ARTICLE VIII:
ROOKIE SCALE
INDEX
Section 1. Rookie Scale Contracts
for First Round Picks
Section 2. Rookie Contracts for
Later-Signed First Round Picks
Section 3. Loss of Draft Rights
Section 4. Players Drafted Prior
To 2005
Section 1. Rookie
Scale Contracts for First Round Picks.
(a) Each
Rookie Scale Contract between a Team and a First Round
Pick shall cover a period of two (2) Seasons, but shall
have an Option in favor of the Team for the player’s
third Season and a second Option in favor of the Team
for the player’s fourth Season. The Option for
the player’s third Season shall be exercisable
during the period from the day following the last day
of the first Season through the immediately following
October 31. The Option for the player’s fourth
Season shall be exercisable during the period from the
day following the last day of the second Season through
the immediately following October 31. Such Options shall
be exercisable by notice to the player that is either
personally delivered to the player or his representative
or sent by pre-paid certified, registered, or overnight
mail to the last known address of the player or his
representative, signed by the Team, informing the player
that the Team has exercised such Option.
(b)
(i) The Rookie Salary Scale applicable to a First
Round Pick is determined by the first Season to
be covered by the player’s Rookie Scale Contract.
Accordingly, for example, if a player’s Rookie
Scale Contract commences with the 2005-06 Season,
the 2005-06 Rookie Salary Scale shall apply. Within
a particular Rookie Salary Scale, a First Round
Pick’s applicable Rookie Scale Amounts are
determined by the player’s selection number
in the NBA Draft. Accordingly, for example, the
Rookie Scale Amounts applicable to the eighth player
selected in the first round of the NBA Draft shall
be those specified in the applicable Rookie Salary
Scale for the eighth pick. Notwithstanding anything
to the contrary in this Section 1(b)(i) or in Section
1(b)(ii) below, beginning on January 10 of each
Season, an unsigned First Round Pick’s applicable
Rookie Scale Amount for such Season shall be reduced
daily through the end of the Regular Season by the
product of the applicable Rookie Scale Amount (as
set forth in Exhibit B annexed hereto) multiplied
by a fraction, the numerator of which is one (1)
and the denominator of which is the total number
of days in such Regular Season.
(ii) Notwithstanding Section 1(b)(i) above, if,
pursuant to any provision of this Agreement or the
NBA Constitution and By-Laws, one (1) or more Teams
is required to forfeit one (1) or more draft picks
in the first round of a particular NBA Draft, then:
(A) the Rookie Salary Scale for the Salary Cap
Year immediately following such Draft shall be
adjusted by removing one (1) or more Rookie Scale
Amounts from the middle of the Rookie Salary Scale,
as follows: if one (1) first round pick is forfeited,
then the Rookie Scale Amounts that would have
been applicable to the 15th player selected in
the first round (absent any forfeiture of picks)
(hereinafter, the "15th Pick") shall
be removed from the Rookie Salary Scale; if two
(2) first round picks are forfeited, then the
Rookie Scale Amounts applicable to the 15th Pick
and the pick immediately following the 15th Pick
shall be removed from the Rookie Salary Scale;
if three (3) first round picks are forfeited,
then the Rookie Scale Amounts applicable to the
15th Pick and the picks immediately preceding
and immediately following the 15th Pick shall
be removed from the Rookie Salary Scale; and if
more than three picks are forfeited, additional
Rookie Scale Amounts shall be removed from the
Rookie Salary Scale in accordance with the foregoing
procedure; and
(B) the Rookie Scale Amounts applicable to players
selected in such Draft shall be determined by
their selection number under the Rookie Salary
Scale as adjusted by Section 1(b)(ii)(A) above.
Accordingly, for example, if one First Round Pick
were forfeited in the first round of the 2006
Draft, the applicable Rookie Scale Amounts would
remain unchanged for the first 14 picks, and the
Rookie Scale Amounts applicable to the remaining
15 picks in the first round would be the Rookie
Scale Amounts that (absent any forfeiture of picks)
would have been applicable to picks 16 through
30.
(c)
(i) A Rookie Scale Contract shall provide in each
of the two (2) Seasons covered by the Contract and
the first Option Year at least 80% of the applicable
Rookie Scale Amount in Current Base Compensation.
Components of Salary in excess of 80%, if any, are
subject to individual negotiation, except that (i)
in no event may Salary plus Unlikely Bonuses for
any Salary Cap Year exceed 120% of the applicable
Rookie Scale Amount, and (ii) a Rookie Scale Contract
may not provide for a signing bonus (except for
an “international player” payment in
excess of $500,000 made in accordance with Article
VII, Section 3(e)) or a loan. A Rookie Scale Contract
may provide for a payment schedule in any Season
that is more favorable to the player than that called
for under paragraph 3 of the Uniform Player Contract,
subject to the other provisions of this Agreement.
