Latest news with #NazReid
Forbes
2 hours ago
- Business
- Forbes
Why NBA Free Agents Should Consider Signing Shorter Contracts For Now
OKLAHOMA CITY, OKLAHOMA - APRIL 6: Shai Gilgeous-Alexander #2 of the Oklahoma City Thunder drives to ... More the basket around Luka Doncic #77 of the Los Angeles Lakers during the second quarter at Paycom Center on April 6, 2025 in Oklahoma City, Oklahoma. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using this photograph, User is consenting to the terms and conditions of the Getty Images License Agreement. (Photo by) From a financial perspective, there's never been a better time to be an NBA player. Just ask Naz Reid, who plans to re-sign with the Minnesota Timberwolves on a five-year, $125 million contract, according to ESPN's Shams Charania. The free-agent market projects to be bleak for players hoping to change teams this offseason because the Brooklyn Nets are the only team expected to have significant salary-cap space. But the cap itself has skyrocketed over the past decade, bringing player salaries right along with it, as Reid can newly attest. In 2015-16, the salary cap was $70 million flat. The non-taxpayer mid-level exception was roughly $5.5 million, while the taxpayer MLE was not even $3.4 million. The 2025-26 cap is expected to land at roughly $154.6 million, which would put the non-taxpayer MLE at $14.1 million and the taxpayer MLE at $5.7 million. Yes, you read that right. The taxpayer mid-level exception in 2025-26 is expected to be roughly $200,000 higher than the non-taxpayer mid-level exception was a decade ago. That stratospheric growth isn't expected to stop anytime soon, either. Thanks to the NBA's new 11-year, $75 billion national TV contracts and the cap-smoothing proposal that the league office and the players' union agreed to as part of the new collective bargaining agreement, the salary cap will likely rise by the full 10% that it's allowed to increase year-over-year for at least the next few seasons. Although it may be hard for NBA players to turn down nine-figure contract offers, they should think twice before locking in long-term deals this offseason. No matter what contract they sign, the salary cap projects to increase at a faster pace than their new deals will. The Compounding Problem Any NBA player looking to maximize their earning potential over the next half-decade needs to familiarize themselves with the concept of compounding. When a player re-signs with his own team, he's eligible for as much as 8% annual raises. However, that's a fixed rate after the first season. However much his salary increases year-over-year from the first season to the second is exactly how much it will rise in the ensuing years, too. For instance, say a player's new contract begins at $30.0 million and has 8% annual raises. It would jump to $32.4 million in the second year of the deal, but it would not increase by another 8% the following season. Instead, it would again rise by $2.4 million. It's even worse for players who sign with other teams in free agency. Those players are only eligible for four-year deals and have only 5% annual raises at most. Theirs work the same way as the 8% group, namely that the increase between the first and second seasons is equivalent to how much their salary will rise in future years. The NBA salary cap itself has no such issue. Not only is it projected to rise by 10% each year for the foreseeable future, but unlike the annual increase in contracts, those raises compound. As a result, long-term contracts will take up a slightly smaller portion of the cap each year, even if players get the full 8% max annual raise by re-signing with their own teams. If a player signed a five-year, $313.9 million max deal this summer, his salary would start at $54.1 million, increase to nearly $58.5 million in 2026-27 and then rise by another roughly $4.3 million over the remaining years of the deal. But if the cap does go up a full 10% annually over the lifespan of that contract, said deal would go from being 35% of the cap this coming season to only 31.6% in 2029-30. A contract starting at 35% of the salary cap will take up a smaller percentage of the cap each year. Granted, those smaller-than-the-cap-increase raises could ultimately benefit both players and teams. Given the new CBA's harsh team-building restrictions for the league's most expensive rosters, teams must be more cautious than ever while building around players on max contracts, particularly if they have two or more players on 35% max deals. Having those players take up an increasingly smaller portion of the salary cap each year could give teams extra wiggle room under the aprons to build out a championship-caliber supporting cast. Contracts are growing so massive that not every player will care about milking their respective teams for every dollar possible. For instance, New York Knicks guard Jalen Brunson signed a four-year, $156.5 