New CBA Restrictions Could Incentivize Teams To Use All Draft Picks

While the official documents of the new CBA (Collective Bargaining Agreement) have yet to surface online in any official capacity, we do know the NBA will be undergoing some significant changes to its financial structure.

The implementation of a second apron, and the restrictions that come with it - both in terms of trades and contracts - seemingly leads to draft picks becoming more valuable than they have been for quite some time, as players on first-round rookie contracts are cost-controlled for four years.

Needless to say, for expensive teams, having players who are likely to outperform their contracts for almost half a decade is an asset.

As such, it would make sense for teams with multiple selections in this year's draft to consider making all of them, and keep costs down.

Yes, teams are usually hesitant about bringing on too many young players all at once, but there are ways of getting around that. To flesh this out, we'll be using the Indiana Pacers as an example, given that they're currently in possession of three picks in the first round (Nos. 7, 26, and 29), and two picks in the second round (Nos. 32 and 55).

Bringing on two rookies is fairly standard, but five is atypical. And yet, it might be in Indiana's best long-term interest to make all those selections, and sticking with them.

The seventh overall selection will have a fairly large compensation package due to its position in the picking order, but 26 and 29 will be outright cheap. If the Pacers are disinclined to bring on five rookies, 26 and 29 present unique opportunities to draft young, international players who are willing to spend a year or two abroad developing.

In theory, both Nikola Đurišić (Mega Basket, Serbia) and James Nnaji (Barcelona, Spain) should be available in those spots, and if the Pacers could agree with both players to spend a year or two overseas - perhaps even together on the same team - that would allow them two things:

They wouldn't be overcrowded with rookies looking for opportunities, and they can even push their salary cap commitments to them to later, which will help them streamline their spending.
When Đurišić and Nnaji do come over, they'll be better players, and would help inject a steady stream of incoming talent for the Pacers.

Do note: If a team wish to retain rights to their draft selections, they do need to offer those players a contract every single year. Here, the players would have to reject the offer as part of a prearranged agreement with the team.

This brings us to the second round of the draft. At No. 32 the Pacers have essentially another pseudo first-round selection just in terms of selection quality. However, second-round selections do not come with a set rookie scale, which is why - in this scenario - we're using two first-round players to stash overseas.

The players selected at both No. 32 and No. 55 will be subject to either minimum salaries, two-way contract arrangements, or in the event that the Pacers absolutely love their selections, a part of an exception.

Here's what important to remember, however. Unlike with first-round selections, players in the second round do not come with four years of control.

Let's say the Pacers select Kobe Brown with the 32nd pick. If they have a good feeling about him, they will need to sign him to no more than three years as to retain Restricted Free Agent status on him. If they sign him to four years, with no options, Brown will be a fully unrestricted free agent by the conclusion of his contract. This is how the Dallas Mavericks lost Jalen Brunson.

The Denver Nuggets, on the other hand, had the foresight to put a fourth-year team option in Nikola Jokić's initial contract, which they declined. That way, they had matching rights on Jokić should another team come sniffing around.

It might seem odd that the Pacers - in this scenario - should stash the first-round talent, but that's due to the contract "staying alive" for two seasons. If a player selected in the first round goes beyond three years without an NBA contract, he's no longer bound by the rookie scale.

The Chicago Bulls drafted Nikola Mirotić, via Houston, in 2011 as the 23rd overall pick. He then spent three years playing for Real Madrid before coming over, and the Bulls had to pay him over $5.5 million per year over three years, an amount substantially higher than the rookie scale for the 23rd selection would normally be.

The Pacers would have to keep Đurišić and Nnaji overseas for no more than two seasons, and instead use their second-round draftees - plus their seventh overall selection - as their rookie trio for the 2023-2024 season.

Financially, this could become a major asset for them. The players selected in the second round will come cheaply, and in the case of the player chosen 55th, Indiana can presumably load that contract up with team options or partially guaranteed salary until they wish to properly commit.

They might have to dig a little deep to compensate the 32nd selection (Kobe Brown in our hypothetical), as any agent worth their salt will ask for a higher annual salary if the Pacers wish to keep him around for three years.

My advice to the Pacers? Do it. This is a deep draft, and there's a reasonable chance that the player selected with the 32nd pick is worth keeping around. If that's going to cost you a total of $6-8 million guaranteed over three years, so be it. If that player pops, you'd want to have matching rights by 2026.

In short: There is a way for teams to have their cake and eat it too. They just have to plan ahead first.

Unless noted otherwise, all stats via NBA.com, PBPStats, Cleaning the Glass or Basketball-Reference. All salary information via Spotrac. All odds courtesy of FanDuel Sportsbook.

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