One of the most complicated parts of the NBA for fans is the ins and outs of team building during the offseason. There are complex rules about what a team can and can’t do with certain players, how much a team can offer a free agent, what happens when a team goes into the luxury tax and much more.
I write a lot about the particulars of these rules, but one of the common requests I’ve received at BSJ is to simplify an explanation of these tricky CBA rules and terms and how they apply to the Celtics. Over the upcoming month, we will take a weekly look at some of the common phrases and rules I used that are involved in the collective bargaining agreement and try to make them easier to understand so it’s easier to break down the options the Celtics or another team has with their players in any offseason. Here's what we've examined thus far:
Understanding trade rules and restrictions: What Celtics can and can't do this season
Understanding Cap Holds: What they mean and how they impact the Celtics' future
Understanding Bird Rights: What they mean and how they impact the Celtics' future
Understanding restricted free agency: Exploring the Celtics' options with Jaylen Brown
Today, we will take a look at rookie contracts in the NBA. The Celtics will have at least four rookies on their 15-man roster next season and potentially more depending on whether Tremont Waters, Tacko Fall or another youngster earns a spot on the 15-man roster.
With the Celtics electing to use so many of their draft picks (four) in the 2019 NBA Draft, their contracts are now a pivotal part of the team’s building plan moving forward, both as contributors and potential future trade assets. With that in mind, let’s break down the particulars on rookie contracts and how they will end up impacting the Celtics over both the short and long haul.
Do first-round picks get to negotiate contracts?
Unlike the NFL or MLB, there is a set structure for every player picked in the first round due to the CBA. For each draft slot, there is a particular percentage of the salary cap attached that represents a player’s salary for each season.
A team can and almost always do offer 120 percent (the max) of the salary slot for each pick 1-30. The basic structure of the first-round rookie scale contract is this.
First two years: Guaranteed
Third year: Team option
Fourth year: Team option
When does a team have until to pick up the team option on a rookie contract?
It must happen a full year in advance on rookie-scale deals. For instance, Robert Williams is entering his second season this fall but the Celtics but make a decision by October 31st whether or not they want to pick up his third-year option (worth $2.0 million) for the 2020-21 season.
This type of team option gives a player some extra security or foresight while playing on their rookie deal about their future. Sometimes, the decision is very easy for a team (i.e. picking up Jayson Tatum’s fourth-year option). Other times, it’s a tough choice as a team elects to balance out projecting a player’s value and development versus future salary cap flexibility and roster spots. That’s why team options on fringe players in recent years (Guerschon Yabusele, James Young, RJ Hunter) have been tough for Boston’s front office. The team picked up a third-year option on Yabusele last fall but that ended up being a mistake as they cut him this summer.
What about the second-round picks? Are they paid on a set scale?
No, unlike first-round picks, there is no salary structure for each pick in the second round. Instead, teams can tender the rookie minimum for a two-year deal or sign second-round players with a portion of their salary cap room or exceptions (such as the mid-level). The benefit of using these tools is that it allows second-round picks to sign longer deals (up to four years) before they hit restricted free agency, as opposed to the two-year deals on a minimum offer. The Celtics went the former route with Carsen Edwards this summer with a four-year deal that features three fully guaranteed years. Second-round picks are also open to sign two-way deals, just like Tremont Waters did this season. This is a common path for players taken in the final 10 picks of a draft to get a contract.
What about international rookies like Vincent Poirier?
The Celtics have added a couple of foreign bigs in recent seasons in Daniel Theis and more recently in Poirier. These players are subject to the same rules as any free agent but they also become a restricted free agent once their initial contract expires, just like a draft pick. That means the Celtics will have restricted rights on Poirier if they extend him a qualifying offer after his two-year deal expires.
How many current Celtics are on rookie deals still?
Seven players that are expected to make the final roster are currently on rookie deals.
Fourth season: Jaylen Brown
Third season: Jayson Tatum, Semi Ojeleye
Second season: Robert Williams
First season: Romeo Langford, Grant Williams, Carsen Edwards
The players battling for the final roster spot (Javonte Green, Tacko Fall, etc.) will also be on a rookie minimum deal if they make the team.
Do the Celtics have any tough decisions coming up with their rookie contracts involving team options?
Not really. Team options for Tatum ($9.8 million) and Rob Williams ($2.0 million) are no brainers. Williams’ fourth-year option is very cheap ($3.6 million) as well for 2021-22 so it’s hard to see Boston declining that next fall unless he completely flops this year.
Elsewhere, Ojeleye has a team option for $1.7 million that’s due by July 1st for the 2020-21 season that seems like a lock to get picked up given his defensive value.
With Langford, Williams and Edwards all on bargain deals until 2022, the Celtics have a roster stock full of cheap young talent. The hope now is that one or more of them will flourish while on that rookie deal to create some bargain production for Boston or develop into a valuable trade asset over the long-term.