Restructure your NBA contract for more money and years

 

NBA contracts are not written in stone. Outside of the absolute basics of what is to be paid, when it's to be paid and for how long, almost everything else can be changed if the parties involved agree. One area where this is often seen is with NBA player contracts. These deals are rarely static, with many being renegotiated before they come close to ending.

Can nba players restructure their contracts

The most common scenario is where a player signs a long-term deal, often around 4-5 years in length. The first year of this contract sees the player paid his normal salary. The next season, however, that number jumps to 30% of their yearly salary. This continues for the next few seasons before leveling off again. That 30% amount is the player's maximum salary, and it counts against the cap regardless of what he actually earns (which will be a lot less).

The team and player can then renegotiate that second year to pay him more than 30% but not beyond his max salary. This bumps up the salary cap number for that year, which means that subsequent seasons will see a reduction to compensate.

While max salaries and their subsequent raises are the most common reason for this sort of renegotiation, it can happen with other players as well. The key is that both sides must want it to happen and they must find an amount both can live with. Players rarely take pay cuts during negotiations unless there is absolutely no other option (which is why elite players will often opt-out and re-sign for more, but we're talking about a very small minority of cases).

Restructuring can happen multiple times with the same contract if both sides agree, and they nearly always do. Restructured contracts are hardly an uncommon occurrence in the NBA.

How NBA players can restructure their contracts

This is one of the most misunderstood elements of contract renegotiation. While NBA players are indeed able to restructure their deals, there are limits to what can be done and under what circumstances this can occur.

The main restriction is that a contract cannot be extended as part of the renegotiation. A player's contract must end before it can be renegotiated, which means either an extension or a restructuring.

So, When Can NBA Players Restructure Their Contracts?

The general answer is that players can restructure their contracts whenever they want, but there are some caveats to this rule. There's an old saying in basketball that rings true in this situation, "you can't talk about the game until after it's over." This is due to the league putting a moratorium on any player contract moves during the NBA finals. You cannot renegotiate or extend a contract until all of the series are finished.

Because of this, teams will often wait until after they're eliminated from the playoffs before they start to talk about contract restructuring. They need the league to give them cap relief so that they can sign free agents and/or resign their own players, but they just don't have the room right now. So, teams will approach the player in question and ask if he would consider postponing some of his money in order to help them get closer to the salary cap.

Usually the player agrees, but not always. It's also worth noting that this is more commonly seen with teams which are under the luxury tax threshold than it is for teams which are currently over the limit. There isn't much of a point in delaying money if they already have enough of a problem getting under the tax line.

Restructuring a contract in the NBA isn't something which is commonly seen. Only a small number of players renegotiate their deals, and most of those cases involve either a max salary player or an over-the-cap team needing to clear some additional room under the salary cap.