NBA Free Agent: How Free Agency Works

In our Complete Guide to the NBA Market, we discussed the topic of Free Agency. Here, we go into more detail on this mechanism, which, along with the Draft, is one of the critical moments in the NBA Market.

The off-season is not only about discovering young talent, but also a crucial moment for signing contracts with Free Agent players.

What does Free Agent mean?

Free Agents are NBA players who are not under contract with any team or who have just finished their initial contract, and can therefore choose which team to sign with. In simple terms, they are uncoupled players.

The “freedom” to sign comes from the type of Free Agent, which can be either Unrestricted or Restricted.

Unrestricted Free Agent

Unrestricted Free Agents have no restrictions and can sign freely with any team. The salary figure varies depending on the availability in the team’s Salary Cap.

This type of Free Agent is usually the most sought-after during market windows, and due to the lack of restrictions in their contract terms, they have no obligations to their previous team.

The previous team does not have the right to know the offers from other teams and cannot block any potential signings or invitations from other rosters.

Restricted Free Agent

A Restricted Free Agent is a player who has finished his contract and can receive offers from any team, but subject to certain constraints that limit his freedom of choice.

The player is required to stay with his current team if the team matches the offer made by another franchise within 48 hours. The front office presents an initial offer and, in the case of First Refusal Rights, has the right to match or exceed any offers received from other teams.

Offer Sheet

An Offer Sheet is the agreement signed by a Restricted Free Agent with a new team. The terms of the agreement— which must last at least two seasons— are given to the player’s original team, which then has 48 hours to match the offer and retain the player.