Following up on our recent post about inflation adjusted salaries, I decided to take a look at how NBA player salaries adjusted for inflation and by experience varied across time.
- salary increases with experience up until about year eight, plateaus until around year eleven, then declines until retirement
- rookie salaries (years 0-2) have increased over the years
- years 3-9 peaked in the late 90s to early 00s
- years 10-14 have been trending upward over time
- years 15-20 are somewhat trendless, due to small sample sizes
- salary increases mirror player development, albeit with a few years’ lag
- salaries for young players (0-3) have no doubt been affected by the rookie scale
- particulars of the CBAs affecting years 4-9?
- younger players (high schoolers) and medicine might explain the trend in years 10-14