What is a ‘Trade Kicker’ in the NBA? Kawhi Leonard Can Bank $160+ Million Using the Clause in Latest Contract

NBA players enjoy massive salaries, but their earning potential extends far beyond. Apart from lucrative brand endorsements, advertisements, and other ventures, there are several ways players can boost their income within the NBA. One common avenue is through incentives tied to meeting performance-based criteria or the newly introduced In-Season Tournament. Another method is the Trade Kicker, with Kawhi Leonard being the latest beneficiary.

Recently, Leonard inked a three-year, $153 million extension with the Los Angeles Clippers. The deal entails a payment of $52 million in the first year, followed by approximately $50 million per season for the next two years. However, the extension lacks a player option but includes a 15% trade kicker.

What is a Trade Kicker in the NBA?

A Trade Kicker is a contractual clause that states that if a player is traded during the duration of their contract, they are entitled to an increased amount beyond their originally negotiated contract. The 15% hike stated in Kawhi Leonard’s case is the most common percentage. However, several players in the league have signed a clause residing at lower figures as well.

Trade Kickers, beyond the numerical aspect, are a symbolic gesture indicating a team’s commitment to retaining the player throughout their decided tenure. From the players’ perspective, it acts as a form of future-proofing for their NBA careers.

Essentially, it creates a scenario akin to a no-trade clause, since no team wants to give away their cap space. Given the advantages, Trade Kickers presents a no-lose proposition for NBA players.

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How much can Kawhi Leonard earn from his Trade Kicker?

Ultimately, Kawhi Leonard could potentially earn an additional $7.5 million to $23 million through the Trade Kicker clause, on top of his $153 million contract.

Kawhi’s potential earnings from the trade kicker depend on the remaining years of his contract. For instance, if he gets traded after the first year of his deal, he would be entitled to 15% of his pay in the second and third years ($50+$50 million); amounting to $15 million. This amount would then be divided across his remaining contract years (in this case, 2 years).

Clippers fans would love to learn that Kawhi Leonard might not see a dime from his Trade Kicker clause. He has been with the team since 2019 and is now a core player within the franchise. However, while the chances of him being traded from the Clippers are slim, they’re not zero. Teams have made trades despite the inclusion of the clause in contracts earlier within the league.

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