The Derrick Rose Rule

2011, 22-year old Derrick Rose won the MVP, becoming the youngest player ever to achieve the feat. That year, he was on his rookie contract which meant he was still earning a relatively low (by league standards) salary of about five and a half million.

Seeing a need to reward exceptional performance by rookie players, the NBAA began negotiations that would allow such players to earn more. The new exception was added to the CBA and was named the “Derrick-Rose -Rule.” The rule is officially named “5th Year 30% Max Criteria.” The new rule allowed players who had just completed his rookie contract the opportunity up to 30% of the salary cap rather than the usual 25% that other rookie players
are eligible for. In order to be eligible for the Rose Rule, one has to meet one of three criteria.

The first option is for the player to appear in any All-NBA team. The second qualification is that the player is named to the All-Star team twice and finally, the player can win the regular season MVP. A player is allowed to sign a Rose Rule contract before the final year of his rookie contract and meeting the full criteria. If the player does not fulfil the criteria before he reaches Designated Player status, he receives a normal five-year contract at 25% of salary max. When it was first passed, only Rose was eligible for rule enabling him to sign the maximum extension. He was of course the first beneficiary of the rules, getting a five year extension with the Bulls that year worth $94 million.

However, he would still have qualified for a 30% max because he was in his third year when he made MVP. Blake Griffin and Paul George were two other players to benefit from the rule, signing with the LA Clippers in 2013 and the Indiana Pacers in 2014 respectively. Both of the players have since been traded to other teams. The new rule allowed players who had just completed his rookie contract the opportunity earn up to 30% of the salary cap rather than the usual 25% that other rookie players are eligible for.

In order to be eligible for the Rose Rule, one has to meet one of three criteria. The first option is for the player to appear in any All-NBA team. The second qualification is that the player is named to the All-Star team twice and finally, the player can win the regular season MVP. A player is allowed to sign a Rose Rule contract before the final year of his rookie contract and meeting the full criteria.

If the player does not fulfil the criteria before he reaches Designated Player status, he receives a normal five-year contract at 25% of salary max. When it was first passed, only Rose was eligible for rule enabling him to sign the maximum extension. He was of course the first beneficiary of the rules, getting a five year extension with the Bulls that year worth $94 million.

However, he would still have qualified for a 30% max because he was in his third year when he made MVP. Blake Griffin and Paul George were two other players to benefit from the rule, signing with the LA Clippers in 2013 and the Indiana Pacers in 2014 respectively. Both of the players have since been traded to other teams.