Definition of Designated Veteran Player Extension

What does the term "designated veteran player extension" mean as it applies to the world of the NBA? What is the definition of the "designated veteran player extension"?

The "designated veteran player extension", or DVPE, is part of the NBA's Collective Bargaining Agreement that gives smaller market teams a much better chance of keeping their best players.

The definition and meaning of the term Designated Veteran Player Extension, when it comes to basketball and the NBA.

The DVPE allows teams to offer more money to the best players that were acquired via the draft, trade or assignment via amnesty waiver.

In order to qualify as a designated veteran player, a player must have:

1. 7 or 8 years of service in the league
2. Never changed teams except via trade or assignment via amnesty waiver

In addition, they must have distinguished themselves as one of the top players in the league via one of three ways:

Been named to the All-NBA first, second or third team in immediately preceding season or in two of last three seasons
Defensive Player of the Year
NBA MVP in one of last three seasons

Designated veteran players who fit the preceding criteria can receive extensions for four years if they have 2 years left on their existing deals, and five years if they have one year left on their existing deals.

Designated veteran players can receive up to 35% of the team's salary cap. So, if a player signs a DVPE, they can receive up to 35% of the salary cap calculated from the first year that the extension is in effect.

Designated veteran players are "Bird rights" players, so these players are eligible to receive annual raises of 8%, per the terms of the CBA.

So, a player who signs a DVPE that kicks in during the 2019-20 season is eligible to receive 35% of the salary cap for the 2019-20 season (35% of salary cap for 2019-20 season is estimated to be $37,800,000) plus 8% raises per year after that.


The DVPE was designed to prevent the formation of "super teams" that would strip certain markets of their best players. As Kevin Durant showed, if you want to move to a great team now, you are going to have to sacrifice some money to do so.

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