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Rookies “Earning” The Extra 20% Over Slot

The Memphis Grizzlies finally ended up coming to terms with its first-round selections, Xavier Henry and Greivis Vasquez.  It is still too early in the season to call their rookie campaigns a success or bust, but we can already call Memphis’ hard-line stance on tying the first round picks’ rookie contract to performance bonuses.  The Grizzlies wanted Henry and Vasquez to “earn” the additional 20% of their rookie contract (rookie contracts can be between 80% and 120% of the slot at which the player is selected in the draft) through performance bonuses.  Arn Tellem of Wasserman Media Group was having none of that idea.  Eventually the Grizzlies caved in.

When I originally wrote about the Grizzlies caving into pressure, I mentioned that the San Antonio Spurs might suffer the most based on the Grizzlies folding its hand.  The Spurs are known to make its players perform on their rookie contracts if they want to earn the max on their contracts.  And they have had quite a bit of success under that model.

This year, James Anderson was selected by the Spurs at #20 overall.  He also accepted a rookie deal that includes performance bonuses.  The thing that may end up saving the Spurs is that Anderson will likely meet the performance goals that were set.  As long as the Spurs did not and continue to not set those goals at a level that is unconscionable, and their rookies have a track record of meeting the goals, I do not see why the Spurs will be held back from continuing the practice of making their rookies earn top dollars.

Will any teams attempt what the Grizzlies aimed to do this past offseason and demand that their first-round selection(s) sign a rookie contract that includes performance bonuses for the extra 20% over slot?  If so, I have to imagine they will use the Spurs as Exhibit A.

By Darren Heitner

Darren Adam Heitner, Esq., is a preeminent sports attorney and the founder of Heitner Legal, P.L.L.C., a Fort Lauderdale-based law firm specializing in sports law, contract negotiations, intellectual property, and arbitration. He earned his Juris Doctor from the University of Florida Levin College of Law in 2010 and a Bachelor of Arts in Political Science, magna cum laude, from the University of Florida in 2007, where he was named Valedictorian of the College of Liberal Arts and Sciences. Admitted to practice in the state bars of Florida, New York, and the District of Columbia, as well as multiple federal courts, Darren also serves as a certified arbitrator with the American Arbitration Association.

As an adjunct professor, Darren imparts his expertise through teaching Sports Law at the University of Florida Levin College of Law and Name, Image, and Likeness (NIL) at the University of Miami School of Law in the Entertainment, Arts, and Sports Law LL.M. program. His scholarly contributions include authoring several books published by the American Bar Association, such as How to Play the Game: What Every Sports Attorney Needs to Know, and numerous articles in prominent publications like Forbes, Inc. Magazine, and Above the Law. His thought leadership in NIL has earned him recognition as one of the foremost experts by The Wall Street Journal, USA TODAY, and On3, and he has been lauded as a “power player in NIL deals” by Action Network and a “top sports trademark attorney” by Sportico.

Darren’s passion for sports law led him to establish Sports Agent Blog on December 31, 2005, initially titled “I Want To Be A Sports Agent.” The platform, created as a New Year’s resolution, has grown into a cornerstone of the sports agency community, offering in-depth analysis of industry trends, legal disputes, and agent-player dynamics. His commitment to the field is further evidenced by his representation of numerous athletes and sports agents, as well as his prior role as an Adjunct Professor at Indiana University Bloomington, where he developed and taught a course on Sport Agency Management from 2011 to 2014.

Darren’s contributions have been recognized with prestigious honors, including the University of Florida’s 40 Under 40 Award, the University of Florida Levin College of Law’s Outstanding Young Alumnus Award, and designation as the best lawyer in Fort Lauderdale by Fort Lauderdale Magazine. He remains an active voice in the sports law community, sharing insights through his weekly NIL newsletter and his X posts, engaging a broad audience on legal developments in sports.

One reply on “Rookies “Earning” The Extra 20% Over Slot”

This isn’t a coincidence:
Spurs have won 4 championships in the past 11 seasons.
Grizzlies (Vancouver & Memphis) franchise has been to the playoffs just 3 times in 15 seasons, and has not won a playoff game.

This is a clear cut example of how success is built from the top, and the Spurs management has the right idea. Why give players an extra 20% in salary, when they have yet to play a single NBA game? Providing performance incentives for a salary increase is probably one of the best ways to inspire a player to work harder and improve their game.

Kudos to the San Antonio Spurs front office staff.

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