The CBA Glossary

“Base Compensation” means the component of Compensation
other than bonuses of any kind.

Signing bonuses

Broadly, bonuses for "the player’s or Team’s performance in any particular NBA game or series of games" are now expressly prohibited in the Uniform Player Contract. Permissible exceptions to this would include a) "the final standing of the Team", and b) "Team’s qualifying for or winning a particular playoff series and/or the player’s or Team’s performance in a particular playoff series".

Trade bonuses

A contract may contain a trade bonus, commonly known as a trade kicker. It does not prevent a trade; instead, it rewards the player financially if he is traded. With a trade kicker, If a player is traded, they receive additional compensation from the team. ⓘ Article XXIV: (Prohibiton of No-Trade Contracts), Section 1. (General Limitation):

No Player Contract may contain any prohibition or limitation of an NBA Team's right to assign such Contract to another NBA Team.

Some limits on that:

A trade bonus is only payable the first time the contract is traded. ⓘ Article XXIV: (Prohibiton of No-Trade Contracts), Section 2. (Exceptions to General Limitation):

Notwithstanding the provisions of Section 1 of this Article XXIV:

(a) A Player Contract may contain (in Exhibit 4 to such Player Contract) a provision entitling a Player to earn Compensation if the player’s Uniform Player Contract is traded (“trade bonus”) subject to the following:

(ii) A trade bonus shall not exceed fifteen percent (15%) of the Base Compensation remaining to be earned by the player pursuant to the Contract at the time of the trade (excluding an Option Year if not yet exercised).

If a player signs a contract specifically as part of a sign-and-trade transaction, the initial trade does not trigger the bonus. ⓘ Article XXIV: (Prohibiton of No-Trade Contracts), Section 2. (Exceptions to General Limitation):

Notwithstanding the provisions of Section 1 of this Article XXIV:

(a) A Player Contract may contain (in Exhibit 4 to such Player Contract) a provision entitling a Player to earn Compensation if the player’s Uniform Player Contract is traded (“trade bonus”) subject to the following:

(ii) A trade bonus shall not exceed fifteen percent (15%) of the Base Compensation remaining to be earned by the player pursuant to the Contract at the time of the trade (excluding an Option Year if not yet exercised).

The maximum trade bonus is 15% of the base compensation remaining on the contract at the time of the trade. ⓘ Article XXIV: (Prohibiton of No-Trade Contracts), Section 2. (Exceptions to General Limitation):

Notwithstanding the provisions of Section 1 of this Article XXIV:

(a) A Player Contract may contain (in Exhibit 4 to such Player Contract) a provision entitling a Player to earn Compensation if the player’s Uniform Player Contract is traded (“trade bonus”) subject to the following:

(ii) A trade bonus shall not exceed fifteen percent (15%) of the Base Compensation remaining to be earned by the player pursuant to the Contract at the time of the trade (excluding an Option Year if not yet exercised).

Unexercised option years do not count into that calculation of what is remaining. ⓘ Article XXIV: (Prohibiton of No-Trade Contracts), Section 2. (Exceptions to General Limitation):

(a) A Player Contract may contain (in Exhibit 4 to such Player Contract) a provision entitling a Player to earn Compensation if the player’s Uniform Player Contract is traded (“trade bonus”) subject to the following:

(ii) A trade bonus shall not exceed fifteen percent (15%) of the Base Compensation remaining to be earned by the player pursuant to the Contract at the time of the trade (excluding an Option Year if not yet exercised)

A player and team can agree to reduce a trade bonus: When extending a contract, When completing a trade, When completing a sign-and-trade extension. This happens fairly often when a trade bonus would otherwise create salary cap complications. ⓘ Article XXIV: (Prohibiton of No-Trade Contracts), Section 2. (Exceptions to General Limitation):

No Player Contract may contain any prohibition or limitation of an NBA Team's right to assign such Contract to another NBA Team.

If a contract did not contain a trade bonus when it was signed, one cannot later be added. They can however be added into extensions - they can also do the opposite, anbd, when signing an extension, agree that it applies only to the original term and not the newly added years. ⓘ Article XXIV: (Prohibiton of No-Trade Contracts), Section 2. (Exceptions to General Limitation):

No Player Contract may contain any prohibition or limitation of an NBA Team's right to assign such Contract to another NBA Team.

