Report: Nuggets and NBA discussing Kenneth Faried’s extension, could drop to four years

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Apparently, the Nuggets and Kenneth Faried reached an agreement on a five-year, $60 million extension.

One or both sides leaked the details to Yahoo Sports’ Adrian Wojnarowski, who reported on it.

The problem: Such a deal violates the Collective Bargaining Agreement.

Now what?

Adrian Wojnarowski of Yahoo Sports:

I don’t find it ambiguous.

Here are the relevant excerpts from the CBA:

Article IX, Section 1:

(b) an Extension of a Rookie Scale Contract with a player other than a Team’s Designated Player may cover, in the aggregate, up to but no more than five (5) Seasons from the date such extension is signed, and (c) a Designated Player Rookie Scale Extension with a Team’s Designated Player must cover six (6) Seasons from the date such Extension is signed. For the avoidance of doubt and consistent with Article VII, Section 9(a)(2), the maximum Contract and Extension lengths described herein are inclusive of any Option Year contained in a Contract or Extension.

Article I, Section 1:

“(p) “Designated Player Rookie Scale Extension” means an Extension of a Rookie Scale Contract entered into between a Team and its Designated Player that covers six (6) Seasons from the date the Extension is signed and provides for Salary for the first Salary Cap Year covered by the extended term equal to the player’s applicable Maximum Annual Salary under Article II, Section 7 (or, in the case of a First Round Pick who has satisfied or may satisfy the 5th Year 30% Max Criteria (as set forth in Article II, Section 7(a)(i)), provides for Salary for the first Salary Cap Year equal to twenty-five percent (25%) or thirty percent (30%) (or such other percentage between 25% and 30% as agreed upon by the Team and the player) of the Salary Cap (as calculated pursuant to Article II, Section 7) in effect during the first Season of the extended term), with annual increases in Salary for each Salary Cap Year following the first Salary Cap Year of the extended term equal to seven and one-half percent (7.5%) of the Salary for the first Salary Cap Year covered by the extended term.

Want that in a more digestible format? Here are the key excerpts from Larry Coon’s CBA FAQ:

Rookie scale contracts may be extended for up to four seasons beyond the last option season in the contract, bringing the total contract length to five seasons. Teams can also select one player (called their “Designated Player”) who can receive a five-year extension, bringing the total contract length to six seasons.

The salary in the first year of an extension to a rookie scale contract for a team’s Designated Player must be the player’s maximum salary.

Raises in a rookie scale extension for a team’s Designated Player must be 7.5%

This seems pretty straightforward to me. If the Nuggets sign Faried to a five-year, $60 million contract extension, the NBA should void the deal. I doubt the league lets them get that far, though.

Most likely, Denver and Faried will have to re-open negotiations on a shorter extension or max five-year extension. Maybe they’ll quickly reach another agreement, or maybe one side won’t budge in the face of these regulations. But these are the rules every team is working with as the Oct. 31 extension deadline nears.