# The CBA Guide > Guide to the NBA CBA and Salary Cap ## Pages - [Terms of Use](https://cbaguide.com/termsofuse/): Terms of Use Last Updated: December 1, 2025 1. Site Ownership & Purpose The CBA Guide (the “Site”) is owned and operated by Colin Maher, Sole Proprietor. The Site provides articles, explanations, tools, data, and other materials relating to the NBA Collective Bargaining Agreement and salary cap rules (“Site Content”). The Site is currently free to access, with premium tools or features potentially introduced in the future. 2. License to Use the Site You are granted a limited, revocable, non-exclusive license to use the Site Content for personal, non-commercial purposes. You may not copy, scrape, redistribute, or otherwise reproduce Site […] - [Guide by Section](https://cbaguide.com/section/): For those who would rather view The Guide broken down by Section, you can click through each section below. - [Master Guide](https://cbaguide.com/masterguide/) - [Historical Cap Thresholds](https://cbaguide.com/resources/caphistory/): Season % Change Floor Cap Tax 1st Apron 2nd Apron BAE Room MLE NTMLE TMLE 2026–27* 7.34% $149,400,000 $166,000,000 $201,690,000 $210,331,000 $223,082,000 $5,511,000 $9,425,000 $15,139,000 $6,102,000 2025–26 10.00% $139,182,000 $154,647,000 $187,895,000 $195,945,000 $207,824,000 $5,135,000 $8,781,000 $14,104,000 $5,685,000 2024–25 3.36% $126,529,200 $140,588,000 $170,814,000 $178,132,000 $188,931,000 $4,668,000 $7,983,000 $12,822,000 $5,168,000 2023–24 10.00% $122,418,000 $136,021,000 $165,294,000 $172,346,000 $182,794,000 $4,516,000 $7,723,000 $12,405,000 $5,000,000 *2026-27 is based on most recent NBA Projection, per report. - [Minimum Salary Scale](https://cbaguide.com/resources/minimumscale/) - [Rookie Salary Scale](https://cbaguide.com/resources/rookiescale/): Season: - [2025-26 Amounts](https://cbaguide.com/resources/amounts/): Thresholds Salary Cap $154,647,000 Minimum Team Salary $139,182,000 Luxury Tax $187,895,000 First Apron $195,945,000 Second Apron $207,824,000 Exceptions NTMLE $14,104,000 MLE $5,685,000 Room MLE $8,781,000 BAE $5,134,000 Early Bird $14,290,500 Salaries EAPS $14,222,000 0–6 YOS Max Salary $38,661,750 7–9 YOS Max Salary $46,394,100 10+ YOS Max Salary $54,126,450 0 YOS Minimum Yearly Salary $1,272,870 2 YOS Minimum Yearly Salary $2,296,274 10+ YOS Minimum Yearly Salary $3,634,153 0 YOS Minimum Per-Day Minimum $7,315 2 YOS Minimum Per-Day Minimum $13,197 0 YOS Minimum 10-Day Salary $73,153 2 YOS Minimum 10-Day Salary $131,970 Two-Way Salary $636,435 Exhibit 10 Bonus $85,300 Cash & IPPA […] - [About](https://cbaguide.com/about/) - [Suggestion Box](https://cbaguide.com/suggestions/): Please leave any thoughts you might have about The CBA Guide. We’re happy to take any questions, critiques, comments or ideas on changes or additions you’d like to see. The most active Beta Users will receive discounts to the Premium Content when released! - [Beta Signup](https://cbaguide.com/signup/) - [Over 38 Calculator](https://cbaguide.com/resources/over38calculator/) - [Resources](https://cbaguide.com/resources/): 2025-26 Amounts Rookie Scale Salaries Minimum Scale Salaries Historical Thresholds Over 38 Calculator - [Your Profile](https://cbaguide.com/account/your-profile/): [pmpro_member_profile_edit] - [Log In](https://cbaguide.com/login/): [pmpro_login] - [Membership Levels](https://cbaguide.com/membership-levels/): [pmpro_levels] - [Membership Orders](https://cbaguide.com/account/membership-orders/): [pmpro_invoice] - [Membership Confirmation](https://cbaguide.com/membership-checkout/membership-confirmation/): Thank you for registering for the Beta version of The CBA Guide! Get Started Here If you have comments, questions, or suggestions on making the site better, submit in the Suggestion Box. The more active you are, the more chances you have to earn discounts on future premium products! - [Membership Checkout](https://cbaguide.com/membership-checkout/) - [Membership Cancel](https://cbaguide.com/account/membership-cancel/): [pmpro_cancel] - [Membership Billing](https://cbaguide.com/account/billing/): [pmpro_billing] - [Membership Account](https://cbaguide.com/account/): [pmpro_account] - [Trade Bonus](https://cbaguide.com/transactions/trades/tradebonus/) - [Expansion Teams](https://cbaguide.com/expansion/): Exclude Expansion Teams for the first 2 years from calculations of: An[cwrap text=”(Art. VII(2)(g), 197)”] Expansion Team will have 66.66% of the normal Salary Cap Threshold in the first year it plays and 80% in the second year.