Assessing The Risk On Extension Decisions

Source: Rob Mahoney, Sports Illustrated

NBA dealsSix players from the 2010 draft class received extensions: Indiana’s Paul George, Washington’s John Wall, Sacramento’s DeMarcus Cousins, Milwaukee’s Larry Sanders, Utah’s Derrick Favors and Memphis’ Quincy Pondexter. Detroit’s Greg Monroe, Utah’s Gordon Hayward and Phoenix’s Eric Bledsoe were among the players who didn’t agree to extensions, making them restricted free agents next summer, when their current teams will be able to match any offer.

On the team side, the process of completing an extension is tricky business. Projecting the long-term value of any player in his early 20s is challenging enough, but market influences, salary-cap implications and the sensitivity of the player in question add complexity.

It’s a perilous attempt to balance risk and reward, with the former looming over all because an agreement is struck a full year before taking effect.