The National Basketball Association (NBA) is renowned for its high-paying contracts, making it one of the most lucrative sports leagues globally. But how exactly do these athletes receive their salaries? Let's delve into the details.
Bi-weekly Payments During the Season
NBA players typically receive their salaries bi-weekly during the regular season. Their annual salary is divided into 24 or 26 payments, depending on the number of weeks in the season. As per the NBA's Collective Bargaining Agreement (CBA), teams must issue paychecks no later than seven days after the end of each pay period.
Playoff Earnings and Bonuses
During the playoffs, players continue to earn their regular season's salary. However, many contracts include additional incentives based on the team's performance. These bonuses can be tied to how far the team advances in the playoffs, whether they win the championship, or individual performance during the playoffs.
Apart from their base salary, some players have performance bonuses built into their contracts. These incentives are tied to various factors such as the number of games played, minutes played, points scored, rebounds, assists, and other statistics. Achieving specific milestones like being named an All-Star or winning the MVP award can significantly boost a player's earnings.
When an athlete signs a contract, they may be eligible for a one-time bonus payment known as a "signing bonus." This bonus cannot exceed 15% of their overall salary and is often used to sweeten the deal when recruiting new team members.
Even after retiring, NBA players can continue to receive income through various sources. One such source is the pension plan, which provides financial assistance to retired players who have at least three years of service in the league. Some players also receive residuals from merchandise sales and other business ventures they may have invested in during their career.