The first year of a contract is permitted to include a sum of salary and unlikely bonuses up to the maximum salary limits. The 2017 CBA defines the maximum salary limits as a function of the players years of service (YOS).
0-6 Years of ServiceMaximum of:
- 25% of the Salary Cap
- 105% of the salary for the final Season of the player’s prior contract
Exception: Players who meet the following are eligible for the "Fifth Year 30% Max Salary" exception and can instead earn 30% of the salary cap- Has earned four years of service at the end of their most recent contract, and
- Has met one of the following:
- Named to the All-NBA first, second, or third team
- Named Defensive Player of the Year, in the immediately preceding Season or in two (2) Seasons during the immediately preceding three (3) Seasons
- Named NBA MVP during one of the immediately preceding three (3) Seasons
7-9 Years of ServiceMaximum of:
- 30% of the Salary Cap
- 105% of the salary for the final Season of the player’s prior contract
Exception: Players who are eligible for the Designated Veteran Player Contract can earn up to 35%10+ Years of ServiceMaximum of:
- 35% of the Salary Cap
- 105% of the salary for the final Season of the player’s prior contract