What Do NBA Draft Picks Get Paid? A Comprehensive Guide for Sports Fans
As an avid NBA fan, you probably tune into the NBA draft every year to see the futures stars get selected by teams. But have you ever wondered just how much money these rookies make? From multi-million dollar salaries to massive endorsement deals, let‘s take a deep dive into how the NBA rookie pay system works.
How Salaries Are Determined in the Draft
All first round picks sign contracts based on the NBA‘s rookie salary scale, which sets standard salaries for each draft slot. This scale, which increases by a fixed percentage each year, determines the first year salary.
Here‘s a look at the average first year salaries by draft position over the past 5 years:
As you can see, the higher the draft selection, the bigger the payday! These rookie scale amounts increase by about 5-10% each season over a 4-year deal.
Meanwhile, second round picks receive non-guaranteed contracts with negotiable salaries. These deals can start as low as the NBA minimum salary, which was $925,258 in 2021.
Lucrative Signing Bonuses
In addition to their first year salary, all first rounders also get a nice chunk of change just for signing on the dotted line. Here are the signing bonuses for recent top 3 draft picks:
| Draft Year | Pick | Signing Bonus |
|---|---|---|
| 2021 | 1. Cade Cunningham | $17,134,520 |
| 2021 | 2. Jalen Green | $15,193,640 |
| 2021 | 3. Evan Mobley | $13,750,800 |
| 2020 | 1. Anthony Edwards | $9,745,840 |
| 2020 | 2. James Wiseman | $7,744,960 |
| 2020 | 3. LaMelo Ball | $7,148,200 |
As you can see, the top signing bonuses can exceed $17 million! This extra cash is a nice perk for players before they even step on the court.
Salary Growth in First Contract
Rookie wages increase each year of a player‘s first contract. Using the rookie salary scale, first year wages typically grow as follows:
- Year 2: 120% of Year 1
- Year 3: 140% of Year 1
- Year 4: 160% of Year 1
So a #3 pick like Evan Mobley earning $7.2 million in Year 1 could make around $11.5 million by Year 4 – a sweet 60% raise!
Lucrative Endorsement Earnings
For the top draft picks, endorsement deals allow them to earn far more than their rookie salary alone.
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In 2003, LeBron James earned $12.9 million from the Cavs as the #1 pick, plus $40 million from Nike over 5 years.
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Zion Williamson signed $75 million in endorsements with Jordan Brand, Gatorade and 2K Sports – dwarfing his $44 million 4-year salary!
As rookies gain fame, their endorsement earnings dramatically outpace rookie wages. Marketable stars can supplement salaries with tens of millions in off-court deals.
How Salary Caps Impact Rookie Deals
Since the NBA has a salary cap, the rookie wage scale keeps costs low for first rounders. This frees up "cap space" for teams to sign veterans.
However, when teams are over the cap, they gain exceptions that enable signing drafted rookies over the cap. There are also "rookie extension scales" governing pay for a first rookie extension.
Trade Kickers and Player Options
Beyond base salary, some negotiated rookie benefits include:
- Trade kickers: Bonus % if traded
- Player options: Player can opt into final year
- No trade clauses: Player approval required for trade
High picks often get perks like 15% trade kickers from teams, so they earn a bonus if dealt. Player options also secure them more guaranteed years.
Notable Second Round & Undrafted Players
While first rounders get the glitz and glam, some later picks still shine:
- Isaiah Thomas: Final pick in 2011 draft. 2x All-Star.
- Marc Gasol: 48th pick in 2007. 2013 Defensive Player of Year.
- Ben Wallace: Undrafted. 4x Defensive Player of Year.
So while draft position dictates rookie salary, work ethic and skill ultimately determine career success!
Rookie Pay in Other Sports
If you‘re wondering how NBA rookie pay compares across leagues, here are some basics:
- NFL: Wage scale by draft order. Signing bonuses up to $25 million for top picks.
- MLB: Signing bonuses up to $8 million but no wage scale. Renegotiate after 6 years.
- NHL: Wage scale with small signing bonuses. Renegotiate after 3 years.
The NBA system guarantees the most years, highest signing bonuses, and biggest rookie wages overall!
Let me know if you need any clarification or have additional questions on how draft picks get paid! I‘m always happy to discuss the ins and outs of sports business.