[/cwrap] If[cwrap text=”(Art. VII(4)(b), 217)”] an Expansion Team selects a Player in an Expansion Draft, then waives him, the Salary won’t count toward Team Salary, but will count toward Minimum Team Salary if actually paid.[/cwrap] Bird[cwrap text=”(Art. VII(6)(b), 231)”] Rights do not reset when Expansion Team selects a Player in an Expansion Draft.[/cwrap] - [Signings](https://cbaguide.com/transactions/signings/): Unrestricted Free Agency (UFA) Restricted Free Agency (RFA) Draft Picks - [League Calendar](https://cbaguide.com/calendar/): Interactive Calendar Search Category All categories Date Rule Categories July Moratorium Dates The[cwrap text=”(Art. I(mm), 6)”] July Moratorium runs from 12:01 A.M. ET on July 1st to 12:00 P.M. on July 6th.[/cwrap] Negotiations Permitted Teams[cwrap text=”(Art. II(15)(a)(i), 65)”] are permitted to negotiate with Free Agents over terms and conditions of a Contract to be entered into after the July Moratorium.[/cwrap] Limited Agreements Permitted Teams[cwrap text=”(Art. II(15)(a), 65)”] are not permitted to enter into oral or written agreements (or Trades) during the July Moratorium other than the following:[/cwrap] No Public Statements No[cwrap text=”(Art. XI(c), 311)”] public statements by the Team, Player […] - [Sign-and-Trade](https://cbaguide.com/transactions/trades/signandtrade/): Sign-and-Trade A Sign-and-Trade is a mechanism where a Player that is no longer under Contract with his Prior Team, initially signs with his Prior Team on the condition of being traded to a new Team. Sign-and-Trade allows a Team to sign a Player using the Prior Team’s Bird Rights. Extend-and-Trade Generally Similar[cwrap text=”(Art. VII(8)(e)(2), 263)”] to a Sign-and-Trade, a Team may enter into an Extension with the Player under the condition he is traded subsequent to the amendment to the Contract. When signing an Extend-and-Trade, the terms of the Contract are more restrictive than if signing an Extension and staying […] - [Arbitration and Grievances](https://cbaguide.com/governance/arbitration/) - [Anti-Collusion](https://cbaguide.com/governance/anticollusion/) - [Player Eligibility](https://cbaguide.com/eligibility/playereligibility/): The Process Three pages in this Guide discuss a Player’s entry into the NBA: - [Draft Pick Signings](https://cbaguide.com/transactions/signings/draftpicks/): The Process Three pages in this Guide discuss a Player’s entry into the NBA: First Round Picks Rookie Scale Contracts If[cwrap text=”(Art. VIII(1)(a), 290)”] a Player is a First Round Pick, then the Player must sign a Rookie Scale Contract.[/cwrap] Term Length Every[cwrap text=”(Art. VIII(1)(a), 290)”] Rookie Scale Contract is a 4-Year Contract with Years 1 and 2 guaranteed and two Team Options for Years 3 and 4 called Rookie Scale Team Options.[/cwrap] The Rookie Scale Team Option has to be exercised by October 31st the Season prior to the applicable Year. If[cwrap text=”(Art. XI(4)(b), 319)”] both Rookie Scale Team […] - [Extensions](https://cbaguide.com/transactions/extensions/): Rookie Scale Extensions Player Eligibility Rookie Scale Extensions[cwrap text=”(Art. VII(7)(b)(1), 254)”] are only available to (i) Players currently playing under a Rookie Scale Contract and (ii) both Team Options have been exercised.[/cwrap] When Extension Can be Signed A[cwrap text=”(Art. VII(7)(b)(1), 254)”] Rookie Scale Extension can only be signed during the Second Option Year of the Rookie Scale Contract, from 12:01 P.M. ET on the last day of the Moratorium Period until 6:00 P.M. ET on the day prior to the start of the Regular Season.