Why Are So Many NBA Players Getting Max Contracts?

This article was interesting.  A lot of NBA players are getting max contracts, many more than usual.

That article missed the point.  They were saying “Teams are stupid to give max contracts to so many players.”

The NBA players’ union took a beating on the most recent CBA.  The salary cap was slashed from 57% to 50%, a cut of 12%. (50/57=0.88)

The “maximum salary” was also cut by approximately 12%.

The new CBA also had a clause that says “For the first 2 years, the cap number is equal to the number on the previous CBA.”  This year’s cap is effectively lower than last year’s cap.  Adjusting for inflation and increased revenue, the maximum salary is less this year compared to previous year.

It’s simple arithmetic.  If the “maximum salary” is cut by 12%, then many more players will get a max contract.

It isn’t because teams are stupidly handing out max contracts to undeserving players.  The max salary was cut.  Therefore, more players are now worth the maximum salary.

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