NEW YORK — The results of tonight’s NBA Draft Lottery and the NBA Draft on June 27 of course will produce massive financial implications for the players involved and slightly less significant financial implications for the teams involved.
The salaries of NBA first-round picks for each season are set forth in the league’s collective bargaining agreement with the National Basketball Players Association.
For example, the league’s rookie-scale says the 1st overall pick in the 2013 NBA Draft is scheduled to earn $4,436,900 as a rookie, although it should be noted that teams are permitted to sign their first-round draft picks for as much as 120 percent of the rookie-scale figures. (And teams usually do sign players to the 120 percent figure.)
First-rounders’ first and second seasons are fully guaranteed, and teams have the option to keep the first-rounders for a third season up to 120 percent of the rookie-scale figure for Year 3 and also an option for the fourth season at a specified raise.
So, to illustrate the significant financial differences between picking first, second, third or fourth, I’ve compiled the total maximum salaries over the first four seasons for the top four picks in the upcoming draft. The figures below assume the teams will pay 120 percent of the rookie-scale salary figures for the players’ first three seasons.
First overall pick:
2013-14 salary: $5,324,280
2014-15 salary: $5,563,920
2015-16 salary: $5,803,560
2016-17 salary: $7,318,289
Total over those four seasons: $24,010,049
Second overall pick:
2013-14 salary: $4,763,760
2014-15 salary: $4,978,200
2015-16 salary: $5,192,520
2016-17 salary: $6,552,960
Total over those four seasons: $21,487,440
Third overall pick:
2013-14 salary: $4,278,000
2014-15 salary: $4,470,480
2015-16 salary: $4,662,960
2016-17 salary: $5,893,981
Total over those four seasons: $19,305,421
Fourth overall pick:
2013-14 salary: $3,857,040
2014-15 salary: $4,030,560
2015-16 salary: $4,204,200
2016-17 salary: $5,318,313
Total over those four seasons: $17,410,113
The Magic will exit tonight's lottery with the first or second or third or fourth pick.
For the Magic, the difference between signing the first overall pick and the fourth overall pick amounts to $6.6 million over four seasons. That's one reason why Brian Serra of Magic Basketball Online argues that the Magic should hope they don't win the first pick tonight.
That said, per season, the difference per season between signing the top overall pick and the fourth overall pick averages out to $1.65 million.
So, do you agree with Brian?
Josh Robbins covers the Orlando Magic and the NBA for the Orlando Sentinel. You can reach him via e-mail at email@example.com and connect with him on Facebook at facebook.com/JoshuaBRobbins. Follow him on Twitter at @JoshuaBRobbins.Copyright © 2014, The Baltimore Sun