The NBA’s new designated-veteran-player rule hasn’t exactly worked as intended.
DeMarcus Cousins, Jimmy Butler, Paul George and Kyrie Irving have all been traded before eligible to sign a designated-veteran-player contract. Though each situation is unique, teams might be leery of paying the super max well into a player’s 30s. If eligible, players would likely demand the maximum available salary, though. And, obviously, not all players are enticed by the possibility of a super-max deal, anyway.
But the Wizards signed John Wall to a designated-veteran-player extension, which projects to be worth a whopping $169 million over four years.
In brokering this deal, the Wizards had to project how Wall’s game will develop over the course of the next five or six years. That’s a long time, but as team president Ernie Grunfeld explained in detail, they feel very comfortable about Wall’s future.
“Thirty is still very young in the NBA nowadays. But we’ve seen John grow every single year. He’s improved every year he’s been in the league. The last four years he’s been an All-Star. This past year he was an elite-level player making the All-NBA team. He’s improved his shooting, he’s improved his knowledge of the game. The game has really slowed down for him. His first two or three years he was just up and down the floor trying to get to the basket and get layups. Now he reads the floor and he reads the situations and makes the right plays at the right times,” Grunfeld said.
There are three primary reasons a designated-veteran-player extension makes more sense for Wall and the Wizards than most cases:
1. Wall is particularly young for someone with his experience level. He was just 19 when drafted. Players can’t receive a designated-veteran-player salary until their ninth season, when many of them are already or close to declining. Wall’s extension will kick in for his 10th season, when he’ll be just 29.
2. Wall’s extension added just four years to his contract. A designated-veteran-player extension must bring a player’s contract to a total of six years. Because Wall still had two years left on his deal (not possessing a player option on his rookie-scale extension), his latest extension added just four years at the super-max salary. That’s far less risky for the team. It would have been risky for Wall to wait until next summer to sign, as he’d have to make another All-NBA team to remain eligible for the super max.
3. Washington already committed to max contracts for Otto Porter and Bradley Beal that run through the first two seasons of Wall’s extension. Ian Mahinmi is still on the books for more than $15 million during the first. Even without extending Wall, the Wizards might not have had significant cap flexibility. Better to keep their franchise player.
Will Wall be worth $47 million at age 32? Probably not. Will he be worth $44 million at age 31? I wouldn’t take that bet.
But Washington might get enough surplus value during the first two years of the extension, when Wall projects to earn $38 million and $41 million, to make it worthwhile. More importantly, players of Wall’s caliber aren’t easily attainable. Even if his salary outpaces his production, the Wizards couldn’t simply find a fair-value replacement who even nears Wall’s output. There’s simply value in having him.