Kevin Durant: Imagining the value of his next contract

UNDERSTANDING THE ‘V’ IN MVP — A local NBA salary cap expert projects Kevin Durant’s next contract could be in the neighborhood of \$143.75 million over five years.
Published: May 13, 2014

What could Durant command on the open market? Jon Hamm is a local expert on the NBA’s collective bargaining agreement. Here is what he had to say about Durant’s next contract:

“There aren't any solid projections yet, because there are no salary cap projections for 2016-17 yet. But we can get close. Max salaries are somewhat based on the salary cap. The catch is that the formula used to compute max salaries is slightly different than the formula used to calculate the salary cap.

“In 2016, Durant's maximum salary will be 30 percent of the salary cap (he'll fall into the 7-9 years experience bracket). But because of the formula difference, the max salary for that bracket will be slightly less than 30 percent of the cap, in actuality. For the sake of simplicity, it's not unreasonable to just use 30 percent of the salary cap as the max salary guesstimate. We're just guessing at future salary cap numbers at this point anyway. (This is somewhat confusing because the agreement refers to max salaries as a percentage of the salary cap, but then a different formula is spelled out in another subsection.)”

Hamm also cited collective bargaining agreement expert Larry Coon: “A free agent's maximum salary in the first year of a new contract is never less than 105 percent of his salary in the last year of his previous contract.” So, Hamm said, “if the max salary is defined as \$19 million, but a player made \$20 million the year before, his max salary would be \$21 million. The league projects a salary cap of \$66.5 million in 2015-16. That'd be a \$3.3 million increase over what's expected in 2014-15. A conservative estimate would be to increase that another \$3.3 million for 2016-17. Round up a touch and let's assume the salary cap will be \$70 million in the summer of 2016. If that's the case, then the maximum salary bracket Durant would fall into would be somewhere around \$21 million.

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