Due to the NBA’s new collective bargaining agreement, teams now face increased restrictions when it comes to carrying players with large contracts who are either injured or no longer playing at an elite level.
As a result, franchises are being forced to exercise far more caution when it comes to contract extensions, particularly for their players.
This shift in approach became evident when the Dallas Mavericks made the shocking decision to trade away Luka Doncic rather than commit to a five-year, $345 million supermax extension that he would have been eligible for this offseason.
Remarkably, reports indicated that the Mavericks were just as fearful of Doncic signing the deal as they were of him rejecting it, underscoring the financial dilemma teams now face when handing out massive contracts.
The Philadelphia 76ers serve as a cautionary tale in this new landscape, having invested heavily in Joel Embiid and Paul George, only to find themselves burdened with what are now considered immovable contracts.
Once seen as title contenders, the Sixers are now facing a challenging reality, as their financial flexibility has been significantly restricted. Similarly, the Phoenix Suns are experiencing the downside of this new era in salary cap management.
Despite boasting two All-NBA superstars Kevin Durant and Devin Booker, their roster remains nearly impossible to fix due to second-apron constraints.
A major contributing factor is the contract of Bradley Beal, who is no longer the same player he was just a few seasons ago, making his max salary a liability rather than an asset.
Brian Windhorst, speaking on Unsportsmanlike, succinctly summed up the Mavericks’ decision-making process regarding Doncic.
“The heart of why the Mavericks didn’t pay Luka Doncic, or traded Luka Doncic, was because they didn’t want to pay him,” he explained. “At the end of the day, they did not think a $300 million investment was smart in Luka. We could spend hours debating whether that’s true or not, but that’s what they saw.”
Windhorst went on to emphasize that the league is witnessing a fundamental shift in how teams handle contract extensions.
“The idea that we are in an era where you just take all your players on your roster and just immediately pay them the max just no matter what… That era, I believe, is coming to a close,” he said.
“I believe we are just at the beginning of seeing teams getting, especially that second max contract, and just instantaneously handing it to them [is over]. And so when we watch guys in the middle of their careers… let’s see how these playoffs go and let’s see when some of these extensions come up whether those extensions get done.
“We’re in a new era right now where you cannot make a mistake on a big contract, which is the lesson that the Sixers and the Suns to a certain extent are learning right now.”
This evolving mindset will have significant ramifications for upcoming contract negotiations, as high-profile players such as Ja Morant, Trae Young, Darius Garland, and Jaren Jackson Jr. prepare for potential extensions this offseason.
While, in the past, star players often received max contracts without hesitation, front offices are now forced to weigh their financial decisions more carefully than ever before.
The consequences of a single bad contract can be devastating, limiting a team’s ability to build a championship-caliber roster.
As a result, this offseason could mark the beginning of a new trend in which franchises hesitate before locking in long-term commitments – perhaps even to their biggest stars.
NBA Teams Expected To Operate With More Caution Extending Their Own Players https://t.co/Ra8A1dcUJf
— RealGM (@RealGM) March 5, 2025