[/cwrap] Players that do not sign a Rookie Scale Extension by the start of the Regular […] - [Circumvention](https://cbaguide.com/governance/circumvention/): Generally General Circumvention Provisions The[cwrap text=”(Art. XIII(1)(a), 339)”] CBA includes a general provision restricting any action by the League, Team or Players that is an attempt to circumvent the CBA.[/cwrap] The[cwrap text=”(Art. XIII(1)(b)-(c), p. 339)”] following acts are considered actions that circumvent the CBA:[/cwrap] “Player” and Team Affiliate For all circumvention rules, “Player” refers to the Player and any person or entity acting on behalf of the Player. “Team” refers to the Team and any Team Affiliate. Penalties The[cwrap text=”(Art. XIII(3)(a), 341)”] penalties for violating the above general Circumvention provision include the following, to be issued by the Commissioner:[/cwrap] No […] - [Player Conduct](https://cbaguide.com/governance/conduct/): Suspensions On-Court Suspensions For[cwrap text=”(Art. VI(12)(c), 121)”] suspensions related to conduct on the court, a Player can request a hearing with the League.[/cwrap] Off-Court Suspensions For[cwrap text=”(Art. VI(13), 121)”] suspensions related to off-court conduct, the League must provide the NBPA with specific evidence which the discipline was based.[/cwrap] Mandatory Suspensions The[cwrap text=”(Art. VI, 112)”] following mandatory suspensions are levied:[/cwrap] Reduction in Pay for Suspensions Below are the rules governing when the Player’s pay is reduced due to a Suspension. Base Compensation Failure[cwrap text=”(Art. VI(1)(a)(i), 112)”] or refusal to render services required in the Contract: Reduced 1/91.6th of the Player’s Base […] - [League Governance](https://cbaguide.com/governance/): Player Conduct Circumvention Anti-Collusion Arbitration and Grievances - [League Finances](https://cbaguide.com/finances/): The Financial Process Below are the steps taken at the end of the Salary Cap Year to determine (i) how much the Players are entitled and (ii) the Salary Cap Threshold for the following Season. Step 1 – Audit Report Submitted At the end of each Salary Cap Year, an Audit Report is prepared containing the financials of the Season. Step 2 – Finding Basketball Related Income The financials will include Basketball Related Income (BRI), which is all revenue the parties have agreed the Players are to receive a share of. Step 3 – Finding the Designated Share The Designated […] - [Team Rosters](https://cbaguide.com/eligibility/rosters/) - [International Buyouts](https://cbaguide.com/eligibility/international/): FIBA Agreement Generally The NBA has a formal Agreement with the FIBA regarding the mutual recognition of Player Contracts between the two Leagues. As such, an NBA Team (or NBA affiliate such as a G League Team) cannot sign Players who have a FIBA contract and a FIBA Team cannot sign a Player who has an NBA Contract (note that being drafted by an NBA does not count as having an NBA Contract). This is the case for both drafted and undrafted Players with FIBA Contracts. - [Draft Rules](https://cbaguide.com/eligibility/draftrules/): The Process Three pages in this Guide discuss a Player’s entry into the NBA: - [Draft / Player Eligibility](https://cbaguide.com/eligibility/): Player Eligibility Draft Rules International Buyouts Team Rosters - [The Luxury Tax](https://cbaguide.com/thresholds/luxurytax/): Luxury Tax $187,895,000 Tax Salary Calculation Date of Calculation Tax[cwrap text=”(Art. VII(2)(d)(1)(i), 179)”] Salary is determined as of the start of the Team’s last Regular Season game, subject to a couple of minor adjustments made after the Regular Season.[/cwrap] Included in Tax Salary Below[cwrap text=”(Art. VII(2)(d)(1)(i), 179)”] are the items included in Tax Salary:[/cwrap] Excluded in Tax Salary Exclude[cwrap text=”(Art. VII(2)(d)(1)(i), 179)”] the following from Tax Salary:[/cwrap] Tax Penalties Tax Threshold The Tax Threshold always equals 121.5% of the Salary Cap. For 2025-26 it is $187,895,000. For a breakdown of all Thresholds, click here. Initial Penalties If[cwrap text=”(Art. VII(2)(d)(2), 182)”] […] - [The Aprons](https://cbaguide.com/thresholds/apron/): Apron Threshold First Apron $195,945,000 Second Apron $207,824,000 Apron Team Salary Calculation In[cwrap text=”(Art. VII(2)(e), 186)”] determining if a Team falls above or below the First or Second Apron, Apron Team Salary is used.