million extension last summer rather than testing free agency in 2025, when he could have been eligible for a five-year, $269.1 million contract. Knicks wing Mikal Bridges, Brunson's college teammate, could potentially follow suit this offseason. Thus far, Brunson has been the exception to the rule. Jimmy Butler forced his way off the Miami Heat after they refused to give him the two-year, $110-plus million extension that he received upon landing on the Golden State Warriors. Anthony Davis signed a three-year, $175.4 million max extension in August 2023 that runs through the 2027-28 campaign (player option). Cade Cunningham, Evan Mobley, Franz Wagner and Scottie Barnes all received max deals fresh off their rookie-scale contracts last year, too. As Reid just demonstrated, some players might prefer to lock in long-term financial security over fully maximizing their earning potential. After all, one major injury could threaten their ability to secure another nine-figure payday. Look no further than Isaiah Thomas and DeMarcus Cousins, both of whom were in line for massive contracts within the past decade before a hip injury (Thomas) and Achilles tear (Cousins) derailed their careers. However, players who want to earn the most money possible during their NBA careers should be open to taking shorter-term contracts given the salary-cap outlook over the next few years. In fact, they should try to line up their deals to coincide with when they become eligible for a new earning tier. (Players with 7-9 years of NBA experience can receive up to 30% of the cap as their starting salary, while players with at least 10 years can receive up to 35%.) That approach comes with clear injury risk, but it also features more financial upside. Unless otherwise noted, all stats via PBPStats, Cleaning the Glass or Basketball Reference. All salary information via Spotrac and salary-cap information via RealGM. All odds via FanDuel Sportsbook. Follow Bryan on Bluesky.
NBC Sports
8 hours ago
- Business
- NBC Sports
Naz Reid reportedly to sign five-year, $125 million extension to stay in Minnesota
Take another name off the potential free agent board. Naz Reid and the Minnesota Timberwolves have agreed to a five-year, $125 million contract extension, a story broken by Shams Charania of ESPN. This keeps a key part of Minnesota's roster in place, a group that has advanced to back-to-back Western Conference Finals. Ried will decline his $15 million player option as part of this contract extension. That was expected, and other teams were eyeing the 2024 Sixth Man of the Year, with Chrania describing a 'vibrant market developing' willing to pay in the neighborhood of what the Timberwolves paid to keep him, but with some teams offering a starting role. Detroit, a team looking for a stretch big, was one team consistently mentioned as interested in Reid. (As of this writing, only Brooklyn would have the cap space to make that kind of offer, but other teams could get there if they wanted.) Reid, 25, averaged 14.2 points and six rebounds a game for the Timberwolves last season. He shot 37.9% from beyond the arc, providing a change of pace from starting center Rudy Gobert. Reid also stepped up with some big games in Minnesota's playoff runs. Minnesota is not done with questions about re-signing big men. They need to decide on Julius Randle, who has a $30.9 million player option that must be picked up by Sunday. He is also seeking an extension.
NBC Sports
9 hours ago
- Business
- NBC Sports
Naz Ried reportedly to sign five-year, $125 million extension to stay in Minnesota
Take another name off the potential free agent board. Naz Reid and the Minnesota Timberwolves have agreed to a five-year, $125 million contract extension, a story broken by Shams Charania of ESPN. This keeps a key part of Minnesota's roster in place, a group that has advanced to back-to-back Western Conference Finals. Ried will decline his $15 million player option as part of this contract extension. That was expected, and other teams were eyeing the 2024 Sixth Man of the Year, with Chrania describing a 'vibrant market developing' willing to pay in the neighborhood of what the Timberwolves paid to keep him, but with some teams offering a starting role. Detroit, a team looking for a stretch big, was one team consistently mentioned as interested in Reid. (As of this writing, only Brooklyn would have the cap space to make that kind of offer, but other teams could get there if they wanted.) Reid, 25, averaged 14.2 points and six rebounds a game for the Timberwolves last season. He shot 37.9% from beyond the arc, providing a change of pace from starting center Rudy Gobert. Reid also stepped up with some big games in Minnesota's playoff runs. Minnesota is not done with questions about re-signing big men. They need to decide on Julius Randle, who has a $30.9 million player option that must be picked up by Sunday. He is also seeking an extension.
