What exactly is a ‘supermax’ contract?
You’ve heard all about it for weeks now, but what exactly is the supermax extension that Giannis Antetokounmpo has been staring down?
The official name is the Designated Veteran Player Extension. Antetokounmpo was eligible to sign the blockbuster deal between the start of the NBA offseason (Nov. 22) up until the start of the 2020-21 season (Dec. 21), and he’ll be able to revisit the extension once the subsequent offseason begins.
But he’ll be an unrestricted free agent and have the opportunity to sign elsewhere, too, which is why there’s so much consternation over his signature before other teams are able to swoop in and tempt Antetokounmpo.
One thing other teams cannot offer Antetokounmpo is more money than the Bucks. . Here’s how it works.
Eligibility
In broad strokes, the “max contract” is the most money a team is allowed to give a player under the rules of the NBA salary cap. A supermax is even more, but it’s available only to certain players.
Per the most recent NBA collective bargaining agreement in 2017, players eligible must have met these criteria:
• Must be on the team he was with at the end of his rookie contract
• Must be entering his eighth, ninth or 10th year
• Must either win MVP in one of three most recent seasons OR
• Win Defensive Player of the Year in most recent season or two of the past three seasons OR
• Make an All-NBA team in the most recent season or two of the past three seasons
In other words, you have to be with the team where you started your career (the whole point of this structure is to help teams keep their superstars), you have to have met the service-time threshold (which Antetokounmpo did once the 2019-20 season was complete) and be a recent MVP or really recent Defensive Player of the Year or All-NBA team. Antetokounmpo is all three.
What’s offered
The Bucks have exclusive rights right now to offer Antetokounmpo a five-year deal worth somewhere in the $220-250 million neighborhood.
It’s not just a flat dollar amount because the deal can be worth up to 35% of the salary cap with an 8% escalation in each subsequent year, so he can make more money (or less) based on how much more money is available for the team to spend.
It would be the richest contract in NBA history regardless.
What other teams can offer
Another team can’t sign Antetokounmpo for the same length or dollar amount; at most, all he could secure is a four-year deal worth between $140-160 million (30% of the cap). Huge difference, right? Of course, the question is whether Antetokounmpo would seek a situation that he views as closer to a championship, especially because he’s already commanded a fair amount of money in his career. He signed a fouryear, $100 million contract in 2016 that is, as everyone knows, set to expire after this year.
Why can’t he sign during the season?
The disadvantage the Bucks have is that NBA rules stipulate that teams cannot offer the supermax during the season, even though many lesser contracts can be offered. Which means if he doesn’t sign prior to the start of the NBA season, he’ll be waiting until everything has played out, postseason and all, before getting another crack at it.
Waiting might be a more financially prudent move, since Antetokounmpo and his agents will have a better handle on the salary cap structure and a better idea of how much the supermax contract will actually be worth. Given the circumstances of the pandemic, it’s not the most concrete picture right now.
They’d also have a better view of how the roster will come together and will see for certain if the Bucks are willing to make moves to enhance their chances at a title.