The only team better than the Cleveland Cavaliers in the regular season last season was the Oklahoma City Thunder. In signing their young two-way big man Chet Holmgren to a new contract, the Thunder did what the Cavaliers could not do with theirs: hold back the Rose Rule provision. The difference could decide championships.
The Cavaliers did an admirable job this offseason of navigating the realities of maintaining a contending team in the new NBA salary cap environment. The Cavs won 64 games last season and are the early betting favorite in a wide-open Eastern Conference next season, so it is absolutely fair to characterize their current roster as a contender.
Yet they are also quite expensive, pushing above the second tax apron heading into next season. That is In large part due to breakout star Evan Mobley going from a rookie contract to his designated rookie extension that will pay him AMOUNT next season, a full 30 percent of the league’s salary cap.
The reason that his contract hit such a high mark was that Mobley and his representation negotiated into his deal a “Rose Rule” provision. Written into the league’s rulebook and named after Derrick Rose, Rose Rule language in a contract allows the deal to go above the 25 percent maximum for players coming off of their rookie contracts if they meet certain criteria. Those include winning MVP (as Rose himself did), making an All-NBA team or winning Defensive Player of the Year.
When Mobley agreed to a contract extension last summer, not only did he sign a maximum rookie extension, but it included Rose Rule language to bump the deal up if he made All-NBA or won Defensive Player of the Year. When he had a breakout season and in fact won Defensive Player of the Year, his salary ballooned up — and ensured the Cavaliers would be in the second tax apron this season.
To their credit, Cleveland has navigated those waters well. They let Ty Jerome walk but replaced him with a combination of Lonzo Ball and rookie Tyrese Proctor, while bringing back Sam Merrill and signing old friend Larry Nance Jr. They will be the most expensive team in the league next season, but they probably improved their roster — and certainly their lineup versatility — despite the team-building restrictions.
Still, if Mobley were making $8 million less per season it would be a significant help. And to say that’s an unfair hypothetical to entertain, just look at few states to the west, where the reigning champions just managed to pull it off.
Chet Holmgren doesn’t have Rose Rule language in his contract
Chet Holmgren is one of the league’s best defensive players and demonstrated that as a key piece of an Oklahoma City Thunder team that went all the way and won the NBA Finals. Holmgren, eligible to sign a rookie extension this summer, was in a similar position to Evan Mobley: huge potential, clear defensive impact, unrealized offensive game, and no true awards yet.
The Cavaliers looked at such a situation and handed Evan Mobley everything. At the time, many were saying that Cleveland could have negotiated harder and signed Mobley to a deal at less than the max, or at least not included the Rose Rule provisions.
The Thunder did what the Cavaliers could not in winning the title this season, and then they turned around and scored another victory by signing Holmgren to a flat max contract. Yes, he will earn 25 percent of the salary cap, a significant number, but it will not increase no matter how dominant Holmgren is this next season.
That is extremely helpful to a Thunder team trying to maintain a contender of its own, including two other max players in Jalen Williams and MVP Shai Gilgeous-Alexander. Knowing that Holmgren’s deal will stay at one place is an extremely helpful piece of planning and a negotiating win.
It is awesome for the Cleveland Cavaliers that Evan Mobley became a star and won multiple honors. It is painful for the franchise that in doing so he is significantly more expensive. It will make it more difficult to maintain and retool their team around Mobley. More money for him could mean less of a chance at a title.
The Thunder have a title and are now positioned to win more, including two other part because of savvy moves like the Chet Holmgren extension. They did what the Cavaliers could not, and it may pay off in a major way.