NBA rookie scale contract is the entry-level contract in the NBA where first-round draft picks are offered with a standard deal with the team. The rookie scale contract serves as the official welcome package for first-round draft picks in the NBA.

Due to this contract players can have financial security which allows them to focus on the development of their skills and talent without the immediate pressures of year-to-year negotiations.

We will dive into this article and talk about NBA rookie scale contracts and what are the other types of contracts in the NBA like Uniform Player Contracts, Standard NBA Contracts, and Options.

What is an NBA rookie scale contract?

The rookie scale contract is designed for first-round draft picks entering the league. The basic period for a rookie contract is four years. But teams hold options on the third and fourth years of the contract. This allows them to extend promising players for an additional two seasons if they show potential.

So player should have to improve their potential with time.

Discussing NBA rookie salary, the NBA and the National Basketball Players Association (NBPA) negotiate the rookie salary scale. Depends on which draft pick players get their salary. First-round picks can be signed for as low as 80% or as high as 120% of the rookie scale.

GETTY IMAGE / SUZANNE CORDEIRO / AFP

Largest Contract in the NBA History

What are the 5 types of contracts in NBA?

NBA has different types of contracts so the player can get the best deal at different stages of their careers and navigate the salary cap.

Rookie Scale Contract

This is the entry point for first-round draft picks. It offers a four-year term with team options for the third and fourth years. If a player shows his potential in the first two years then the team will think about next year with a contract extension. Salary is fixed according to the draft position.

Standard NBA Contract or Uniform Player Contract

Standard NBA Contract, also known as a Uniform Player Contract. It is a standard agreement between an NBA team and its players. In this contract, the team offers to the selected player, training season, exhibition games, regular season, playoffs, and any other official series the club participates in.

The player receives payment from the team for their services. The contract specifies the precise amount. Payment is required on the scheduled date, regardless of the club’s home or away game. If the player is only with the club for part of the championship season, their pay is modified.

For example, Jayson Tatum’s recent contract with the Boston Celtics spans five years (from 2025 to 2029) and is worth an impressive $313,933,410, with an average annual value of $62,786,682

Two-Way Contract

This relatively new type of contract allows teams to carry two additional players who can split their time between the NBA roster and the G League, the NBA’s developmental league.

This provides an opportunity for young players to gain valuable experience and refine their skills without taking up a full NBA roster spot. Any Uniform Player Contract that isn’t a Two-Way Contract falls into the Standard NBA Contract category.

Designated Veteran Player Contract

A Designated Veteran Player Contract (also known as a “super-max” deal) is a special type of contract between a team and a free agent. It applies to players with 8 or 9 years of service in the league.

These contracts cover five seasons. Once signed, the player cannot be traded for one year.

This short-term contract may be extended to experienced players reaching the end of their careers. The base salary is below the standard minimum, but it can still be a useful opportunity for veterans looking for a championship run or to advance their careers with a new squad.

According to the NBA’s Collective Bargaining Agreement (CBA), a “veteran” is someone who has signed at least one Player Contract with an NBA team, regardless of the contract’s length

The Boston Celtics and Jayson Tatum agreed on a five-year, $315 million supermax extension, making it the largest contract in NBA history

Options Contract

The player option allows the player to choose whether to stay for a further year or become an unrestricted free agent. Example: If a player has a three-year contract with a fourth-year player option, choosing the option extends the contract until the fourth season or else becomes a free agent.

A team option allows the team to keep a player for an additional season. A team option permits the team to keep a player for another season. For example, if a player signs a three-year contract with a team option for a fourth season, exercising the option extends the contract.

When a restricted free agent wishes to sign with a different team, they sign an offer sheet. The original team has two days to meet the terms. If not, the player joins the new team.