Both the time when an Extension can be signed and the allowable terms of the Extension depend on whether it is a Rookie Scale Extension or Veteran Extension.
Rookie Scale Extensions
Player Eligibility
Rookie Scale Extensions are only available to (i) Players currently playing under a Rookie Scale Contract and (ii) both Team Options have been exercised.
The Rookie Scale Extension rules are limited to Extensions off of Rookie Scale Contracts, and therefore are limited to First Round Picks.
Any Second Round Picks or Unsigned Rookie Free Agents coming off their rookie Contracts will apply Veteran Extension rules below.
When Extension Can be Signed
A 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.
In 2025, Players drafted in 2022 were eligible for Rookie Scale Extensions. For example, Chet Holmgren signed a 5-year, $239 million Rookie Scale Extension with the Thunder. Next offseason, First Round Picks drafted in 2023 will be eligible for Rookie Scale Extensions.
Players that do not sign a Rookie Scale Extension by the start of the Regular Season will become Restricted Free Agents in the offseason.
Because Bennedict Mathurin and Jaden Ivey didn’t sign Rookie Scale Extensions prior to the start of the 2025-26 Regular Season, they are examples of Players that will become Restricted Free Agents in the 2026 offseason.
Salary
Maximum Amount Permitted
The Salary can be any amount up to his Maximum Salary, which is 25% of the Salary Cap, unless he satisfies the Higher Maximum Criteria. If he hits the Higher Maximum Criteria, he can be offered up to 30% of the Salary Cap.
Conditional Amount for Higher Max Criteria
If the Player hasn’t hit the Higher Max Criteria at the time of signing his Rookie Scale Extension, the increase can be conditional on him achieving the Higher Max Criteria in Year 4 of his Contract.
The Conditional Language can jump from 25% to 30% simply for achieving Higher Max Criteria or have levels based upon what is achieved.
Starting Salary can be 25%, that will raise to 27.5% for Second Team All-NBA and 30% for First Team All-NBA, MVP or DPOY.
Ja Morant
Morant made All-NBA in Year 3, but didn’t achieve it for his Year 4 so he didn’t achieve the Higher Max Criteria and his starting Salary was set at 25%. Trae Young
Young hadn’t earned All-NBA in his first 3 Seasons, but he earned All-NBA in Year 4, jumping his starting Salary from 25% to 30%. Luka Doncic
Doncic achieved All-NBA in Year 2 and Year 3. Therefore, he already reached the Higher Max Criteria when he signed his Rookie Scale Extension and was given 30% starting Salary with no conditions needed.
Length
Maximum
A Rookie Scale Extension can cover up to six Seasons from the date the Extension is signed (i.e. including the current Season and any Option Year).
Minimum
If a Rookie Scale Extension provides for Salary over 25% then the Rookie Scale Extension must be for a minimum of five Seasons (including the current Season and any Option Year).
Raises
Increases and decreases of up to 8% are permitted.
If starting Salary of the Rookie Scale Extension is based on percentage of Salary Cap, then the annual increase/decrease can be identified as a percentage of the starting Salary.
Veteran Extensions
Eligibility
Contract Length Determines Eligibility
Whether a Player is Extension eligible typically depends on the length of his current Contract and when it was signed.
| Contract Length | Eligibility |
|---|---|
| 1 to 2 Years | Not Eligible |
| 3 to 4 Years | Second Anniversary of Signing* |
| 5 to 6 Years | Third Anniversary of Signing |
*Renegotiation Exception – If Contract was a Renegotiation increasing Player’s Salary by 10% or more, then eligibility is not until the third anniversary of signing.
“Full Bird” Requirement – A Player can only sign an Extension if at the end of the Contract he will qualify for Full Bird Rights.
Determining Signing Date and Years
If an Extension/Renegotiation is signed on October 2nd through the last day before the Regular Season, it’s treated as being signed on October 1st for Extension eligibility purposes.
Always include remaining Seasons of the Original Contract when calculating the amount of years in an Extension.
If the new Extension is extending a previously-signed Extension, then the number of Seasons used to calculate eligibility is the number of Seasons included in the most recent Extension.
When Extension Can be Signed
One Season Remaining
If only one Season remains on the Contract, the Extension can be signed anytime during the Regular Season.
- Exception – A Designated Veteran Extension must still be signed before the start of the Regular Season.
More than One Season Remaining
If more than one Season remains on the current Contract, then Veteran Extensions can only be signed between July 6th at 12:01 P.M. up to the date before the Regular Season begins.
Compensation
A Player eligible for a Veteran Extension is typically limited to an increase in Compensation based upon the last Season of the existing Contract, subject to few exceptions.
Compensation is then split into different categories when calculating the increase limitation: Salary and Performance Bonuses.
The General 140% Increase
Salary
Unless one of the exceptions to the rule applies below, a Player’s starting salary in Year 1 of his extended term can be the greater of (i) 140% of the Regular Salary in the last year of his Contract, or (ii) 140% of the EAPS for the Salary Cap Year in which the Extension is signed (or 140% EAPS less Incentive Compensation if included in Extension).
