When NBA Stars Fall, Teams Get Help Paying Their Mega-Salaries
It's a devastating on-court blow for the Eastern Conference champs, who must also adjust to the departure of free agent center Myles Turner. One consolation: Insurance will cover up to $18.2 million of Haliburton's $45.6 million guaranteed salary for 2025-26.
Advertisement
More from Sportico.com
The NBA oversees a temporary total disability (TTD) insurance program for the benefit of individual teams. Each club insures a minimum of four of its highest-paid players, as defined by either the current season salary or total remaining salary. Teams have the option to insure additional players.
The policy pays out after players miss 41 consecutive regular-season games, which can span two seasons. The benefit is either 50% or 80% of the player's salary, depending on the 'tier' of coverage selected by the team—the higher tier requires a higher annual premium. Last season, the max payout was roughly $492,000 per game. The $18.2 million potential benefit for the Pacers for Haliburton is based on the higher tier, which pays 80%. Teams are responsible for the balance of the salary.
Prior versions of the NBA's TTD program covered five players on each club, and the maximum payout was $175,000 per game, and then raised to $275,000 per game as salaries climbed.
Advertisement
All-NBA star Jayson Tatum is also likely to be sidelined for most, if not all, of the season after he tore his Achilles tendon during the Boston Celtics' loss to the New York Knicks in the Eastern Conference semifinals—his $54.1 million salary for 2025-26 ranks tied for fourth in the NBA. The Celtics will collect just over $20 million based on maximum coverage.
Other high-priced stars likely to miss a chunk of next season recovering from injuries include Kyrie Irving ($36.6 million salary) and Dejounte Murray ($26.8 million salary). Irving missed the Mavericks' last 20 games of the 2024-25 season after tearing his ACL, while Murray was sidelined for the New Orleans Pelicans' final 33 games after rupturing his Achilles in January.
Damian Lillard, who suffered his own Achilles injury during the 2025 playoffs, was waived by the Milwaukee Bucks, who 'stretched' the remaining $112.6 million left on his contract over five years. It is unclear whether insurance will cover any of his deal. A representative for the Bucks declined to comment on the matter.
The league has a separate program for injured players for salary cap purposes. The disabled player exception (DPE) allows a team to sign one replacement player after someone suffers a season-ending injury or illness. The salary is capped at the lesser of 50% of the injured player's salary or the non-tax mid-level exemption, which is $14.1 million for the 2025-26 season. They can also acquire a player in a trade under the same salary rules, plus $100,000.
Advertisement
Best of Sportico.com
Sign up for Sportico's Newsletter. For the latest news, follow us on Facebook, Twitter, and Instagram.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
26 minutes ago
- Yahoo
Bulls contract offer for Josh Giddey revealed by NBA insider
Restricted free agents around the NBA are in the worst possible situation at the moment. It's very unfortunate, but it helps the Chicago Bulls' scenario. As of now, the Bulls have no reason to give Josh Giddey all the money he wants, unless they genuinely believe he's worth it. Even then, it isn't like another team around the league could realistically give him what he's looking for. According to a recent report from Brett Siegel, Giddey is currently seeking a deal similar to Jalen Suggs, who landed a five-year, $150 million deal. He wants something in the $30 million AAV range, but the Bulls aren't willing to give him that. "The two sides met at NBA Summer League in Las Vegas, where Giddey and his camp made it clear they want a contract similar to that of Jalen Suggs (5-year, $150 million) and Immanuel Quickley (5-year, $162 million) and have not come down from their $30 million annual average value asking price," Siegel wrote. MORE: Siegel later added that the Bulls haven't offered Giddey more than $20 million per year, a $10 million difference between the two sides. "The Bulls have not offered more than a four-year contract in the $20 million per year range," Sigel continued. "However, the two sides are expected to reunite and negotiate and find common ground on a new deal this summer. No team outside of Chicago has expressed legitimate interest in Giddey due to his contract demands." It remains uncertain how things will play out over the next few weeks to months, but Giddey isn't in the position he had hoped for entering the offseason. It's an unfortunate reality of the new CBA, as restricted free agents around the league continue to face this issue.
