In the NBA’s evolving financial landscape, the announcement of All-NBA teams carries critical weight beyond prestige, directly affecting player earnings and team salary strategies. Jaren Jackson Jr.’s omission from this year’s All-NBA teams on Friday puts both his contract prospects and the Memphis Grizzlies’ salary cap maneuvering at risk. The league’s intricate system allows qualified players to increase their maximum salary tiers based on accolades like MVP awards, Defensive Player of the Year honors, and All-NBA selections, often enabling them to reach higher salary benchmarks earlier than their years of service would otherwise allow.
Players with four to six years of experience can normally negotiate contracts starting at 25% of the salary cap, while those with more experience qualify for larger starting percentages—30% for seven to nine years, and 35% for ten or more. Earning elite honors lets players “jump” ahead to these higher tiers prematurely, which dramatically boosts their contract value when combined with annual 8% raises. This financial structure creates a pivotal moment around All-NBA announcements, as they often define multi-million dollar differences in contract earnings.
Jaren Jackson Jr.’s offseason outlook deteriorates without coveted All-NBA status
Jackson faces a particularly challenging summer after missing out on All-NBA recognition despite early-season expectations that almost guaranteed his inclusion. As a former Defensive Player of the Year and All-Star, Jackson was poised to qualify for a supermax contract that would have bypassed standard extension rules, enabling a significant salary increase and securing long-term commitment from Memphis. Instead, his current rookie extension, signed in 2021, starts well below market value and even decreases annually, with his 2024-25 salary projected around $23.4 million.
A typical veteran extension permits a 40% raise on the player‘s current salary; however, because Jackson’s salary begins notably under the max, this raise only lifts him to roughly $33 million, far less than his true market worth. The supermax would have allowed an immediate jump, but without it, Jackson and the Grizzlies must consider alternative strategies to reach a fair contract level.
Memphis anticipated this risk and created cap space by using their 2025 first-round draft pick to trade Marcus Smart, freeing approximately $17.5 million in cap room. This cap space enables the Grizzlies to renegotiate Jackson’s salary prior to extending him, circumventing some veteran extension limits. However, this approach requires the team to renounce all their other free agents, including Luke Kennard and Santi Aldama, who are valuable assets. This costly trade-off highlights how crucial the All-NBA selection was for maintaining roster stability.
Even with the additional cap space, Jackson’s new deal would top out around $40 million annually—still under his maximum salary, which is projected at over $46 million based on the salary cap forecast. Jackson faces a difficult choice: accept a less lucrative contract now with security or bet on playing out the 2025-26 season and entering free agency in 2026 at an expected max salary near $51 million, enabled by Bird Rights, possibly with Memphis or other teams like the Los Angeles Lakers actively pursuing him.
For the Grizzlies, the stakes are high. The decision to trade Jackson might come into play if they believe his value will diminish or if they want to avoid losing him for nothing after the next season. All-NBA omission leaves Jackson as one of the offseason’s most pivotal figures and places Memphis in a complicated salary cap and roster management position.
Cade Cunningham and other young stars benefit from All-NBA recognition
While Jackson’s case is fraught with uncertainty, Cade Cunningham’s contract situation reflects a clear success this year. Cunningham secured a spot on the third All-NBA team, activating the Derrick Rose Rule in his rookie extension, which increases the starting point of his contract from 25% to 30% of the salary cap. This bump translates to a contract increase from $224 million to $269 million, a considerable financial leap for the Oklahoma City Thunder’s rising star.
Evan Mobley, another 2021 draftee, also reached this $269 million threshold, though his raise was due to winning Defensive Player of the Year rather than an All-NBA nod. This achievement imposes salary cap challenges for the Cleveland Cavaliers, pushing them well beyond the league’s secondary salary cap limits, but it solidifies Mobley’s status as a franchise cornerstone worthy of that investment.
Two other prominent 2021 draftees, Scottie Barnes and Franz Wagner, did not receive All-NBA honors this season. Barnes was realistically never in strong contention, so he remains on a $224 million deal, while Wagner’s promising season was derailed by injury and he also stays at the lower level. Both players are nonetheless well-paid and should remain important contributors with reasonable contracts in place.
OKC’s mixed financial outlook amid star development and record-breaking contracts
Oklahoma City faces a blend of encouraging progress and costly obligations tied to its young core. Jalen Williams made an All-NBA team this season in just his third year, a feat surpassing Cunningham and Mobley by a year. Unfortunately, Williams does not yet qualify for an automatic contract increase through the Derrick Rose Rule because it requires an All-NBA selection in the season before a new deal or twice in the preceding three seasons.
Williams can negotiate a rookie extension this summer but must accept a contract structured similarly to Cunningham’s initial deal—starting at 25% of the cap with an escalator to 30% if he earns All-NBA honors next season. If he secures another All-NBA nod in 2024-25, the higher percentage will then kick in for his subsequent contract.
The more immediate financial impact for OKC involves MVP Shai Gilgeous-Alexander, who won the prestigious award and triggered his supermax eligibility. His next contract, expected to be signed next offseason, is projected at an unprecedented $380 million over five years, averaging $76 million annually. This makes Gilgeous-Alexander’s salary one of the largest in sports history, nearing $1 million per game played.
This historic figure heightens the Thunder’s salary cap pressure, especially if Williams or fellow young star Chet Holmgren secure All-NBA designations next year. The organization has anticipated these rising costs and constructed its roster accordingly by holding numerous draft picks for affordable depth and planning to potentially trade role players such as Isaiah Hartenstein, Lu Dort, or Alex Caruso to manage payroll. The Thunder’s approach reflects a long-term strategy to maintain competitiveness despite escalating star salaries.
Anthony Edwards positions himself for future lucrative extension
Minnesota Timberwolves star Anthony Edwards remains early in his contract timeline, with four years until free agency and eligibility for an extension coming next summer after three years with the team. Edwards appears unlikely to hasten contract decisions that would restrict his flexibility but could benefit substantially if he secures All-NBA recognition this season and repeats the achievement next year, unlocking the possibility of a supermax extension.
If that scenario materializes, Edwards stands to earn a contract worth approximately $360 million over four years, equivalent to $90 million annually, a salary exceeding $1 million per game. Such earnings align with the broader impact of the NBA’s new television agreement and collective bargaining provisions, which allow up to 10% annual increases in the salary cap.
This cap growth will amplify the value of accolades like All-NBA selection, rendering these honors worth ever greater financial rewards in the years to come.
Broader implications of awards season on NBA contracts and team planning
The 2023 All-NBA announcements illuminate the increasingly complex and high-stakes interplay between player rewards and team financial management. For players like Jaren Jackson Jr., missing All-NBA status carries serious contract and career uncertainty, while others such as Cade Cunningham enjoy substantial financial advancements thanks to their selections.
Teams are consequently forced to navigate a labyrinth of salary cap rules, potential trades, and roster sacrifices to align their ambitions with the new realities of player compensation. For franchises like Memphis and Oklahoma City, the offseason will involve crucial decisions around contract extensions, free agency strategies, and potential trades to comply with cap constraints while attempting to build sustainable contenders in an environment where player salaries are reaching historic heights.
As rookie extensions tied to the Derrick Rose Rule and supermax eligibility become more consequential and tied to awards like All-NBA, Defensive Player of the Year, and MVP honors, the outcome of seasons and voting takes on deep financial meaning. This dynamic will continue shaping the NBA’s competitive landscape, with players and teams adjusting to unprecedented salary scales and cap challenges in coming years.