Performance bonuses

● Bonuses, including both signing bonuses (Money paid simply for signing), performance bonuses and conditioning/education bonuses (also recorded in Exhibit 1) ⓘArticle II (Uniform Player Contract) Section 3 (Allowable Amendments):

In their individual contract negotiations, a player and a Team may amend the provisions of a Uniform Player Contract, but only in the following respects:

(b) By agreeing upon provisions (to be set forth in Exhibit 1 to a Uniform Player Contract) setting forth lump sum bonuses, and the payment date for each such bonus, to be paid as a result of: (i) the player’s execution of a Uniform Player Contract or Extension (a “signing bonus�); (ii) the player’s achievement of agreed-upon benchmarks relating to his performance as a player or the Team’s performance during a particular NBA Season, subject to the limitations imposed by Paragraph 3(c) of the Uniform Player Contract and Section 12(d) below; or (iii) the player’s achievement of agreed-upon benchmarks relating to his physical condition or academic achievement (e.g., earning a college degree or completion of a certified leadership training program), including the player’s attendance at and participation in an off-season summer league and/or an off-season skill and/or conditioning program upon terms and conditions agreed upon by the Team and player (subject to the provisions of Section 12(c) below). Any amendment agreed upon pursuant to subsections (ii) or (iii) of this Section 3(b) must be structured so as to provide an incentive for positive achievement by the player and/or the Team; and any amendment agreed upon pursuant to subsection (ii) must be based upon specific numerical benchmarks or Generally Recognized League Honors. By way of example and not limitation, an amendment agreed upon pursuant to Section 3(b)(ii) may provide for the player to receive a bonus if his free-throw percentage exceeds eighty percent (80%), but may not provide for the player to receive a bonus if his free-throw percentage improves over his previous Season’s percentage. For purposes of any bonus agreed upon pursuant to subsection (ii), the performance benchmarks must be based solely upon official NBA statistics, and the determination of whether a player has earned any such performance bonus shall be made solely by reference to official NBA statistics as published on NBA.com.

(b) By agreeing upon provisions (to be set forth in Exhibit 1 to a
Uniform Player Contract) setting forth lump sum bonuses, and the payment
date for each such bonus, to be paid as a result of: (i) the player’s execution
of a Uniform Player Contract or Extension (a “signing bonus”); (ii) the
player’s achievement of agreed-upon benchmarks relating to his
performance as a player or the Team’s performance during a particular NBA
Season, subject to the limitations imposed by Paragraph 3(c) of the Uniform
Player Contract and Section 12(d) below; or (iii) the player’s achievement of
agreed-upon benchmarks relating to his physical condition or academic
achievement (e.g., earning a college degree or completion of a certified
leadership training program), including the player’s attendance at and
participation in an off-season summer league and/or an off-season skill
and/or conditioning program upon terms and conditions agreed upon by
the Team and player (subject to the provisions of Section 12(c) below). Any
amendment agreed upon pursuant to subsections (ii) or (iii) of this
Section 3(b) must be structured so as to provide an incentive for positive
achievement by the player and/or the Team; and any amendment agreed
upon pursuant to subsection (ii) must be based upon specific numerical
benchmarks or Generally Recognized League Honors. By way of example
and not limitation, an amendment agreed upon pursuant to Section 3(b)(ii)
may provide for the player to receive a bonus if his free-throw percentage
exceeds eighty percent (80%), but may not provide for the player to receive
a bonus if his free-throw percentage improves over his previous Season’s
percentage. For purposes of any bonus agreed upon pursuant to
subsection (ii), the performance benchmarks must be based solely upon
official NBA statistics, and the determination of whether a player has earned
any such performance bonus shall be made solely by reference to official
NBA statistics as published on NBA.com.

Conditioning/education bonuses

bonuses generally not allowed on minimum salaries, except trade kickers: (f) Every Contract entered into between a player and Team that is
intended to provide for Compensation equal to the Minimum Player Salary
(with no bonuses of any kind) for each Season must contain the following
sentence in Exhibit 1A of such Contract and shall be deemed amended in
the manner described in such sentence: “This Contract is intended to
provide for a Base Compensation for the ____________ Season(s) equal to
the Minimum Player Salary for such Season(s) (with no bonuses of any kind)
and shall be deemed amended to the extent necessary to so provide.” The
reference in the preceding sentence to “no bonuses of any kind” shall not
be construed to limit the ability of a Team and player (i) to agree upon
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provisions entitling a player to earn Compensation if such player’s Uniform
Player Contract is traded to another NBA team in accordance with Section
3(k) above, or (ii) to enter into a Contract with an Exhibit 10 Bonus, subject
to the limitations in Section 3(s) above and Section 11(h) below.