The 140% increase limitation poses risks for Players who are underpaid in their current Contract. If the 140% increase is still below market value, then the Team must allow the Player to reach Free Agency to sign the Player to a larger Contract, availing him to other bidders. Take, for example, Austin Reaves of the Lakers. In 2025-26, Reaves is earning $13.9 million in the final year of his Contract. The first year of his Extension is limited to $19.46 million, which is still below his market value. The Lakers will therefore have to allow him to reach Free Agency before trying to sign him to a larger Contract using Full Bird Rights.
Incentive Compensation
If the last Season of the original Contract included Incentive Compensation, then the first Season of the Extension can include 140% of the Likely and Unlikely Bonuses, respectively, in the last Salary Cap Year covered by the original term (see below regarding Non-Performance Bonuses).
In October 2024, Aaron Gordon signed an Extension with the Nuggets that starts in 2026-27. His Extension included maximum increases for both his Base Salary and his Incentive Compensation, broken down below:
| Season | Base Salary | Incentive Compensation |
Increase Amount |
|---|---|---|---|
| 2025-26 | $22,841,455 | $1,200,000 | |
| 2026-27 | $31,978,037 | $1,680,000 | 140% |
| 2027-28 | $34,536,280 | $1,814,400 | 8% |
| 2028-29 | $37,094,523 | $1,948,800 | 8% |
Adjustment for Certain Bonuses
When determining the Player’s maximum allowable Salary in a Veteran Extension, you add (i) bonuses for physical/academic achievement, and (ii) bonuses related to promotional appearances to Regular Salary, and exclude them from Incentive Compensation.
Maximum Salary Limitation
If 140% increase exceeds the Player’s Maximum Salary, he will be reduced to his applicable Maximum Salary.
In 2025, Luka Doncic signed a new Extension for his Maximum Salary of 30% of the Salary Cap. This is because a 140% salary in the final season of his existing contract would have exceeded the 30% maximum he is allowed.
Designated Veteran Extension (the “Supermax”)
If a Player is eligible for the Supermax, then he can avoid the 140% limitation and sign for 30% to 35% of the Salary Cap.
Supermax Eligibility
A Player is eligible for the Supermax if the following elements are met:
- Completed 7 or 8 YOS at time of signing Extension;
- Has 1 or 2 Seasons remaining on Contract (including Option Year);
- Remains on his first Team or was traded during his first 4 Seasons;
- Has achieved the Higher Max Criteria at the time of signing his Extension.
No Conditional Language for Supermax
Unlike Rookie Scale Extensions, Veteran Extensions don’t allow conditional language for a Player to reach the Higher Maximum Criteria after the Extension is signed like the Rookie Scale Extension does.
The Player, like Jaylen Brown above, must have reached the Higher Maximum Criteria prior to the signing of the Extension
Trade Restriction of Supermax Contract
Player cannot be traded for 1 Year after signing Supermax.
The Ten-Year Veteran Exception
If (i) a Player played for his current Team for 10+ Seasons and (ii) whose Salary declined in the final Season of his Contract, then his maximum allowable Salary can be the following:
The greater of (i) 107.5% of the average of the Regular Salaries for each Salary Cap Year covered by the original Contract beginning when it was entered into or extended, or (ii) 107.5% of the Regular Salary in the last Salary Cap Year covered by his original Contract.
If this amount is less than the 140% rule above, then the 140% rule can be applied instead.
Length
A Veteran Extension other than a Supermax must be between 2 and 5 Seasons from the date it is signed.
Supermax Contracts must be for six Seasons from the date it’s signed.
Raises
Any Extension can be for up to 8% annual increases/decreases.
Trades Limiting Extension Terms
Extend-and-Trade
The above Salary, length and raises are not allowed when signing an Extension as part of a trade (i.e. an Extend-and-Trade).
Extend-and-Trade terms are limited to 120% of Prior Salary, 4 Seasons in length and 5% raises.
Visit the Extend-and-Trade page for full details.
The Six-Month Prohibition
To prevent the possibility of extending a Player immediately before or after a Trade to workaround the Extend-and-Trade limitations, the following trade restrictions were put in place:
- If a Player is acquired via Trade, the Team cannot sign the Player for more than 4 Seasons and 120% of his Prior Salary for six months.
- And vice-versa, if a Player signs an Extension for more than 4 Seasons, 120% increase in Prior Salary, or 5% raises, then he cannot be traded for six months.
Options in Original Contract
Team and Player Options
An already existing Option can be exercised or declined when effectuating an Extension, provided the eligibility requirements above are still met.
To do so, the Contract will be amended to simultaneously provide for the exercising or non-exercising of the Option along with the execution of the Extension.
If the Option is declined as part of the Extension, then the Extension must cover a minimum of two Seasons, excluding Option Years.
Early Termination Options (ETO’s)
A Contract that has been shortened by exercising an ETO cannot be extended.
If the Extension is signed prior to exercising the ETO, then it must be eliminated.
Signing Bonuses and Trade Bonuses
Signing Bonuses
An Extension can include a Signing Bonus, but the date when it becomes payable is limited. Visit the Payment Arrangements page for details.
Trade Bonuses and Extensions
Trade Bonuses can be added, removed or adjusted in an Extension. Visit the Trade Bonus page for details.
Extend-and-Trade
See Extend-and-Trade Rules here.