2nd round draft pick compensation
Section 4.Effect of Contracts with Other Professional Teams.
If a player is drafted by a Team in either an Initial or Subsequent Draft
and, during a period in which he may negotiate and sign a Player Contract
with only the Team that drafted him, either (i) is a party to a previously
existing player contract with a professional basketball team not in the NBA
that covers all or any part of the NBA Season immediately following said
Initial or Subsequent Draft, or (ii) signs such a player contract, then the
following rules will apply:
(a) Subject to subsection (b) below, the Team that drafts the player shall
retain the exclusive NBA rights to negotiate with and sign him for the
period ending one year from the earlier of the following two dates: (i) the
date the player notifies such Team that he is available to sign a Player
Contract with such Team immediately, provided that such notice will not be
effective until the player is under no contractual or other legal impediment
to sign with such Team; or (ii) the date of the NBA Draft occurring in the
twelve-month period from September 1 to August 30 in which the player
notifies such Team of his availability and intention to play in the NBA
during the Season immediately following said twelve-month period, provided
that such notice will not be effective until the player is under no
contractual or other legal impediment to play with such Team for said
Season.
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