In the coming weeks, you’ll surely hear a lot about max contracts.
But how much are they actually worth?
It depends and can vary a great deal.
That’s an unsatisfying answer, but if you’re looking for clarity on the term, it’s necessary to understand.
To start, maximum salaries are based on the salary cap and experience. Experience levels are split into three groups: 0-6 years, 7-9 years and 10+ years. The more experienced the group, the greater percentage of the salary cap that forms a max contract.
However, a free agent can always get 105% of his previous salary – even if that’s more than his experience calls for. This year, four potential free agents – including those who’ve already stated their intention to opt in – are or would have been eligible for a higher max than prescribed by their experience level.
Only the first year of a new contract follows that rule. After that, players who re-sign can get 7.5% raises and players who leave can get 4.5% raises. Players who re-sign can also get five-year contracts, and players who leave can get just four years.
Larry Coon’s FAQ have more information on max contracts if you’re interested.
Based on the projected salary cap of $63.2 million, here’s what max contracts would be based on experience and the four exceptions:
0-6 years
| Year | Re-sign | Leave |
| One | $14,756,881 | $14,756,881 |
| Two | $15,863,647 | $15,420,940 |
| Three | $16,970,413 | $16,085,000 |
| Four | $18,077,179 | $16,749,060 |
| Five | $19,183,945 | |
| Total | $84,852,064 | $63,011,880 |
7-9 years
| Year | Re-sign | Leave |
| One | $17,708,257 | $17,708,257 |
| Two | $19,036,376 | $18,505,128 |
| Three | $20,364,495 | $19,302,000 |
| Four | $21,692,615 | $20,098,871 |
| Five | $23,020,734 | |
| Total | $101,822,477 | $75,614,256 |
10+ years
| Year | Re-sign | Leave |
| One | $20,659,633 | $20,659,633 |
| Two | $22,209,105 | $21,589,316 |
| Three | $23,758,578 | $22,519,000 |
| Four | $25,308,050 | $23,448,683 |
| Five | $26,857,523 | |
| Total | $118,792,889 | $88,216,633 |
Dirk Nowitzki (probably won’t get the max)
| Year | Re-sign | Leave |
| One | $23,857,450 | $23,857,450 |
| Two | $25,646,759 | $24,931,035 |
| Three | $27,436,068 | $26,004,621 |
| Four | $29,225,376 | $27,078,206 |
| Five | $31,014,685 | |
| Total | $137,180,338 | $101,871,312 |
Amar’e Stoudemire (declining his early-termination option)
| Year | Re-sign | Leave |
| One | $22,763,888 | $22,763,888 |
| Two | $24,471,179 | $23,788,263 |
| Three | $26,178,471 | $24,812,638 |
| Four | $27,885,762 | $25,837,012 |
| Five | $29,593,054 | |
| Total | $130,892,354 | $97,201,800 |
Carmelo Anthony (already committed to opting out)
| Year | Re-sign | Leave |
| One | $22,458,402 | $22,458,402 |
| Two | $24,142,782 | $23,469,030 |
| Three | $25,827,162 | $24,479,658 |
| Four | $27,511,542 | $25,490,286 |
| Five | $29,195,922 | |
| Total | $129,135,810 | $95,897,375 |
Rudy Gay (opting in)
| Year | Re-sign | Leave |
| One | $18,783,379 | $18,783,379 |
| Two | $20,192,132 | $19,628,631 |
| Three | $21,600,885 | $20,473,883 |
| Four | $23,009,639 | $21,319,135 |
| Five | $24,418,392 | |
| Total | $108,004,427 | $80,205,027 |
The NBA will announce its official salary cap in July, and I’ll update these figures then.
In the meantime, if you’re projecting which teams have room to sign Melo, LeBron James or any other high-level player, these are good baselines for knowing how much cap room is necessary.