NBA To Prorate Bonus, Incentive Criteria Using March 11 As End Of Season

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A number of players with performance incentives and bonus clauses in their contracts didn’t get the opportunity to earn those bonuses in 2019/20 due to the suspension of the NBA season and the league’s subsequent hiatus.

However, according to Ramona Shelburne and Adrian Wojnarowski of ESPN, the NBA and NBPA have reached an agreement on how to handle performance incentives in ’19/20. The criteria for those bonuses will be prorated, using March 11 as the end of the regular season, so stats accumulated during the eight “seeding games” this summer won’t count toward those incentives.

[RELATED: Hoops Rumors Glossary: Proration]

For instance, Tyus Jones‘ contract with the Grizzlies includes an $858K bonus in the event that Memphis wins 33 games. Prior to the hiatus, the Grizzlies had 32 victories. Rather than needing the Grizzlies win one more game when play resumes, Jones will already be assured of his bonus, since a 32-33 record prorated over a full 82-game season would work out to 40 wins.

Similarly, Raptors guard Kyle Lowry has a series of bonuses related to his All-Star berth and his team’s postseason success that require him to play at least 65 games. When the season went on hiatus, Lowry had appeared in 52 of Toronto’s 64 games. Prorated over an 82-game season, that would work out to approximately 67 of 82 games, so Lowry will be considered to have met that 65-game threshold. He’ll receive his $200K All-Star bonus and could earn up to another $1.5MM, depending on how far the Raptors advance in the playoffs.

ESPN’s Bobby Marks broke down a number of these bonuses and incentives in an earlier Insider-only story. Another important one, noted by Shelburne and Wojnarowski, affects Sixers center Joel Embiid.

The final three years of Embiid’s maximum-salary contract, through 2022/23, had previously only been conditionally guaranteed, with the 76ers retaining the ability to gain salary relief if the veteran center suffered a career-threatening injury related to his back or feet. In order to fully guarantee those salaries, Embiid had to log 1,650 minutes this season.

When the season was suspended, Embiid was only at 1,329 minutes played. However, Philadelphia had only played 65 of 82 games. Prorated over a full season, Embiid’s average number of minutes per Sixers game (approximately 20.45) would work out to 1,677, surpassing the 1,650-minute threshold and ensuring his upcoming salaries are fully guaranteed.

Players whose bonuses and incentives rely on a percentage are unaffected by proration. For example, Mavericks forward Maxi Kleber would receive a $75K bonus for an 80% free-throw rate and another $150K for a 40% three-point average. His percentages are currently 86.3% and 37.4%, respectively, so he’ll receive the first bonus — but not the second. The same would have been true if he had finished at 80.1% and 39.9%.