[/cwrap] Apron[cwrap text=”(Art. VII(2)(e), 186)”] Team Salary takes Team Salary, subtracts applicable Cap Holds, and includes the following (click to review details).[/cwrap] Team Salary Apron[cwrap text=”(Art. VII(2)(e)(1), 186)”] Team Salary includes Team Salary after subtracting all applicable Cap Holds.[/cwrap] Unlikely Bonuses Apron[cwrap text=”(Art. VII(2)(e)(1)(i), 186)”] Team Salary adds Unlikely Bonuses, which are not included in the initial calculation of Team Salary.[/cwrap] 0 to 1 Years of Service […] - [The Salary Cap](https://cbaguide.com/thresholds/salarycap/): Salary Cap $154,657,000 The “Soft Cap” Explained Each Season, the Salary Cap is a threshold based upon Basketball Related Income (BRI) from the prior Season. To review the details of how it is set, visit the Finances section of the Guide, here. Team[cwrap text=”(Art. VII(2)(b)(1), 176)”] Salary is used to determine if a Team is above or below the Salary Cap. Teams may not exceed the Salary Cap, unless the Team uses an Exception (discussed below) to do so.[/cwrap] This is called a “Soft Cap” system because while there is a Salary Cap, Teams are permitted to exceed the Salary […] - [Minimum Team Salary](https://cbaguide.com/thresholds/minimumsalary/): Minimum Salary Threshold $139,191,000 Start of Regular Season Minimum Team Salary and Minimum Threshold Minimum[cwrap text=”(Art. VII(2)(c)(1)(i), 176)”] Team Salary is calculated by taking Total Salaries for each Team and making adjustments below.[/cwrap] The[cwrap text=”(Art. VII(2)(a)(4)(i), p. 170)”] Minimum Team Salary Threshold is 90% of the Salary Cap.[/cwrap] Determine Penalties If[cwrap text=”(Art. VII(2)(c)(2), 177)”] Minimum Team Salary* is less than the Minimum Threshold at the start of the Regular Season, then the following penalties are enforced:[/cwrap] *Apply[cwrap text=”(Art. VII(2)(c)(1)(ii), 176)”] the following adjustments to Minimum Team Salary only for this specific rule:[/cwrap] During Regular Season New Minimum Threshold Established If[cwrap […] - [Waivers](https://cbaguide.com/transactions/waivers/): The Waiver Process Below[cwrap text=”(By-Laws, Sec. 5, p. 65)”] is a summary of how the Waiver process works:[/cwrap] Waiver Requests and Claims Waiver Requests A Waiver Request cannot be withdrawn during the 48-hour Waiver process. He is either claimed or the Contract is terminated. Both the Roster Spot and the Non-Guaranteed Salary are freed up immediately upon request . This allows Teams to effectuate trades without having to wait the 48 hours. July Moratorium does not prohibit Requests or Claims. 10-Day Contracts do not go through the Waiver Process and are terminated immediately. Playoff Eligibility and Waiver A[cwrap text=”(Art. XXIX(4), […] - [Renegotiations](https://cbaguide.com/transactions/renegotiations/): Eligibility Dates of Eligibility A[cwrap text=”(Art. VII(7)(c)(5), 256)”] Player’s Contract cannot be renegotiated from March 1st through June 30th.[/cwrap] Player Eligibility Only[cwrap text=”(Art. VII(7)(c)(1), 255)”] Player Contracts covering 4+ Seasons may be renegotiated.[/cwrap] Player[cwrap text=”(Art. VII(7)(c)(1), p. 255 & Art. VII(7)(d)(3), p. 257)”] becomes eligible on the third anniversary of the signing of the Contract, with the following exceptions:[/cwrap] Contract Terms Compensation Increase in Compensation The[cwrap text=”(Art. VII(7)(c)(3)(i), 255)”] Renegotiation can include an increase in Regular Salary and Performance Bonuses for the then-current Salary Cap Year.