An unsecured contract in NBA refers to a contract in which a player can be dismissed from the team under certain circumstances without taking full salary responsibility.
The wage calculation method of unsecured contracts is relatively complicated. The following is a detailed analysis and explanation:
1. Basic salary
Whether it is a guaranteed contract or an unsecured contract, the player’s basic salary is determined according to the contract amount and contract term. For example, if a player signs a three-year contract with a total value of $3 million, then the annual basic salary is $1 million.
2. Safeguard clause
Unsecured contracts usually stipulate certain safeguard clauses in the contract. These provisions stipulate under what circumstances the team has the right to fire players without taking full responsibility for salary. Common safeguards include:
(1) Full guarantee: It is stipulated in the contract that the player’s salary is fully guaranteed under any circumstances, that is, whether the team dismisses the player or not, the player can get the full salary.
(2) Partial guarantee: It is stipulated in the contract that the player’s salary is only partially guaranteed in some cases. For example, the contract may stipulate that the team only needs to pay a part of the contract amount as liquidated damages when dismissing players.
(3) No guarantee: The contract stipulates that the player’s salary is completely insecure in some cases, and the team can dismiss the player without any salary responsibility.
3. Dismissal process
If the team decides to fire a player, they need to follow the procedures stipulated by the NBA. After dismissal, the team will determine the amount of salary that the player can get according to the guarantee clause in the contract.
4. Salary calculation
According to the different guarantee clauses, the calculation methods of players’ wages are also different:
(1) Full guarantee: If full guarantee is stipulated in the contract, even if the player is fired, he can still get full salary.
(2) Partial guarantee: If there is a partial guarantee in the contract, the player will get a part of the contract amount as liquidated damages after being dismissed. The amount of liquidated damages depends on the specific guarantee ratio in the contract.
(3) No guarantee: If there is no guarantee in the contract, the player will not get any salary after being fired.
It should be noted that even if players only get part of their salary or not, they may still enjoy some other benefits and treatments, such as signing bonus, fine reduction, etc., which are usually stipulated separately in the contract.
In a word, the wage calculation of an unsecured contract depends on the specific guarantee clauses in the contract. Players and teams should carefully read and understand the terms of the contract before signing the contract, and seek legal and professional advice when necessary to ensure their rights and interests.
