If you’re a fan of the NBA, then you know how complex the rules and regulations can be, as well as all the nuances that exist within those guidelines. However, this complexity is just one side of the coin; players and teams deal with contracts, trades, and so much more off the court, it becomes difficult to understand all the terminology and their implications.
In this article, we will be focusing on what it means when a player “opts out” of a contract. We will also include some other relevant terms with their explanations so you can get a full picture of what a player might be dealing with during free agency or contract negotiations.
| Term(s) | Definition |
| Opt In Opt Out | Opting in / out is related to something called player options. A player option gives a player the ability to decide if they want to stay for another year on their current team or become an unrestricted free agent. If a player opts in, then they will stay for that final year. If they opt out, then they become an unrestricted free agent and can sign with another team. |
| Restricted Free Agent | A player who is a restricted free agent can sign with any time during this period, but if their original team matches the new offer, then they can retain the player |
| Unrestricted Free Agent | As the name implies, an unrestricted free agent is able to sign with any team of their choice |
So now that you have a grasp as to what these terms mean, it would be useful to get some context as to why players would take these actions. Below, we’ve provided some situations to strengthen your understanding.
Why Would A Player Opt In Or Opt Out Of Their Contract In The NBA?
When players first sign with a team, their contracts are normally valued at what the team thinks the player’s current and prospective value is. Over the course of that contract, the player will likely either exceed or fall behind those expectations set out in the contract.
In the event that the player performs beyond what was initially expected, they would likely choose to opt out of their final year in hopes of signing a new contract with their current team or sign with a new team. In either scenario, it will allow that player to lock in a larger payment sooner rather than at the end of their full-term contact.
If the player is not performing as well as their team initially thought (player is constantly injured, they aren’t scoring well, etc.), it might be in their best interest to Opt In and stay for the additional year at their current salary. Not only will this likely be their best financial option, but it will provide them some additional time to increase their value in hopes of signing a better deal at the end of their full contract.
Why Would A Player Want To Become A Restricted Free Agent?
Restricted Free Agency is a lot less of a contract negotiation than its counterpart, and has specific criteria for how it occurs. At the end of the day, it seems intuitive for a player to want unrestricted free agency than to have limitations on what they can do with an RFA. You can see more about what qualifies a player to have RFA, as well as its options on this NBA post.
Conclusion
The business side of basketball can be pretty complex and often involves a lot of terminology that the regular basketball fan may not completely understand. While it may not seem like a player opting in or out of a contract has significance to us viewers, it actually can give us an idea of if our favorite players will remain with a team or decide they want to take their talents elsewhere. It also allows you to plan ahead by purchasing tickets to see them play if you think it will be their last season with their current team.
So next time you hear about a player opting out of their contract, you can have a better idea of what implications come with this decision.