[/cwrap] The Renegotiation may provide for additonal Performance Bonuses that were not in the Original […] - [Restricted Free Agency (RFA)](https://cbaguide.com/transactions/signings/rfa/): The RFA Process Step 1 – Qualifying Offer If the Player is subject to Restricted Free Agency, then the Team he last played for (Prior Team), has to make a Qualifying Offer (QO) to retain its Right of First Refusal (ROFR or Matching) rights to the Player. Step 2 – RFA makes a decision Step 3 – Prior Team Makes a Decision (only if Offer Sheet signed) If RFA signs an Offer Sheet, the Prior Team has to decide whether to Match the Principal Terms of the Offer Sheet or let him sign with the Offering Team. Players Subject to […] - [Unrestricted Free Agency (UFA)](https://cbaguide.com/transactions/signings/ufa/): Triggering UFA Status Finishing a Contract If[cwrap text=”(Art. XI(1)(a)(i), 310)”] a Player is in the final Season of his Contract and he is not subject to Restricted Free Agency, then he becomes a UFA as of July 1st following his final Season. [/cwrap] Other UFA Methods Other than finishing an existing Contract, a Player may become a UFA in other ways, including: Key Dates Signing Dates While[cwrap text=”(Art. II(15)(a), 65)”] a Player becomes a UFA on July 1st, he cannot sign a Contract until after the July Moratorium. [/cwrap] Negotiation Dates A[cwrap text=”(Art. VII(7)(d)(8), p. 259)”] UFA can negotiate with […] - [Transactions](https://cbaguide.com/transactions/): Signings Unrestricted Free Agency (UFA) Restricted Free Agency (RFA) Draft Picks Extensions Renegotiations Trades General Trade Rules Traded Player Exceptions Trade Salary Sign-and-Trade // Extend-and-Trade Waivers - [Contract Types](https://cbaguide.com/contractanatomy/contracttypes/): Introduction Below are the different Contract Types a Player can sign: Standard NBA Contract Any[cwrap text=”(Art. II(h)(ii), 62)”] NBA Contract signed is considered a Standard Contract unless it is a Two-Way Contract.[/cwrap] Ten-Day Contract Ten-Day Contracts Generally The Ten-Day Contract is a limited Contract allowing a Team to sign a Player for 10 days or 3 games. It is typically used to fill the backend of the roster, particularly due to injury or for cost-saving measures. Ten-Day Contracts can only be signed starting on January 5th, and Teams are limited to the amount of Ten-Day Signings based upon other Players on their […] - [Contract Anatomy](https://cbaguide.com/contractanatomy/): Uniform Player Contract Contract Types Contract Terms - [Trades](https://cbaguide.com/transactions/trades/): General Trade Rules Traded Player Exceptions Trade Salary Trade Bonus Sign-and-Trade // Extend-and-Trade - [Trade Salary](https://cbaguide.com/transactions/trades/tradesalary/) - [Traded Player Exceptions](https://cbaguide.com/transactions/trades/tpe/): Generally When executing a Trade, it is important to see where the Team lands after the Trade is executed. If the Team is over the Salary Cap, then a Traded Player Exception (TPE) is required to execute the Trade (if below the Salary Cap, no Exception is needed). There are four different types of TPE’s. A TPE is only available if the Team’s Apron Team Salary falls below the applicable Apron Restriction. The Salary Limit is how much Incoming Trade Salary (ITS) is permitted, which always depends on the Team’s Outgoing Trade Salary (OTS), other than the Room TPE. Visit […] - [General Trade Rules](https://cbaguide.com/transactions/trades/traderules/): Generally This page addresses general Trade rules that may apply when executing a Trade. There are separate pages that address the following, more complex Trade topics: Roster Spot Requirement If a Team is acquiring more Players than it is sending out, then the Team must have an open Roster Spot to absorb the additional Player(s) prior to executing the Trade. Note that a Team can request a Player to be waived and the roster spot will be opened before he clears waivers (they don’t have to wait). Tradeable Assets It’s important to note what counts as an “asset” in a […] - [Team Salary](https://cbaguide.com/thresholds/teamsalary/): Generally Team Salary is the calculation made to determine how much a Team falls above or below the Salary Cap threshold. Team Salary is not just the Salaries of a Team’s Players, but includes additional items–primarily Cap Holds–while excluding others. Team Salary Summary When calculating Team Salary, you account for the following. Click the link to jump to the description. Include: Exclude: Players on Roster Include[cwrap text=”(Art. VII(4)(a)(1), 211)”] all Salaries of the Players currently on the Team.