 of the season if extended) or signs a new contract with the ROFR team. If player does neither, team can submit a new identical QO on or before the next June 30, and the whole cycle repeats again.

Procedure if player contends QO or Max QO doesn't meet the criteria


1. Player must make claim in writing to team within 10 days after copy is given to PA.
2. Notice must set forth specific deficiencies in the Offer.
3. If the player is right and changes are needed, team has 5 business days to offer an amended Qualifying Offer that is proper.

Note: This is identical to if player claims Required Tender is inadequate.

Procedure when RFA accepts Offer Sheet from another team


Player must give ROFR team a certificate substantially similar to Exhibit G (i.e. the Offer Sheet), signed by player and new team, attaching a UPC specifying:
i. Principal Terms (see card below) that ROFR team must match and
ii. Any non-Principal Terms that ROFR team isn't required to match.

Length of Offer Sheet

Must be at least 2 years, or 3 if player has received a Maximum Qualifying Offer.

Note: Does not include any option year.
Cap Room required to extend Offer Sheet

New team must have Room (in form of cap room or an exception) at the time the Offer Sheet is signed and at all times while it is outstanding.

Cap Room required to match Offer Sheet


To match Offer Sheet, ROFR team must have Room for the player’s Player Contract at the time notice of the Team’s exercise of its Right of First Refusal is given and must continue to have Room at all times the First Refusal Exercise Notice remains in effect.

Note: This is only an issue if the player is not a Qualifying Veteran Free Agent (most commonly if player only has 1-2 years of service), otherwise the contract can be matched with full Bird rights.

Rules for Offer Sheets to RFAs with 1 or 2 years of service

No such offer sheet can provide for Salary plus Bonuses in the first year for more than the MLE. Only 4.5% annual raises or decreases are allowed, unless the contract provides for the maximum possible amount in first 2 years (see next card)
Maximum possible Offer Sheets to RFAs with 1 or 2 years of service

If Offer Sheet provides for maximum possible Salary in first 2 years (i.e., starting with MLE and then 4.5% raise in year 2), then Offer Sheet may provide for up to the Max salary permitted in year 3. Year 4 maximum annual increase or decrease is 4.5% from year 3.

Max Offer Sheet must be 100% guaranteed and have no bonuses of any kind.

Note: Max salary in year 3 is calculated by determining what Max would have been in years 1 and 2 (were it not limited to MLE + 4.5%) and then doing 4.5% raise from year 2.
Cap Room required (and cap hit) for Max Offer Sheet to 1 or 2 year service RFA

Team needs room for the AVERAGE of the salary over the whole life of the contract in the first cap year.

Cap hit for each year is calculated using this average if player accepts the offer and it is not matched. This also applies if player is later traded.

Note: The actual dollars paid to the player are not averaged, just the cap hit. So for first two years, cap hit is much larger than the actual payment to the player, and last year (or two) payment is much larger.
Cap hit from matching Max Offer Sheet to 1 or 2 year service RFA

Is equal to the amount actually paid to player. 1st year = MLE. 2nd year = First year + 4.5%. 3rd year: What his salary would have been had he gotten the max his first year, then gotten maximum 4.5% raises the next 2 years, i.e. 1st year max x 109%. 4th year = 1st year x 113.5% (if applicable). These cap hits also apply if player is later traded.

Note: This was instituted to allow a team to match using Early Bird rights, but it also creates a "poison" pill of huge annual salaries after the second year of the deal. This was a big reason the Bulls and Knicks did not match Rockets' Offer Sheets on Omer Asik and Jeremy Lin in 2012.
Principal Terms of Offer Sheet

These are the only terms that must be matched. They include:

1. Length of contract
2. Compensation that will be paid or lent as signing bonus, Current Base Compensation, and/or Deferred Base Compensation and the specific dates of payment.
3. Likely Bonuses based on team performance or Generally Recognized League Honors
4. Any allowable amendments, such as contract guarantee, trade bonus, etc.
Matching the RFA Offer Sheet

1. ROFR team has 3 days from day it RECEIVES the Offer Sheet to match.
2. Matching occurs by giving the RFA a "First Refusal Exercise Notice," Exhibit H to CBA.
3. RFA and ROFR team have now entered into a contract containing all of the Principal Terms of the Offer Sheet (but no other terms).
Restrictions once Offer Sheet is matched

XI(5)(e, g)
1. Contract may not be amended for 1 year.
2. Player can't be traded for 1 year without his consent.
3. Even with player's consent, player cannot be traded (by any team) to the team whose Offer Sheet was matched.
Passing a physical for RFAs

XI(5)(e, h)
1. Offer Sheet may contain an Exhibit 6.
2. If ROFR team matches, then Exhibit 6 is deleted, but a team may condition its matching on passing a physical within 2 days.
3. Player must be truthful as part of the physical.
4. If player fails, ROFR team may withdraw its match within 2 days after the physical
5. If match is withdrawn, then contract is effective with the New Team (which may also have its own Exhibit 6, however)
If player does not submit to physical with ROFR team within 2 days

1. Conditional match remains in effect until player reports for the physical.
2. However, team may withdraw its conditional match, which INVALIDATES the new team's Offer Sheet. Offer Sheet is also invalid automatically if player does not submit to physical by March 1.
3. New team is prohibited from signing or acquiring the player for one year.

Note: This is intentionally punitive to prevent the player from trying to play games with the physical so the ROFR team won't match.
Refusal to match RFA offer

If ROFR team does not match within 3 days of RECEIVING the offer, or provides written notice that it won't match beforehand, then the Offer Sheet becomes the player's new contract. It cannot be amended for 1 year.