The "repeater" tax

Section 12. Bonuses.
(a) Notwithstanding any other provision of this Agreement:
(i) No Uniform Player Contract may provide for Incentive
Compensation for a Season that exceeds twenty percent
(20%) of the Regular Salary called for by the Contract for
such Season;
(ii) No Uniform Player Contract may provide for a signing
bonus that exceeds fifteen percent (15%) of the
Compensation (excluding Incentive Compensation) called
for by the Contract (or, in the case of an Extension, in the
extended term of the Extension); and
(iii) No Offer Sheet may provide for a signing bonus that
exceeds ten percent (10%) of the Compensation (excluding
Incentive Compensation) called for by the Offer Sheet.
(b) If a player’s Contract provides for a signing bonus and the player is
suspended for the intentional failure or refusal to render the services
required under his Contract, the Team shall be entitled to a return from the
player of an amount equal to the product of the signing bonus multiplied by
a fraction, the numerator of which is the number of Regular Season games
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that the player is suspended as a result of his failure or refusal to render such
services and the denominator of which is the total number of Regular Season
games to be played by the Team during the term of the Contract (excluding
any Option Year). The foregoing shall not limit any other rights or remedies
a Team may have under the Contract or by law.
(c) (i) No Uniform Player Contract may provide for the player’s
attendance at and participation in an off-season skill and/or
conditioning program that exceeds two (2) weeks in length.
(ii) A Uniform Player Contract that contains a bonus to be paid
as a result of the player’s attendance at and participation in
an off-season summer league and/or an off-season skill
and/or conditioning program in accordance with
subsection b(i) above may also contain a provision providing
that such bonus will be paid if: (A) the Team elects in writing
to waive the requirement that the player perform the
specified services; (B) the player, in lieu of providing the
specified services, participates in training and/or plays
games with his national team during the off-season; and/or
(C) the player has an injury, illness, or other medical
condition that renders the player unable to participate in
such summer league and/or skill and conditioning program.
If a Contract contains a provision of the type described in
(A) above and the Team exercises its right to waive the
requirement that the player perform the specified services
with respect to one or more off-seasons, the amounts paid
to the player shall continue to be treated as a bonus for the
player’s participation in an off-season summer league or
off-season skill and/or conditioning program and shall
continue to be subject to the rules in this Agreement relating
to such bonuses.
(iii) If a Uniform Player Contract contains a bonus to be paid as
a result of the player’s attendance at and participation in an
off-season summer league and/or an off-season skill and/or
conditioning program, the Team shall be required to provide
the player with a reasonable opportunity to earn the bonus
by, for example, providing the player with the dates, times,
and location(s) at which the specified services are to be
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performed. A Team’s failure to comply with this
requirement with respect to any off-season shall be deemed
to constitute a waiver of the requirement that the player
perform the specified services for such off-season.
(d) No Uniform Player Contract may contain a bonus for the player
being on a Team’s roster as of a specified date or for a specified duration,
or for the player dressing in uniform for or being eligible to play in a
specified number of games.
(e) If a Player Contract contains Incentive Compensation, a Team and
player shall not be permitted at any time to amend the Contract to modify
the conditions that the player must satisfy in order to earn all or any portion
of such Incentive Compensation.

Tax rebates

“Benefits” or “Total Benefits” means the sum of all amounts
paid or to be paid on an accrual basis during any Salary Cap Year by the
NBA or NBA Teams, other than Expansion Teams during their first two
Salary Cap Years, for the specific benefits set forth in Article IV.

Neither the IST Finals Game, Play-In Games, nor a Team’s or a
player’s performance during any such games, shall be considered for
purposes of determining whether, as a result of his achievement of
agreed-upon benchmarks related to a player’s performance as a player or the
Team’s performance during a particular Season:
(i) The player has earned a Performance Bonus included in his
Player Contract in accordance with Section 3(b)(ii) above; or
(ii) Any additional conditions or limitations applicable to a
player’s Compensation protection in accordance with
Section 4(l)(ii) above have been satisfied.
(k) No Player Contract may provide for (x) one (1) or more
Performance Bonuses in accordance with Section 3(b)(ii) above, or (y) any
additional conditions or limitations applicable to Compensation protection
in accordance with Section 4(l)(ii) above, that are in either or both cases
based in whole or in part on:
(i) The Team’s or the player’s performance during any InSeason Tournament games or Play-In Games;
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(ii) The Team qualifying to participate in any In-Season
Tournament knockout stage game or winning the IST Finals
Game; or
(iii) The Team qualifying to participate in one (1) or more
Play-In Games;
provided, however, that the foregoing shall not prevent a Player Contract
from providing for (A) one (1) or more Performance Bonuses in accordance
with Section 3(b)(ii) above, or (B) any additional conditions or limitations
applicable to Compensation protection in accordance with Section 4(l)(ii)
above, that are in either or both cases based in whole or in part on a player’s
or Team’s performance in all Regular Season games.

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