[/cwrap] Waived Players Guaranteed Salaries If[cwrap text=”(Art. VII(4)(a)(1)(i), 211)”] a Player is waived, but has Protected Compensation, then the Dead Salary will remain […] - [Thresholds](https://cbaguide.com/thresholds/): The Five Thresholds Below are the five thresholds in the CBA that carry restrictions and/or penalties, serving to regulate spending and create an even playing field for all Teams: Because the Salary Cap is a “soft” Salary Cap (i.e. there are Exceptions permitting Teams to exceed the Salary Cap), the CBA implemented the Luxury Tax to impose financial penalties and the First and Second Aprons to impose roster-building limitations to deter excessive spending. The Minimum Team Salary threshold, on the other hand, was implemented to ensure Teams were spending a minimum amount on its roster on an annual basis. Setting […] - [Payment Arrangements](https://cbaguide.com/contractanatomy/terms/paymentarrangements/): Generally Summary of Payment Arrangements The UPC contains a default Payment Schedule, where the Player’s Compensation is paid on semi-monthly installments over each Season. Subject to limitations, the CBA has tools to allow the Team and Player to agree to different Payment Arrangements to receive his Compensation sooner, or defer payments to a later date. Those tools include the following (discussed in more detail below): Effect on Team Salary When a Player is paid (via the Payment Arrangement), and how Compensation is treated as Salary for Team Salary purposes, have to be viewed separately. Below are two examples: Limitations Generally […] - [Salary](https://cbaguide.com/contractanatomy/terms/compensation/salary/): What’s Included in Player’s Salary The[cwrap text=”(Art. I(lll), 9)”] CBA defines Salary as the following:[/cwrap] Include: Exclude: Adjustments Make[cwrap text=”(Art. VII(3), 198)”] adjustments to Salary if the below circumstances are applicable:[/cwrap] Deferred Compensation Deferred[cwrap text=”(Art. VII(3)(a)(1), 198)”] Compensation is included in a Player’s Salary for the Salary Cap Year encompassing the Season in which it was earned, not in the year it was paid.[/cwrap] The Contract shall identify the specific Season in which any Deferred Compensation is earned to allow for proper allocation in such Season. The “Over 38 Rule” General Rule The Over 38 Rule is designed to frontload […] - [Regular Salary](https://cbaguide.com/contractanatomy/terms/compensation/regularsalary/): Definition Regular Salary[cwrap text=”(Art. I(1)(zz), 7)”] is a type of Compensation, defined as Salary minus Signing Bonuses and Incentive Compensation.[/cwrap] Regular Salary – Uses Below are the provisions in the CBA applying Regular Salary: - [Base Compensation](https://cbaguide.com/contractanatomy/terms/compensation/basecompensation/): Definition Compensation[cwrap text=”(Art. I(1)(g), p. 1)”] other than any bonuses of any kind.[/cwrap] Current vs. Deferred Base[cwrap text=”(Art. I(1)(m)-(n), p. 2)”] Compensation includes Current Base Compensation (paid in the Salary Cap Year earned) and Deferred Base Compensation (paid at a later date).[/cwrap] Visit the Deferred Compensation page for additional restriction on terms. Base Compensation – Uses Below are the provisions in the CBA applying Base Compensation: - [Incentive Compensation](https://cbaguide.com/contractanatomy/terms/compensation/incentivecompensation/): Generally What’s Included in “Incentive Compensation” Incentive Compensation[cwrap text=”(Art. I(1)(ee), 4)”] is the all-encompassing definition for three types of incentives permitted in Contracts:[/cwrap] Incentive Compensation and Salary All[cwrap text=”(Art. VII(3)(d), 206)”] types of Incentive Compensation are counted toward Salary other than Unlikely Bonuses.[/cwrap] Limitations for All Incentive Compensation Below are limitations applied to all Incentive Compensation types. Note there are additional limitations depending on the type of Incentive Compensation (see below). Amount Incentive[cwrap text=”(Art. II(12)(a)(i), 58)”] Compensation cannot exceed 20% of a Player’s Regular Salary each Season.[/cwrap] Percentage Increase/Decrease The[cwrap text=”(Art. VII(5)(a), 226)”] maximum percentage increase or decrease is always either 5% […] - [Definitions](https://cbaguide.com/definitions/): Average[cwrap text=”(Art. I(1)(f), 1)”] Player Salary – Total Salaries (including payments made as penalty being below Minimum Team Salary Threshold), divided by 396.