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Understanding the Xavier Henry-Memphis Grizzlies Mess

Article VIII of the NBA Collective Bargaining Agreement (CBA), explains how the Rookie Scale works for players selected in the first round of the NBA Draft. Each contract is good for two seasons of play, followed by a club option for the 3rd season and a club option for the 4th season, should the club pick up the 1st of the 2 options.

Salaries are determined by the slot at which the player is selected. The reason that it is called a scale is because the club and the player’s agent may negotiate a contract that will be worth as low as 80% and as high as 120% of the slot value.

Exhibit B of the CBA actually breaks down the slot values by pick. The value for this year’s #12 overall pick is $1,683,500 in year 1, $1,809,700 in year 2, $1,936,000 in year 3 option, and the 4th year option percentage increase over 3rd year salary is 37.8%. This year’s #12 overall pick is former AAU star and University of Kansas guard, Xavier Henry. Henry is being represented by Wasserman Media Group’s Arn Tellem.

Arn Tellem wants Henry to get closer to the 120% ceiling than the 80% floor. In fact, Tellem has been holding Henry out of the Memphis Grizzlies Summer League because Henry’s rookie contract is still not signed.

What’s the hold up Chris Wallace? You just gave Rudy Gay $80+ million. Can’t fork out a few more thousand dollars to lock up the #12 overall pick in the most recent draft?

This article originally appeared on The Sports Agent Blog


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