Note: Offer Sheet can still contain an Exhibit 6.
Prohibition of exercising ROFR as part of sign and trade after Offer Sheet signed

XI(5)(i, o)
This is not allowed. However there is a way around it, because the ROFR team can just sign and trade the player outright as a free agent if he makes it known he intends to sign an Offer Sheet. It just can't be done once the Offer Sheet is actually signed.

Note: This is what the Kings and Pelicans did with Tyreke Evans in 2013. The idea of this rule (see XI(5)(o)) seems to be to prevent the New Team from paying off the ROFR team with trade assets, but this mechanism provides a way around it. This can probably be done unless someone screws up and specifically says assets are being included to induce the New Team to either give or not give the Offer Sheet.
Only one Offer Sheet at a time

Only one Offer Sheet may be outstanding at any one time, although it must be signed by a team to be effective.
Revoking of Offer Sheet

An Offer Sheet, both before and after it is given to the ROFR Team, may be revoked or withdrawn only upon the written consent of the ROFR Team, the New Team, and the Restricted Free Agent.
Relinquishing ROFR

May be done at any time unless it's during the time a player has to accept a QO (unless QO is withdrawn, this is from July 1 until October 1, or March 1 if extended).

Team must provide the NBA with a written statement relinquishing the Right of First Refusal. The NBA shall provide a copy to the Players Association by fax or email within two (2) business days. Player then immediately becomes FA, and his cap hold is extinguished.
Resolving disputes in RFA process

Expedited arbitration is the exclusive method. Any dispute, between any of RFA, New Team, and ROFR team, must be submitted to the System Arbitrator who will rule within 5 days.
Deadline for giving an Offer Sheet to the ROFR team.

March 1. After this, a RFA cannot get an offer from another team.
Timeline and procedure for notifying NBA and PA of Offer Sheet and match

1. When ROFR team receives an Offer Sheet, it must give a copy to the NBA the same day. NBA must promptly give a copy to the PA.
2. If ROFR team matches, it must give a copy to the New Team, which must promptly be given to the NBA, who must promptly give a copy to the PA.
Actual delivery of Offer Sheet, ROFR, and other notices required.

Must be either by personal delivery or by pre-paid certified, registered, or overnight mail
addressed as follows:

To NBA Team: addressed to that Team at the principal address of such Team as then listed on the records of the NBA or at the Team’s principal office, to the attention of the Team’s general manager;

To a RFA: For QO-related notices, to the last known address of the player or his representative. For Offer Sheet-related notices, to his address listed on the Offer Sheet and his representative, if indicated on Offer Sheet.
When Offer Sheet is deemed given

When RECEIVED by the ROFR team.

Note: This usually means it gets delivered in person, which led to a situation in which Houston was trying to find Glen Grunwald (NYK GM) at the Vegas Summer League to give him the Offer Sheet for Jeremy Lin.
When First Refusal Exercise Notice (i.e., notice of matching Offer Sheet) is deemed given

When SENT by ROFR team.

Note: This is key to allow the team to match before the 3 days is up.
When is notice of Qualifying Offer and notice of extension of Qualifying Offer date deemed given?

When notice is SENT.
When are all other notices under Article XI deemed given?

When RECEIVED by the party to whom it is addressed.

Note: All other notices include notice relinquishing a Right of First Refusal, an acceptance of a Qualifying Offer, a withdrawal of a Qualifying Offer, notice that a Qualifying Offer fails to meet one or more of the criteria for a Qualifying Offer, etc.
Development of electronic notice process

Parties agree to try to develop one, but until both NBA and PA agree in writing that this process is operational, Once this is operational, any notice given electronically will be deemed effective immediately. Until it is operational, the old notice provisions in Article XI remain in effect.
Restrictions on Team and Player Options (aside from Rookie Scale contracts)

1. Must be specifically negotiated between the team and a Veteran or non-1st round rookie.
2. Option can only be for one year.
3. Can be exercised only once.
4. Provides for at least 100% of the Salary, Likely and Unlikely bonuses from the previous year
5. All other terms must be same as previous year, including percentage of salary that is guaranteed.

Note: Can a non-Rookie Scale deal with a first rounder (after 3 years have passed) have a team option or player option? This would imply that it can't.
Additional language that must be included in Exhibit 2 if Player Option year has guaranteed salary

A: Salary for player option year is guaranteed (to the percentage specified) even if the team waives the player before option year is exercised


B: Team is not responsible for paying any salary in player's option year if waived before he exercises the option. If this language is included, the player cannot exercise the option earlier than the end of the regular season preceding the option year.
Early Termination Option (ETO)

1. May be exercised only once.
2. Can take effect no earlier than the end of the fourth Season of the Contract.

Note: This means only 5 year contracts can have ETOs, and that no player signing with a new team can have an ETO in his contract.
Amendment or Extension of contract to include ETO

1. Contract that does not include an ETO when signed cannot be amended to provide an ETO during the original term of the contract.
2. Non-rookie extensions may not include an ETO, and any existing one must be eliminated.
3. Rookie extensions can have ETOs, but because it can only be after the 4th year only Designated Players may have them.
No conditional Options

The right to exercise an Option or ETO can't be based on the fulfillment of some condition (i.e., team or player gets the right if player appears in a certain # of games). If included in the contract, the player or team must have the right to exercise it.
Dates for Exercising Options

1. ETO must be exercised by June 30 prior to the Effective Season (the one that would be cancelled).
2. Team or player options must be exercised by June 30 prior to the season covered by the option, with one exception:
3. If a player option would allow a player to become a RFA then must be declined prior to June 25.

Note: A player or team can also agree not to exercise the option, like Dwight Howard did by "opting in" during the 2012 season for the Magic and foregoing his ETO.
Noticing PA of Option Exercise or Non-Exercise

NBA must provide PA with copies within 2 business days of receiving it from the Team.