USA Today
27 minutes ago
- USA Today
Reporter suggests Lakers should trade LeBron James if they start slowly
After plenty of buzz earlier this month that LeBron James would perhaps ask to be traded, it now appears that, in all likelihood, he will remain a member of the Lakers, at least through the start of the new NBA season. He decided to exercise the player option on his contract for the 2025-26 campaign, and for several reasons, it would be next-to-impossible to work out a trade where his destination team would have enough remaining talent to compete for the NBA championship. However, that reality hasn't entirely eliminated the trade buzz surrounding the 40-year-old. John Hollinger of The Athletic suggested that it would be a good idea for the Lakers to trade James before this winter's trade deadline if they don't start off the season well. "While he opted in to the final year of his contract and does not appear to be an imminent trade candidate, as our Joe Vardon and Dan Woike reported here, that doesn't necessarily mean returning to the Los Angeles Lakers on a one-year deal was at the top of his wish list," Hollinger wrote. "In particular, the whispers about him having eyes for Dallas — a place where he could have teamed up with former teammates Anthony Davis and Kyrie Irving and young phenom Cooper Flagg — before opting into his deal were hard to ignore. "... Nonetheless, this situation bears watching from both sides, particularly if L.A. starts the regular season slowly. The Lakers set themselves up to have max cap room next summer once James' salary comes off their books, taking advantage of an artificially low cap hold for Austin Reaves. If that's their angle, wouldn't it make sense to cash in their James stock if they aren't challenging at the top of the West?" The Lakers have somewhat quietly and gradually improved their roster after losing in the first round of the 2025 playoffs in five games to the Minnesota Timberwolves. They signed up-and-coming forward Jake LaRavia and center Deandre Ayton and have gotten an agreement from former Defensive Player of the Year Marcus Smart. Those three men should offset the loss of 3-and-D forward Dorian Finney-Smith, who joined the Houston Rockets. While L.A. doesn't appear to be a true championship contender, it could be a top-four team in the Western Conference, and it may not be done making moves. Despite all the talk about the franchise wanting to keep lots of salary cap space clear for the next two summers, it doesn't appear to be looking to punt this coming season.
New York Post
27 minutes ago
- New York Post
Yankees in pursuit of Eugenio Suarez trade as Diamondbacks slugger continues home run barrage
The market for Eugenio Suarez could be heating up as much as his bat is — with the Yankees squarely in the mix. The Diamondbacks' slugging All-Star third baseman hit his fifth home run in the last three games Monday night during a 6-3 loss to the Astros, giving him an NL-best 36 homers this season. And the Yankees are among the teams who have inquired about the 34-year-old who will be a free agent at season's end, The Post's Jon Heyman reports. The Mariners, who Suarez played for in 2022 and '23, and the Cubs are among the other clubs who have called about Suarez ahead of next Thursday's MLB trade deadline. Suarez, whose 86 RBIs leads MLB, hit two home runs on both Saturday and Sunday and has three multi-homer games in his last six appearances. Diamondbacks third baseman Eugenio Suarez hits his 36th home run of the season, a solo home run against the Astros on July 21, 2025. Getty Images He's 9-for-20 during that six-game stretch with five walks and zero strikeouts. Since moving Jazz Chisholm back to second and cutting DJ LeMahieu, the Yankees have been left with a massive void at third base as rookie Jorbit Vivas (.173 average) and Oswald Peraza (.150 average) have been splitting time there. The Diamondbacks (50-51) had won four in a row before Monday's loss. They're not completely out of the playoff race at 5.5 games back of the third wild-card spot, but they'd have to jump four teams and their pitching has been brutal. Given Suarez's current performance, age and contract status, Arizona may be compelled to get whatever they can get for him by the deadline while his value is high. While Suarez said he's 'happy' in Phoenix, he addressed the possibility of joining the Yankees last Monday at MLB's All-Star festivities. Eugenio Suarez celebrates his home run against the Astros on July 21, 2025. Getty Images 'Yankees is Yankees — I feel like it's a team that wants to win,' Suárez said. 'They had the [World Series] chance from last year, but they are hungry still. 'If I go over there, like I said, I would do my best over there. Try to help them win the World Series.' The Yankees (55-45) fell to the Blue Jays on Monday and are now four games behind Toronto for the AL East lead.
