A new CBA agreement was tentatively reached last night between the NBA and the NBA Players’ Union. One new detail in the agreement will likely affect Paul George and the Pacers as they try and come to an agreement on an extension to keep George in Indiana next summer.
It will allow teams to designate one veteran player that has achieved certain criteria as a player (Zach Lowe reports that at least one of these will be making an All-NBA team) and offer that player a contract extension that is 35% of the Salary Cap in year one of the extension (30% if he leaves as a free agent with another team) and allows the contract to extend up to 5 years in addition to the one year remaining (4 years is max as a free agent with another team). It also allows the Pacers to increase the salary by up to 7.5% per season, while other teams would be limited to only 4.5% increases.
This amounts to a huge increase for Paul George and other star players like DeMarcus Cousins and Russell Westbrook that will be looking for new contracts in the near future.
Steve Kyler of Basketball Insiders broke down what it would look like for Paul George if he signed an extension under this provision next summer and compared it to what a potential deal would look like if he choose to leave.
Home teams certainly have a lot more money to throw at stars to encourage them to stay and to avoid free agency with the extension now than they ever have. Here’s what Kyler reported George’s contract would roughly look like.
This is big news for small markets that are increasingly losing their marquee players in free agency, and it couldn’t come at a better time for the Pacers and their fans as Paul George is locked in for $19.5 million next season (2017-2018) and is expected to opt-out of his contract in the summer of 2018 to become an unrestricted free agent.