How many Designated Rookies can teams have who receive a contract extension?

Teams are allowed to have a maximum of two Designated Rookies who can receive contract extensions. The concept of Designated Rookies was implemented to enable teams to retain their top young talent while providing flexibility in terms of salary cap management. By allowing two Designated Rookies, the league encourages franchises to invest in promising players who show potential to be key contributors.

Designated Rookies are players who meet specific criteria based on their years of service and whether they have achieved certain performance benchmarks, such as being named to an All-Star team or winning the NBA's Most Improved Player award. This designation provides significant financial incentives for both the player and the team, reflecting the player's expected future contributions and the team's strategy in building a competitive roster.

This rule is especially valuable in maintaining competitive balance within the league, as it allows teams to reward talented young players without fully impacting their salary cap, thus enabling them to assemble a well-rounded team capable of competing for championships.