[/cwrap] Base[cwrap text=”(Art I(1)(g), 1)”] Compensation – Compensation other than any Bonuses of any kind.[/cwrap] Estimated[cwrap text=”(Art. I(1)(w), 3)”] Average Player Salary (EAPS) – 104.5% of the Prior Year’s Average Player Salary.[/cwrap] Incentive[cwrap text=”(Art. I(1)(ee), 4)”] Compensation – All encompassing definition for three types of incentives permitted in Contracts:[/cwrap] Room[cwrap text=”(Art. I(1)(kkk)), 9)”] – The extent to which:[/cwrap] Season[cwrap text=”(Art. I(1)(ooo), 10)”] – Period beginning on the first day of training camp through the last game of the […] - [Options and ETO's](https://cbaguide.com/contractanatomy/terms/options/): Team and Player Options Options Generally Options provide a right to extend a Contract. An Option can be a Team Option (allowing the Team to exercise the option and extend the Contract) or a Player Option (vice versa). Other than Rookie Scale Contracts, which automatically provide two Team Options, the CBA only allows one Option Year in a Standard Contract. Limitations Below[cwrap text=”(Art. XII(1)-(3), p. 336)”] are the limitations for both Team and Player Options:[/cwrap] Exercise Period Subject[cwrap text=”(Art XII(4), 338)”] to the exceptions below, an Option must be exercised by 5:00 P.M. E.T. on the June 29th prior to […] - [Contract Limitations](https://cbaguide.com/contractanatomy/terms/contractlimitations/): Minimum Salary Minimum Salary Generally The[cwrap text=”(Art. II(6)(a), 33)”] CBA sets Minimum Salary Players can be paid. The amount is based on their Years of Service (YOS) in the League (other than Two-Way Contracts, which have a set Salary irrespective of YOS).[/cwrap] Player’s Applicable Minimum Salary A[cwrap text=”(Art. II(6)(a), 33)”] Player’s “applicable Minimum Salary” is his Minimum Salary based the year of signing and his YOS at that time.[/cwrap] As an example, below is the Minimum Salary for the 2025-26 Season. If a Player were signing a Minimum Contract and had 2 YOS, his first year Salary is $2,296,274. Keep […] - [Compensation Protection](https://cbaguide.com/contractanatomy/terms/compensationprotection/): Generally Generally, Contracts are not required to guarantee any Compensation owed. Compensation Protection can be added to a Contract to guarantee all or a portion of a Player’s Base Compensation if the Contract is terminated prior to the expiration of its term. There[cwrap text=”(Art. II(3)(i), 18)”] are different types of Compensation Protection:[/cwrap] For categories 2 through 5, the Team must not have procured an insurance policy for the Player’s benefit. Limitations Increase in Protection Subject[cwrap text=”(Art. II(4)(i), 28)”] to the exception below,the percentage of protected Base Compensation cannot exceed the percentage of unearned protected Base Compensation of any prior Season.[/cwrap] […] - [Compensation](https://cbaguide.com/contractanatomy/terms/compensation/): Compensation – Definition Any[cwrap text=”(Art. I(k), p. 2)”] compensation that is or could be earned or paid to a Player (including those whose contracts have been terminated).[/cwrap] - [The CBA Guide](https://cbaguide.com/): Welcome Welcome to The CBA Guide. This Guide is meant to serve as an in-depth reference guide to the NBA’s CBA and Salary Cap rules. You will find the all-in-one Master Guide below. If you prefer a section-by-section breakdown of the Guide, you can start here. Searching The Guide If you’re looking for a specific term, you can enter it in the search bar above (or hit [Command] + F and search through the entire Guide). Citations The majority of The Guide has citations to the sections and page numbers of the CBA. If you hover your mouse over the […] - [Uniform Player Contract](https://cbaguide.com/contractanatomy/upc/) - [Contract Terms](https://cbaguide.com/contractanatomy/terms/): Compensation Compensation Protection Payment Arrangements Options and ETO’s Contract Limitations [comment]: # (Generated by Hostinger Tools Plugin)