In some cases, a playerвЂ™s max can exceed 25%, but thatвЂ™s getting into Rose rule territory, so weвЂ™ll put it on the back-burner for now.

The starting salary in a designated rookie extension must be worth at least 25% of the cap, which is typically the maximum salary for a player with fewer than seven years of NBA experience. There is no performance criteria required for a player to qualify as a designated rookie - his team just has to make the determination that heвЂ™ll be a designated player. However, the designated rookie rule allows a team to give a player five new years on an extension, for a total of six years. NBA contracts are typically limited to five total years, which means a player with one season left on his rookie contract could only get four new years tacked onto that deal. The designated rookie rule allows a team to sign a player entering the fourth year of his rookie scale contract to a longer extension than usual. HereвЂ™s a breakdown of how each rule works, and the differences between the two: While the Rose rule is frequently cited as the reason why the Celtics canвЂ™t trade for Davis during the 2018/19 league year, itвЂ™s actually the designated rookie rule that applies in that situation. These rules have been the subject of several Celtics-related discussions this season when the possibility of Boston acquiring Anthony Davis is broached.

The NBAвЂ™s designated rookie rule and the Derrick Rose rule (formally known as the 5th year, 30% max criteria) are two related вЂ“ but separate вЂ“ rules in the leagueвЂ™s Collective Bargaining Agreement that apply to players who are finishing up their rookie contracts.

Rule of rose explained