National Basketball Association

Zion Williamson's rookie max deal no longer guaranteed for final three seasons

Published Dec. 21, 2023 2:31 p.m. ET

When New Orleans signed Zion Williamson to a five-year rookie max contract extension in July 2022, the Pelicans recognized the risk of a long-term investment in a young All-Star who had missed significant time throughout his first three seasons, including the entire 2021-22 campaign.

Therefore, the Pelicans negotiated major hedges in the contract that related to Williamson's health and conditioning if he were to miss time moving forward. After Williamson played in just 29 games last season, the final three years of his extension are no longer guaranteed, according to The Athletic.

The contract clause, which Williamson triggered by missing more than 22 games last season, turned the salary he is owed for the 2025-26, 2026-27 and 2027–28 seasons from guaranteed to non-guaranteed. As a result, New Orleans possesses the contractual power to waive Williamson after the 2024-25 season without financial ramifications.

If Williamson misses significant time this season, his guaranteed salary for the 2024-25 season could diminish as well.

Currently, Williamson is in the first year of his five-year extension, and has played in 23 of the Pelicans' 28 games this season, averaging 22 points in 30.5 minutes per contest.

Outside the shift in non-guaranteed salary over the final three years, the 23-year-old could lose more guarantees if his weight and body fat percentage don't meet the sum of being less than 295, according to the contract. Last season, Williamson weighed 285 pounds, which means his body fat percentage could not be higher than 10 percent.

The contract also protects New Orleans if Williamson suffers any further issues with his fifth metatarsal in his right foot, which he had previously injured. If he sustains a fracture or a stress injury to that bone, or the healed callus, or experiences other related issues, then half of his base salary for the 2024-25 season will no longer be guaranteed if the Pelicans released him.

However, there are opportunities for Williamson to have portions, or even his entire contract, become guaranteed again. If Williamson passes all six weigh-in checkpoints for the 2024-25 season, then 20 percent of his salary for the 2025-26 season becomes guaranteed again. He can earn another 40 percent if he plays in at least 41 games in 2024-25, and an additional 20 percent if he plays in at least 51. Williamson can earn back the final 20 percent of his guaranteed salary for the 2025-26 season if he plays in at least 61 games, and can earn back portions of his salary for the 2026–27 and 2027–28 seasons by hitting those same milestones.

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The contract also includes various vesting dates that tie Williamson and the Pelicans together. If New Orleans doesn't waive Williamson on or before Jan. 7 during the 2024-25 season, then his salary becomes guaranteed for that year. Williamson's 2025-26 salary is also protected if he isn't waived on or before July 15, 2025. The same clause will ensue for the final two seasons if Williamson isn't waived on or before July 15, prior to the start of the 2026-27 and 2027–28 seasons.

The complexity of Williamson's multi-layered contract is uncommon in the NBA, but protects New Orleans from the worst-case scenarios pertaining to the star's health and conditioning. And while Williamson has certainly given the Pelicans reason for concern, the franchise clearly hopes its No. 1 overall pick in 2019 will excel on the court for the duration of his contract.

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