Definitions

Average Player Salary – Total Salaries (including payments made as penalty being below Minimum Team Salary Threshold), divided by 396.

  • The 396 number is taking the number of Teams (30) and multiplying by 13.2

Base Compensation – Compensation other than any Bonuses of any kind.

Estimated Average Player Salary (EAPS) – 104.5% of the Prior Year’s Average Player Salary.

Incentive Compensation – All encompassing definition for three types of incentives permitted in Contracts:

  1. Performance Bonuses (Likely or Unlikely);
  2. Physical/Academic Achievements;
  3. Promotional Appearances.

Room – The extent to which:

  1. Team Salary is less than the Salary Cap, or;
  2. Team is entitled to use the following Exceptions:
    • Disabled Player Exception;
    • Bi-Annual Exception;
    • NTMLE;
    • TMLE;
    • Room MLE;
    • Traded Player Exception.

Season – Period beginning on the first day of training camp through the last game of the NBA Finals.

  • Unless otherwise stated, when counting Seasons, you count the then-current Season a Contract/Extension is signed (even if 1 day is left in the Year), and you count the Option Year.
  • Unless otherwise stated, all calculation of Compensation and Salary will include the Option Year.

Team Affiliate – The following are included in Team Affiliate:

  1. Any individual/entity with an ownership interest in the Team;
  2. Any (i) individual/entity that (ii) is controlled by or under common control with, (iii) an entity affiliated to the Team or an individual related to the Team;
  3. Any (i) individual/entity that (ii) is controlled by or under common control with, (iii) an entity or individual from #2 above;
  4. Any entity that someone from #1 or #2 above, either (i) holds more than 5% ownership interests or (ii) particpates/influences in management or operations.

Total Salaries – Salaries included in Team Salary, but make the following adjustments:

  1. Include Incentive Compensation actually earned;
  2. Exclude Incentive Compensaiton not earned;
  3. Include Salary excluded from Team Salary as a Long-Term Injury Exclusion;
  4. Include retired player payments;
  5. Two-Way Salaries paid;
  6. Include Exhibit 10 Bonuses paid;
  7. Exclude 50% of Compensation reduced from suspension by the League or Team;
  8. Disregard any stretching of Salary (apply Salary prior to Stretch).

Years of Service (YOS) – The number of years of NBA service for a Player. If the Player is credited for a service year, then it is added on July 1st the following Salary Cap Year.

A Player is credited with a YOS for each year he is on an NBA Active or Inactive List for 1+ days during the Regular Season.

A Player will not be credited his YOS under the following circumstances:

  1. Withholds services during the Season for 30+ days;
  2. RFA does not sign a Contract by March 1st when his QO is extended to March 1st;
  3. Commissioner disapproved a Contract.