page_title: NBA salary cap
section_title: "Derrick Rose" Rule
hierarchical_section_title: NBA salary cap / Individual contracts under the CBA / Designated Player / "Derrick Rose" Rule
caption_attribution_description: Derrick Rose
context_page_description: The NBA salary cap is the limit to the total amount of money that National Basketball Association teams are allowed to pay their players. Like many professional sports leagues, the NBA has a salary cap to control costs and benefit parity, defined by the league's collective bargaining agreement. This limit is subject to a complex system of rules and exceptions and is calculated as a percentage of the league's revenue from the previous season. Under the CBA ratified in July 2017, the cap will continue to vary in future seasons based on league revenues. For the 2019–20 season, the cap is set at $109.14 million.
  The majority of leagues have hard caps while the NBA has a soft salary cap. Hard salary caps forbid teams from going above the salary cap. Soft salary caps allow teams to go above the salary cap but will subject such teams to reduced privileges in free agency. Teams that go above the luxury tax cap are subject to the luxury tax.
context_section_description: A Designated Player coming off his rookie contract may be eligible to earn 30% of the salary cap (rather than the standard 25%) if he passes certain criteria. Through the 2017–18 season, in order to be eligible, the player must be voted to start in two All-Star Games, or be named to an All-NBA Team twice (at any level), or be named MVP. Officially titled the "5th Year 30% Max Criteria", it has been dubbed (and is more commonly known as) the "Derrick Rose Rule" after the 2011 MVP, due to the fact that when the criteria were introduced, Rose was the only player in the NBA eligible to sign the maximum extension (due to his MVP award). The reasoning for the rule is to suitably reward players being extended off of their rookie contract who are considered to be of a higher "caliber" than their peers, without restricting them to the lower (25%) salary level. A player may sign a "5th Year, 30% Max" contract before the final year of his rookie contract and before fulfilling the criteria needed to receive the 30% salary grade. Should the player fail to fulfill the criteria before the start of his Designated Player contract, he will receive the standard five-year, 25% Designated Player contract. James Harden of the Houston Rockets and Anthony Davis of the Los Angeles Lakers had such a clause in their contract extensions, but both failed to meet the criteria. The only player in the NBA who was attempting to qualify for a full 30% contract in 2013–14 was Paul George, who signed a provisional 30%/5 year contract in September 2013. George, who had made the All-NBA third team in 2012–13, qualified by again making the All-NBA third team.
  The 2017 CBA changed the qualification criteria for "5th Year, 30% Max" contracts. Players who come off rookie contracts at the end of the 2017–18 season, or later, must meet any of the following criteria to qualify:
  Selection to an All-NBA team (at any level) in the player's fourth season, or in two of the three seasons between his second and fourth seasons.
  Selection as Defensive Player of the Year in the player's fourth season, or in two of the three seasons between his second and fourth seasons.
  Selection as MVP in any season from the player's second onward.
  These criteria are identical to those for the veteran player extensions introduced in the 2017 CBA. Had these criteria been part of the 2011 CBA, Rose would still have qualified for a 30% contract, as he was in his third NBA season when he was named MVP.
caption: In a rule named after Derrick Rose, accomplished players coming off their rookie contract could earn more money in the 2011 CBA.
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