Every type of NBA contract explained — from max deals and supermaxes to two-ways, Exhibit 10s, and the veteran minimum — using the 2026-27 landscape as a guide.
The NBA runs on a soft salary cap ($164.961 million for 2026-27). Teams routinely exceed it via exceptions and rights under the 2023 Collective Bargaining Agreement. Contracts differ by length, guarantee structure, starting salary relative to the cap, and which exception or right is used. Annual raises are typically 5% (new teams) or 8% (re-signing with your own team under Bird rights). Deals can include player options, team options, early termination options, incentives (capped at 20% of base), or partial guarantees.
Rookie Scale Contracts
First-round draft picks sign predetermined four-year deals tied to draft position (usually at 120% of the official scale). Years 1–2 are guaranteed; years 3–4 are team options (exercised by October 31 of the prior season). After year 3, the player is eligible for a rookie-scale extension (up to five new years under the current CBA). If both options are picked up and no extension is signed, the player becomes a restricted free agent after year 4 (team can match offers).
Examples: Victor Wembanyama’s five-year max extension with the Spurs (starting 2027-28, roughly $255 million) is a classic rookie-scale max. Chet Holmgren and Jalen Williams each have roughly $239 million deals starting in 2026-27. Lower picks get far less; the scale drops sharply after the lottery.
Second-round picks have more flexibility. Teams can use the Second Round Pick Exception for multi-year deals near the minimum or simply sign them as undrafted free agents.
Maximum Contracts (Including Supermax / Designated Player Deals)
The “max” is a percentage of the salary cap based on years of service for the first year of a new deal or extension, then fixed raises:
- 0–6 years of service: 25% of the cap ($41.24 million starting in 2026-27).
- 7–9 years: 30% ($49.49 million).
- 10+ years: 35% ($57.74 million).
A player’s own team can offer five years (or sometimes more in extensions) with 8% raises; other teams are limited to four years with 5% raises. The actual number can also be the greater of the percentage or 105% of the player’s prior salary.
Rose Rule (Designated Rookie / 5th-year 30% max): A player finishing a rookie-scale deal (or with four years of service re-signing with his team) can jump to the 30% tier early if he makes All-NBA (most recent season or two of the prior three), wins Defensive Player of the Year (same windows), or wins MVP in any of the prior three seasons.
Supermax (Designated Veteran Player): Players with 7–9 years of service who meet the same performance criteria and have stayed with (or were traded to early) their original team can start at 35% of the cap instead of 30%. This is what people mean by “supermax.”
Examples:
- Jayson Tatum’s $313.9 million Celtics supermax is the largest total contract on record.
- Stephen Curry’s $62.6 million 2026-27 salary exceeds a fresh 35% max because of built-in 8% raises from an earlier deal.
- Nikola Jokic ($59 million), Giannis Antetokounmpo, Anthony Davis, and Tatum all sit near or above the 10+ year tier.
- Chet Holmgren, Jalen Williams, and Austin Reaves are at or near the 0–6 year max ($41.24 million).
- Donovan Mitchell’s ~$276 million deal with the Cavaliers and Devin Booker’s supermax are other massive examples.
Teams above certain aprons face restrictions on using these in trades or sign-and-trades.
Veteran Minimum Contracts
Any team can always sign a player to the minimum salary (scaled by years of NBA service). For 2026-27:
- 0 years: ~$1.36 million
- 2 years: ~$2.45 million
- 5 years: ~$2.85 million
- 10+ years: ~$3.88 million
On one-year minimums for players with 3+ years of service, the team’s cap/tax hit is only the 2-year minimum (~$2.45 million); the league reimburses the difference. This encourages teams to keep veterans. Two-year minimums do not get the same reimbursement.
Example: LeBron James signed a two-year veteran minimum (~$8 million total) with the 76ers — a dramatic departure from his usual max deals. Contenders over the second apron frequently fill the end of the roster this way.
Mid-Level Exception (MLE) and Related Exceptions
These let teams over the cap add players without using cap space.
- Non-Taxpayer MLE: Up to $15.044 million starting salary in 2026-27, up to four years. Using more than the taxpayer portion hard-caps the team at the first apron (~$209 million).
- Taxpayer MLE: Smaller (~$6.064 million), up to two years. Available to teams above the first apron (but not above the second in many cases).
- Room MLE: For teams that dip under the cap to use space (~$9.366 million, up to three years).
- Bi-Annual Exception (BAE): ~$5.477 million, up to two years, available only every other year and only if the team stays under the first apron. Using it hard-caps the team.
Examples: Many 2026 offseason deals (Jock Landale, Mitchell Robinson, Dorian Finney-Smith, etc.) used the non-taxpayer MLE. Teams that used the BAE in 2025-26 (Hornets, Pistons, Lakers, Jazz, Wizards) cannot use it again in 2026-27.
Two-Way Contracts
Teams can carry up to three players on two-way deals (in addition to the 15-man standard roster). Eligible players have three or fewer years of service. They can be active for up to 50 regular-season games, split time with the G League affiliate, and are ineligible for the playoffs. Salary is half the rookie minimum (~$678,882 in 2026-27) and does not count against the cap. Teams can convert a two-way to a standard contract.
These are developmental tools. Many players begin on Exhibit 10 deals and get converted if they impress in camp.
Exhibit 9 and Exhibit 10 Contracts
These are one-year, fully non-guaranteed minimum training-camp deals that do not count against the cap until the regular season starts. Teams can carry several at once.
- Exhibit 10: Allows conversion to a two-way contract before the season. If the player is waived and spends 60 days with the team’s G League affiliate, he receives a bonus (up to ~$85,000–$91,000 depending on the year).
- Exhibit 9: Injury protection. If the player gets hurt in camp and cannot pass a physical, the team only owes ~$15,000 instead of the full minimum salary.
Many camp contracts include both. Players frequently get waived after camp; some convert to two-ways or stick on the standard roster.
Other Common Contract Features and Types
- 10-day contracts: Short-term minimum deals (usually after January 5) for emergency depth. Can be successive.
- Sign-and-trade: A free agent signs with his old team and is immediately traded. Allows the acquiring team to offer more than it otherwise could; hard-caps the acquiring team at the first apron in many cases. Walker Kessler’s move to the Lakers is an example.
- Bird rights / Early Bird / Non-Bird: Allow a team to re-sign its own free agents over the cap (Full Bird after three seasons with the team, Early Bird after two). Raises can be higher (8%). Austin Reaves’ four-year, $180 million deal with the Lakers used Bird rights.
- Partially or non-guaranteed deals: Common for end-of-roster players. Guarantees can trigger on certain dates or based on games played.
- Incentives and bonuses: Likely bonuses count against the cap; unlikely ones do not (until earned). Maximum overall bonus percentage is 20%.
How It All Fits Together
A contending team might have a supermax star (Tatum, Curry, Jokic), a couple of other max or near-max players, role players on the non-taxpayer MLE or Bird rights deals, veterans on minimums, and three two-ways developed via Exhibit 10 camp deals. Teams near or over the second apron (~$221.7 million) lose the MLE, BAE, and many trade tools, forcing reliance on minimums and internal development.
The system rewards continuity (Bird rights, designated player rules) while giving every team tools to add talent above the soft cap. Understanding which exception or right is used explains why one player makes $60 million and another on the same team makes the veteran minimum.
