What is a trade kicker in an NBA contract?

With a recent contract extension that included one, what is a trade kicker in an NBA contract?

On Monday, the Boston Celtics and guard Marcus Smart agreed to terms on a four-year, $77.1 million contract extension. According to The Athletic’s Shams Charania, the deal is fully guaranteed through 2025-26 and includes a trade kicker.

A ” trade kicker”? What is that, exactly? Inquiring minds may want to know.

What is a trade kicker in an NBA contract?

Let’s go to Basketball Reference’s contract terminology glossary for an official explanation.

"Trade Kicker  The percentage of a player’s salary that is awarded as a bonus in the event of a trade."

The exact percentage of Smart’s trade kicker is unknown right now, but there are specific examples out there. According to Spotrac Stephen Curry’s current contract (entering its final year) has a 15 percent trade kicker. Of particular interest based on rampant trade rumors that aren’t going away, Ben Simmons also has a 15 percent trade kicker in his contract.

In the current cases of Curry and Simmons, a trade kicker can mean different things.

Curry is not going to be traded by the Warriors unless he asked to be, and in that case they’d surely accommodate him. But his fresh max deal secured the idea he’ll play his entire career for Golden State.

Simmons has four years left on a five-year deal, with upcoming salaries of $33 million, $35.4 million, $37.8 million and $40.3 million. His trade kicker doesn’t appear to be a serious impediment to a deal, leaving aside the 76ers’ asking price, their overall willingness to move him or his own desire to play somewhere else.

Plainly and simply, a player with a trade kicker gets more money if he’s dealt to a new team. A move involving a player with a trade kicker stands to impact the return his current team gets in a trade too. For a team to give someone a trade kicker, it’s a gesture to show that player they plan to keep him for the duration of the deal.

A trade kicker functions like a no-trade clause on some level. It’s a no-lose proposition for the player, and the team creates some financial consequences if they do trade him. But beyond the percentage the bonus is, all trade kickers are not necessarily created equal.