Arriving at the Kings as part of a triangle trade with the Bulls and Spurs, DeMar DeRozan signed a three-year, $74 million contract. This week, we learned that only the first two seasons were guaranteed, and that the franchise has the equivalent of a “team option” to guarantee his third season. If he is cut before January 2027, DeRozan is still guaranteed to leave with $10 million. Only then will the remainder of his contract be fully guaranteed.
According to NBC Sportsthe Kings have compensated for this “team option” with numerous bonuses. Thus, the former Bulls guard will receive a bonus of one million dollars if he is selected to the All-Star Game. Each selection will also increase the guaranteed salary portion of his 3rd season. If he is selected once in the two years, he will receive 12 million dollars. If he is selected twice, it will be 14 million dollars.
Additionally, if the Kings reach the Finals in 2025 or 2026 and DeRozan plays at least 60 regular season games, his third year of contract will then become fully guaranteed.