(ii) A Rookie Scale Contract must provide for Compensation
protection for lack of skill and non-insured injury
or illness in each of the two (2) Seasons covered
by the Contract and the first Option Year to the
extent of not less than 80% of the applicable Rookie
Scale Amount. Consistent with the provisions of
Article II, Section 4, a Team and a First Round
Pick may negotiate additional conditions or limitations
applicable to the player’s Base Compensation
protection, except that lack of skill and non-insured
injury or illness protection to the extent of at
least 80% of the applicable Rookie Scale Amount
in each of the first two (2) Seasons and the first
Option Year shall contain no such individually-negotiated
additional conditions or limitations.
(iii) The terms and conditions that apply to the
second Option Year shall be unchanged from all terms
and conditions that applied to the player’s
first Option Year (including but not limited to
the percentage of Base Compensation that is protected),
except that the Salary, (excluding Incentive Compensation),
Likely Bonuses and Unlikely Bonuses for the second
Option Year shall be increased over the Salary (excluding
Incentive Compensation), Likely Bonuses and Unlikely
Bonuses, respectively, for the first Option Year
by the applicable percentage specified in Exhibit
B hereto.
(d) Notwithstanding any other provision of this Agreement,
if a trade of a Rookie Scale Contract would, by reason
of a trade bonus contained in such Contract, cause
the player’s Salary plus Unlikely Bonuses for
the Salary Cap Year in which such trade occurs to
exceed 120% of the player’s applicable Rookie
Scale Amount for such Salary Cap Year, such player’s
trade bonus shall be deemed amended to the extent
necessary to reduce the player’s Salary plus
Unlikely Bonuses for such Salary Cap Year to 120%
of the applicable Rookie Scale Amount.
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Section 2. Rookie
Contracts for Later-Signed First Round Picks.
Except as provided in Section 3 below, a First Round
Pick who does not sign with the Team that holds his
draft rights for any portion of the three (3) Seasons
following the NBA Draft in which he was selected (and
who did not play intercollegiate basketball during such
period) may enter into either (a) a Rookie Scale Contract
in accordance with Section 1 above, or (b) if the Team
has Room in excess of the applicable first-year Rookie
Scale Amount, a Contract covering no fewer than three
(3) Seasons that provides for Salary plus Unlikely Bonuses
in the first Salary Cap Year up to the amount of the
Team’s Room and increases or decreases in Salary
and Unlikely Bonuses in subsequent Salary Cap Years
in accordance with Article VII, Section 5(c)(1).
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Section 3. Loss
of Draft Rights.
If for any reason a Team fails to make a Required Tender
to a First Round Pick in accordance with Article X,
withdraws a Required Tender to a First Round Pick in
accordance with Article X, or renounces a First Round
Pick in accordance with Article X, or if a First Round
Pick selected in a Subsequent Draft does not sign a
Contract for a period of one (1) year following such
Subsequent Draft in accordance with Article X, then
the rules set forth in Sections 1 and 2 above shall
not apply, and such First Round Pick shall become a
Rookie Free Agent. In addition, any Team that fails
to make a Required Tender to a First Round Pick, withdraws
a Required Tender to a First Round Pick, renounces a
First Round Pick, or fails to sign within one (1) year
a First Round Pick selected in a Subsequent Draft shall
be prohibited from signing such player until after he
has signed a Player Contract with another NBA Team,
and either (a) the player completes the playing services
called for under the Contract, or (b) the Contract is
terminated in accordance with the NBA waiver procedure.
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Section 4. Players
Drafted Prior To 2005.
In lieu of entering into a Rookie Scale Contract in
accordance with Section 1 above, a First Round Pick
who was drafted prior to the 2005 NBA Draft and the
Team that possesses the exclusive rights to negotiate
with such player may agree to enter into a Rookie Scale
Contract in accordance with the rules set forth in Section
1 above but modified as follows: (a) the Contract shall
cover a period of three (3) Seasons, but shall have
an Option in favor of the Team for the player’s
fourth Season; (b) with respect to the third Season
covered by such Contract, the rules set forth in Section
1(c) above with respect to the first Option Year shall
apply; and (c) the player’s applicable Rookie
Scale Amounts for all Seasons covered by such Contract
(including the Option Year) shall be those set forth
in the Rookie Salary Scale contained in the 1999 NBA/NBPA
Collective Bargaining Agreement for the Season following
the date on which the player was drafted.
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