What is the difference between restricted and unrestricted free agents in NBA?

NBA free agency is right around the corner, and as the Milwaukee Bucks prepare to host Game 6 of the 2021 NBA Finals, the 28 other teams have started their off-season work to upgrade their rosters.

Free agency is a major part of any professional sport, and the NBA has its own set of rules about free agents. A lot of big names are a part of the NBA free agency market this off-season, so a lot of players could don new jerseys next season.

There are two types of free agency in the NBA - restricted and unrestricted - so let's dive into what they are and their differences.

What is restricted free agency in the NBA?

Lonzo Ball is a sought-after restricted free agent in the 2021 NBA off-season.

In the NBA's restricted free agency, a player can sign an offer sheet with any team that offers him a deal. But the player's original team has the 'right of first refusal', which means the parent team can retain the player by matching the new team's offer.

In this scenario, the players aren't fully independent in the market, and a large part of their free agency is dictated by their original team.

The New York Knicks currently seem like the “front-runners” to sign Lonzo Ball in free agency this offseason, a source tells @HoopAnalysisNet. Ball is a restricted free agent and the New Orleans Pelicans could match any offer sheet the 23-year-old guard signs. #NBA #NBATwitter

— Brett Siegel (@BrettSiegelNBA) July 4, 2021

Former first-round draft picks in the fourth year of their rookie-scale contracts enter restricted free agency, and two-way contract players who have been on an active or inactive NBA roster for more than 15 days in the season beforehand do so too.

The restricted free agents can either accept the deal their original team matches or negotiate a new deal with their potential or original team. They can also negotiate a sign-and-trade or play one season for their original team and become unrestricted free agents the next summer.

What is unrestricted free agency in the NBA?

Spencer Dinwiddie is a coveted free agent point guard this summer.

Players who enter unrestricted free agency have the liberty to sign with any team they wish to.

They can accept offer sheets from any NBA franchise, and their original team has no right to match that offer. Players enter unrestricted free agency in the NBA after their contract expires and they don't sign an extension or they are waived by the team. Players decline the final-year player options on their current deals to enter unrestricted free agency.

However, in a few cases, unrestricted NBA free agents have options on their contracts, which, if exercised, tend to impact their choices.

The first domino to fall in the Denver Nuggets offseason has. Will Barton has declined his player option for next season, entering unrestricted free agency. Now what?#NBA #MileHighBasketball #NuggLove https://t.co/RRmhy2PYk7

— Nugg Love (@Nugg_Love) July 18, 2021