What triggers the 30% rule for veteran contracts?

The 30% rule is triggered by contracts signed during a capped year. This rule stipulates that when a veteran player signs a contract, their base salary in any given year may not increase by more than 30% over the previous year's salary. This mechanism is in place to prevent large fluctuations in team payroll and ensure competitive balance among teams.

In a capped year, teams have to manage their salary cap effectively, and the 30% rule provides a structured way to adjust veteran salaries without exceeding the cap. It maintains a level of consistency and fairness in how contracts are structured for players who have been in the league for a certain period.

While signing bonuses and performance levels can influence the overall value of a contract, they do not specifically trigger the application of the 30% rule. Similarly, while the length of the contract can have implications on salary cap management, the primary focus of the 30% rule is the annual salary increases governed during capped years. Thus, understanding this connection to capped years is crucial for recognizing when the 30% rule comes into play for veteran contracts.