What typically happens if a team trades a player with a rookie scale contract?

When a team trades a player who is on a rookie scale contract, the contract terms and benefits transfer to the new team. This is because rookie scale contracts come with predetermined salaries based on the player's draft position, which are collectively bargained and structured in a way that allows these contracts to remain binding even after a trade. Consequently, the acquiring team assumes all obligations associated with the contract, including salary cap implications and duration.

In contrast, other options do not accurately represent the procedure followed during a trade involving rookie scale contracts. The contract does not become void nor is it renegotiated simply because a trade has occurred. Additionally, while the rookie scale is tied to the specific player's draft position and salary is governed by the rules in the CBA (Collective Bargaining Agreement), the terms do remain effectively unchanged in terms of salary levels when transferred to a new team.