How does team option work in the NBA? Taking a closer look

NBA contracts have evolved a lot over the years, from the amount offered to players to factors involved with trade conversations. Usually, when it comes to league contracts, they have an agreed salary with its duration. The duration includes the year where the player is eligible to be a restricted free agent or an unrestricted free agent, along with the team option.

With that said, how does team option work in the NBA? According to the NBA's website, it makes a team eligible to maintain a player on their roster for another year. An example used is if a player is signed to a three-year contract that includes a team option for a possible fourth season, then that can be exercised to extend the contract to another year.

However, if the team option isn't exercised before the start of the fourth season, then the player's contract ends at that point.

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Additional aspects involved with the team option in the NBA

When it comes to the team option, it is not a conditional option in a player's contract. According to the NBA's website, once the option is agreed upon by both parties, it cannot be taken back or rescinded.

Additionally, conditional team options are also not allowed in the league. Meaning, that a player is eligible for a team option only if he fulfills certain parameters such as stats or awards are not included in the stipulations of the team option.

The league also mentioned that the team option can only be done in one year. However, rookie-scale contracts are much different. First-round picks with rookie-scale contracts have the choice to exercise the team option in either the third or fourth year of the contract.

There are a number of players in the league with a team option in their contracts, here's a look at some of these players:

Luke Kennard (SG) - Memphis Grizzlies
Jalen Green (SG) - Houston Rockets
Cam Thomas (PG) - Brooklyn Nets
Bones Hyland (PG) - Los Angeles Clippers
Alperen Sengun (C) - Houston Rockets
Scottie Barnes (PF) - Toronto Raptors
Cade Cunningham (PG) - Detroit Pistons
Josh Giddey (PG) - Oklahoma City Thunder
Trey Murphy III (PF) - New Orleans Pelicans

A recent team option that was exercised was Shaedon Sharpe's contract with the Portland Trail Blazers, as per the team's X account.

About the author

Jone Mallorca is an NBA journalist at Sportskeeda who is deeply passionate about the Boston Celtics. A graduate in Communication, Jone's penchant for debates and love of sports articles sparked his interest in journalism.

A devoted fan of Jayson Tatum since his rookie days, Jone admires Tatum's competitive spirit and ability to thrive under pressure. He holds Bill Russell in high regard as his favorite coach and cherishes Derrick White's 2023 Game 6 winner against the Miami Heat as his favorite basketball moment.

In reporting, Jone's strength lies in historical perspectives, where he offers unique angles on games and moments through the years. He ensures accuracy, relevance, and ethics in his reporting by cross-checking sources for factual content.

In his spare time, Jone indulges in deep-dive videos of NBA games on YouTube and post-game interviews.

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Edited by Debasish