Here is a helpful link showing NBA draft scale. Only the first round draft choices get a guarantee. Interesting what it said about agents and the risks they take. The players are very reliant on having a good agent because if they go in the first round, the agent's ability determines their salary between the scale rate of 80 to 120%. If the player goes after the first round, it is all in the agent's hands to get anything at all (especially a guarantee) for the player. Agents pick up all preparation costs, and that can add up quickly. Kind of makes you wonder if bad agents even want to spend a dime on players before the draft.
The Structure of NBA Rookie Contracts ↗
If we look back at our recent OADs... Henry, Selby, Wiggins and Embiid... it looks like everyone except Selby got something reasonable out of leaving early.
This same model is valuable in understanding ALL players that leave early, not just OADs. For example, the twins both scored decent cake on their early KU exit.
“Only a few agents still charge fees for negotiating a rookie contract since the first-round salaries are required to be no less than 80% of the salary scale number, and no greater than 120%."
I'm guessing a lot of the young OAD players are just looking at that #30 draft spot and thinking it is the "worst case scenario" and they are satisfied knowing they will get somewhere between $800,000 up to $1.15m for turning pro.
Even though I'm unhappy Kelly is leaving, how much of a chance is there that he doesn't go 1 thru 30 in the draft?
What about those kids drafted after #30? How many of those kids sign a contract? Guarantees? It must feel like "bait and switch" for these unfortunate players. The line is drawn in the sand (actually, carved in the hardwoods) and if you end up on the wrong side of the line your ability to earn a living in the league starts shrinking dramatically. Players like Josh Selby can go to Superman Camps and improve their game, but finding an inland path to signing a contract is very very difficult.
This system doesn't seem fair at all. Especially since it is aimed at players so young. Most of these kids have never made a single dollar in their lives before (outside of their scholarship stipend), so how much is $800,000 to one of these kids? I bet they think they can retire on it. Did anyone tell them this is pre-tax numbers? And what is the cost of living in a major city? Entourage fees? Family members with their hands out? Expected style of living perspective from being in the league? Lexus? New expensive girlfriend?
I'm pretty sure a salary of $800,000 is the very basic salary needed just to make it through a year of basketball in the league. And when all that money is gone, and the kids don't sign the important contract (contract #2) how are they going to keep up on the payments for all that baggage they picked up in such a short period?
I just hope the first thing a guy like Kelly does when the check clears is he buys his dad a house. A cash purchase. So if he blows the rest of it and doesn't score a second contract at least him and his dad have something from all of this.
European basketball helps a few more players, but not as many as you think.
