What is an unrestricted free agent? What’s the difference between a restricted free agent?

The NBA season might be over, but teams around the league are already eyeing next season as they try to beef up their rosters for the 2024/25 campaign. Just a day after the opening of the free agent market there have already been some massive moves made, and there are plenty more to come.

Restricted vs. Unrestricted

Technically, deals like the ones that have already been agreed upon are between the Philadelphia 76ers and Paul George are yet to be finalized. We are currently in the “Moratorium” stage in which teams and players can negotiate terms of the deal but no deal can be signed until after July 6th at 12:01 pm ET.

There are a few different types free agents that teams can talk to over the next week. The first is an unrestricted free agent. This means that a player’s contract with their former team has come to an end and they are free to negotiate with any team they choose without their former team being involved.

A restricted free agent has a few more limitations. A restricted free agent is free to explore the market and listen to any offers from around the league. If an offer comes from a team other than that in which the player had a contract with the previous season, the original team has a chance to match the offer. This gives the team that had the player under contract the “right of first refusal.”

Team vs. Player option

Team and player options also come into play around this time of year. If a team has an option on a player that means that they have the right to sign a player for another year once the original contract comes to an end. The team option is agreed upon before the contract is signed and if the player performs well and the team wants to keep him around, they can exercise their option and the player stays with said team. These are generally deals with mid to lower level players that teams don’t know if they will want to have aboard, so they get themselves an out should the situation go south.

A player option puts the decision in the hands of the player. Usually only top players have this power, and ability to choose if they want to stick around, or explore the market. A team and a player can agree to a contract and tie a player option to the end of it. LeBron James currently has that and decided to turn down his player option. That’s not a typical case in the NBA, because LeBron is reportedly turning down the option for less money as he tries to build a team capable of winning a championship around him. If a player turns down the player option, they immediately become an unrestricted free agent.

Some deals have already been agreed upon, and there is certain to be plenty more free agent news coming over the next few days. LeBron James, Klay Thompson and DeMar DeRozan headline the list of names that are expected to sign new deals within the week.