Time of India
9 hours ago
- Sport
- Time of India
Minnesota Timberwolves' Naz Reid could sign a whopping $125 million contract to stay with Anthony Edwards-led roster
The Minnesota Timberwolves may have solved one of their biggest offseason puzzles before free agency even opened. According to multiple reports, Naz Reid is expected to remain in Minnesota after agreeing to a five-year contract worth up to $125 million. Tired of too many ads? go ad free now The 25-year-old forward has declined his $15 million player option to sign a long-term extension, a move that shows the franchise's confidence in his growing role alongside rising superstar . The Minnesota Timberwolves lock in Sixth Man of the Year Naz Reid with a massive extension Shams Charania of ESPN broke the news on X: 'Just in: Minnesota Timberwolves' Naz Reid intends to sign a new five-year, $125 million contract to stay with the franchise, including a player option, sources tell ESPN. Critical agreement between the Wolves and Reid's agents, Sean Kennedy and Jeff Schwartz of Excel Sports.' Charania followed up with added context that shows how rare Reid's decision is in today's . 'Reid declined a $15 million player option for next season and chose to stay with Minnesota despite a vibrant market developing of teams interested with similar money but with starting roles. The 2024 Sixth Man of the Year and Minnesota are locked in for the long term.' Reid has been one of the crucial superstars of the Timberwolves' postseason success, helping them reach back-to-back Western Conference Finals. He averaged a career-best 14.2 points per game last season while also becoming a vital part of their offensive spacing. His ability to stretch the floor makes him a valuable partner to Rudy Gobert and Julius Randle. His partnership and support of Anthony Edwards in the games will continue. Charania added more weight to his value: 'He is one of just three NBA players over the last three seasons to score 2,000 points off the bench.' Tired of too many ads? go ad free now That level of production is rare for non-starters, making the Timberwolves' commitment easier to justify. Also Read: Still, questions remain about the long-term structure. As KSTP Sports reported, 'Two sources confirm that the Wolves and Reid's representation are in agreement on a 5-year deal worth up to $125 million. The exact structure of the contract was still being worked through, as of late Friday.' Reid is expected to turn down the player's option before Sunday's deadline to make the deal official.
New York Post
10 hours ago
- Sport
- New York Post
Naz Reid lands massive $125 million Timberwolves extension
Naz Reid is staying in Minnesota. The New Jersey native and Jelly Fam alum has reportedly agreed to a five-year, $125 million extension to remain with the Timberwolves, ESPN reported. ESPN front office insider and salary cap expert Bobby Marks noted that the T-Wolves' projected tax bill resides at $23 million, significantly lower than the $141 million tax bill last season. The deal marks a significant investment in the soon-to-be 26-year-old forward who was expected to receive interest from multiple suitors around the NBA. 3 Minnesota Timberwolves center Naz Reid (11) works toward the basket during the first half of Game 5 of the Western Conference finals of the NBA basketball playoffs against the Oklahoma City Thunder, Wednesday, May 28, 2025, in Oklahoma City. AP 3 Naz Reid is going back to Minnesota. NBAE via Getty Images The Timberwolves are projected to be right at the second apron following this deal, with $206 million in team salary, just under $2 million away. This is meaningful given that Julius Randle has a player option worth around $30 million, and could opt out and enter free agency, potentially leaving Minnesota after one season. Randle, of course, arrived from New York via the Karl-Anthony Towns trade. 3 Naz Reid drives to the basket during the game against the Oklahoma City Thunder during Game 4 of the 2025 NBA Western Conference Finals on May 26, 2025. NBAE via Getty Images Reid's return, while celebrated, carries roster implications for that reason. Additionally, Rudy Gobert is beginning a three-year, $105 million extension next season. With Reid securing a rich role off the bench, a higher payroll could make re-signing Randle and keeping Gobert more difficult, unless the Wolves navigate the cap in a creative way. Last season, Reid averaged a career-best 14.2 points while shooting 46.2 percent from the field and 37.9 percent from 3. Reid won NBA Sixth Man of the Year honors in 2024 and helped Minnesota reach the Western Conference finals for the second straight year in 2025 before falling to the eventual champion Thunder.
