Cade Cunningham could guarantee $45 million bonus in 2024-25 thanks to little-known NBA rule after signing new contract with Pistons

DETROIT Pistons star Cade Cunningham earned a monster contract this offseason thanks to a loophole in NBA rules.

NBA players can sign certain contracts after completing several years in the league, but a rule could bypass this.

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Cunningham agreed to a five-year, maximum $224 million rookie contract extension on Tuesday.

That contract could grow to as much as $269 million next season.

Cunningham had a spectacular season despite the Pistons being a historically bad team.

He averaged 22.7 points, 7.5 assists and 4.3 rebounds during his third season in the league.

Cunningham was an integral part of the Pistons’ offense and ranked top 10 in the NBA in touch length, touch dribbles and on-ball screens.

His impressive play is what earned him a huge contract extension, but if he continues to improve, that will grow even more.

The NBA’s collective bargaining agreement contains a clause that is affectionately called the Derrick Rose rule.

The rule was created after Derrick Rose won the MVP award in his rookie contract.

Previously, players on their rookie contracts could only sign extensions worth up to 25% of a team’s salary cap.

With the Rose Rule, players can now earn up to 30% of their team’s salary cap based on their performance.

These three scenarios allow a player to sign a contract worth 30% of his team’s cap hit:

• The player was named to the All-NBA team last season, or two of the last three seasons.
• The player was named Defensive Player of the Year last season, or in two of the last three seasons.
• The player has been named MVP in any of the last three seasons.

However, it is extremely difficult to achieve these margins in the first three seasons, so there is another way for a player to increase his value.

These three scenarios allow a player to increase the value of his contract based on the fourth season:

• The player’s salary becomes 27 percent of the cap if he is named to the All-NBA Third Team.
• A player’s salary becomes 28 percent of the cap if he is named to the All-NBA Second Team.
• The player’s salary becomes 30% of the cap if he is named to the All-NBA First Team.

Some players have signed contracts in which any of the three All-NBA teams increases the value of the contract.

There are similar rules regarding contract rules for veterans who fall under the designated veteran role.

They follow almost the same criteria, but allow a salary of up to 35% of the cap.

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