PSA: There is a difference between a Max Extension and Max Contract

[The thread from earlier today talking about whether we should give Fred his max extension of 4/114m](https://np.reddit.com/r/torontoraptors/comments/wnhn62/should_we_give_fred_van_vleet_a_max_contract/) had some comments that were something along the lines of “No, Fred isn’t a max player” which is a ill-informed response. The term max gets thrown around and I think most people jump to the idea of these big 200m contracts. Not all maxes are the same in the NBA.

Per the CBA (via the CBA Breakdown website), for non-max veteran players:

> The player’s salary in the first year of the extension may be up to the greater of: (i) 120% of the player’s salary in the last year of the original contract, and (ii) 120% of the estimated average player salary in the year the extension is signed. Salary may increase (or decrease) in the extended term by up to 8% (instead of 5%) of the salary in the first year of the extension.

[Source](https://cbabreakdown.com/contract-types)

Fred’s salary this upcoming season is 21.25m, which means his maximum he’s eligible for in an extension would be 25.5m as a starting salary in 2023-24, and with 8% raises, would total 4 years, 114m. THIS is a max extension.

For free agents, a max contract is dependent on years pro. Fred will be entering his 8th season when he’s a FA, [meaning he’s eligible for 30% of the cap.](https://www.sportingnews.com/ca/nba/news/nba-free-agency-salary-cap-luxury-tax-contracts-2022/lzqytpbdzvabb2by63gn987p) The salary cap for 2023-24 is currently projected to be [133m](https://www.sportsbusinessclassroom.com/examining-the-nbas-133m-salary-cap-projection-for-2023-24/), which means that Fred’s maximum he’s eligible for would be a starting salary of 39.9m, and a total of 5 years, 234m. THIS is a max contract.

So Fred’s max extension that he’s eligible for right now is 4/114m. If he hits FA next year, he’ll be eligible for 5/234m. There is a significant difference between these deals. I don’t think anyone thinks Fred is worth a max contract, but a max extension is a different thing.

If Fred is willing to sign that deal, we should consider ourselves lucky. With reports indicating the salary cap could be [171m in 2025](https://nba.nbcsports.com/2021/09/19/next-nba-tv-streaming-deal-could-lead-to-175-million-salary-cap/), that 4/114m would be about 16-17% of the salary cap at that point, which is similar, if not less, to the % of the cap his current contract takes up.

I think the question shouldn’t be “Should we give Fred a 4/114m extension?”, it should be “Would Fred even sign a 4/114m extension?”. Given the expected cap spike, I wouldn’t expect him to. I wouldn’t be shocked if the Raptors have already offered it, and Fred is either thinking it over, or has declined it, choosing to enter FA next year.