The Early Days of NBA Salaries
In the inaugural NBA season of 1946, the league’s highest-paid player, Tom King of the Detroit Falcons, earned $16,500 annually. His salary included compensation not only for playing but also for managing team operations and handling publicity.
Dramatic Salary Growth
Since then, NBA salaries have skyrocketed. While steady increases were the norm for decades, the 2016 TV deal, worth $2.6 billion annually, caused salaries to surge by over 60% in just three years.
• 2021-22 Average Salary: $8.5 million
• 1990-91 Average Salary: Under $1 million
Salaries experienced consistent growth until the 2008 financial crisis and subsequent 2011 collective bargaining agreement, which reduced players’ share of basketball-related income from 57% to 50%. The 2016 TV deal reversed this slowdown, propelling average salaries from $5.2 million in 2016 to $8 million by 2019.
Position-Based Salary Trends
Historically, centers commanded the highest salaries from 1990 to 2000, with stars like Shaquille O’Neal and Patrick Ewing leading the way. From 2000 onward, power forwards often took the top spots. By 2020, however, point guards became the highest-paid players, with Stephen Curry, Russell Westbrook, and James Harden topping the list in 2022.
• 2022 Position Averages:
• Point Guards: $10.8 million
• Shooting Guards: $7.9 million
• Small Forwards: $7.5 million
• Power Forwards: $9.2 million
• Centers: $7.7 million
Starters vs. Bench Players
In 2022, starting players earned an average of $14.9 million, nearly four times the $4.2 million average for bench players. The pay gap between starters and bench players has widened significantly, with starters earning 2.5 times more than bench players in 2019 and nearly four times more in 2022.
Salary Distribution
NBA salaries are highly unequal. While the top five players earned over $40 million each in 2021-22, 93 players made less than $2 million. The median salary for that season was $4.35 million, highlighting how a small number of high earners skew the average.
Other Trends
• Age: Players’ points-per-game production peaks at age 28, but salaries peak later, around age 33, reflecting payment for past performance.
• Height: Taller players tend to earn more. For instance, players at 7’1” (e.g., Shaquille O’Neal, Rudy Gobert) have historically earned more than shorter players.
The NBA’s salary landscape continues to evolve, influenced by revenue growth, position-specific value, and market trends. Despite disparities, the league remains one of the most lucrative platforms for athletes worldwide.
