How Much Money does a top 10 Pick in the NBA Draft Get?

By Edcel Panganiban January 13, 2024 06:56

The NBA draft is an exciting time for basketball fans and players alike. For those who are fortunate enough to be selected in the top 10 picks, the financial rewards can be significant. Let's delve into the details of how much money a top 10 pick in the NBA draft can expect to earn.

Rookie Scale Contracts

Structure

The NBA operates under a rookie scale contract system, which is a predetermined salary based on a player's draft position.
The scale is structured to provide higher salaries for players selected with earlier picks and lower salaries for those picked later in the draft.

Salary

The salary for a top 10 pick is determined by a combination of the player's draft position and the NBA's salary cap for that year.
The first overall pick typically receives the highest salary, followed by subsequent picks in descending order.

Guaranteed Money

Guaranteed Contracts

Players selected in the top 10 of the NBA draft are almost always guaranteed a contract.
These contracts ensure that the player will receive a predetermined amount of money, regardless of their performance or injuries.

Signing Bonus

Top 10 picks often receive a signing bonus as part of their rookie scale contract.
This bonus is paid upfront and is typically a percentage of the player's first-year salary.

Earning Potential

Endorsements

In addition to their salary from the team, top 10 picks often have lucrative endorsement deals with major brands.
These endorsements can significantly increase a player's earning potential, especially if they become a star in the league.

Performance Bonuses

Some rookie contracts include performance bonuses based on the player's on-court achievements.
These bonuses can add to a player's overall earnings if they meet certain statistical or performance-based criteria.

Case Study: 2021 NBA Draft

Sample Salaries

In the 2021 NBA draft, the first overall pick, Cade Cunningham, signed a contract with the Detroit Pistons worth a projected $44.2 million over four years.
Jalen Green, the second overall pick, signed a contract with the Houston Rockets worth a projected $40.1 million over four years.

Potential Earnings

These figures highlight the substantial earning potential for top 10 picks in the NBA draft, with multi-million dollar contracts being the norm.

Salary Cap Implications

Impact on Team Finances

The rookie scale contracts for top 10 picks are an important factor for NBA teams in managing their salary cap.
The predetermined nature of these contracts allows teams to plan their finances around the expected salary commitments for their incoming rookies.

Cap Space Allocation

The relatively lower salaries for rookies under the scale contract system enable teams to allocate a significant portion of their salary cap space to established players or free agent acquisitions.

The financial rewards for being selected in the top 10 of the NBA draft are substantial, with multi-million dollar contracts and additional earning opportunities through endorsements and bonuses. The rookie scale contract system ensures that players are fairly compensated based on their draft position while providing teams with financial predictability and flexibility. As the NBA continues to grow in popularity and revenue, the financial stakes for top draft picks are likely to increase, further cementing the draft as a pivotal moment in a player's career.