Zion’s deal is not guaranteed for the last three years

When the New Orleans Pelicans extended Zion Williamson’s contract in July 2022, it was a moment of jubilation for the franchise. New Orleans had managed to lock up Williamson for another five years for $197 million, which would keep the star who was selected No. 1 overall in 2019 in the city.

The deal itself was significant, with Williamson seen not only as the key to turning the Pelicans into a contender, but also as an example of a young All-Star willing to sign a long-term deal with a small-market team. It wasn’t without risk, though: Williamson had missed significant portions of his first three years in the NBA, including the entire 2021-2022 season. As a result, the team negotiated major fences related to Williamson’s health and fitness, in case he had trouble staying on the field.

According to the contract, which was reviewed by The Athleticsare no longer guaranteed for the final three years of the deal after Williamson was only able to play in 29 games last season. By missing more than 22 games last season, Williamson activated a clause that changed the salary he is owed for the 2025-26, 2026-27 and 2027-28 seasons from guaranteed to non-guaranteed. That means the Pelicans have the contractual power to part with Williamson after the 2024-2025 season, without financial consequences — although rival team leaders believe that would only happen under extreme circumstances.. And if Williamson misses significant time this season, that could reduce his guaranteed salary for 2024-2025.

The contract also includes ways for Williamson to recoup the guarantees by playing enough games and passing specific weigh-in checkpoints.

When contacted by The Athletics, the Pelicans declined several times to comment, answer questions about the contract or make Williamson available to speak. Williamson’s agent, Austin Brown, did not return messages seeking comment.

Williamson, 23, is in the first year of his five-year extension, and his health and availability have quickly become major issues again. He has remained on the field so far, appearing in 23 of 28 games while averaging 22 points in 30.5 minutes per game, but his fitness has been seriously questioned. He looked lethargic in an ugly season-one tournament loss to the Lakersfollowing TNT’s Charles Barkley and Shaquille O’Neal to pile criticism on himin which he said he was out of shape. The New Orleans Times Picayune reported that the team has long questioned Williamson’s work ethic.

The Pelicans had guarded against such uncertainty when reaching the extension last year. The complex deal, key details of which were confirmed by six league sources on condition of anonymity, included unusual measures taken by the Pelicans to tie guaranteed salary directly to games played.

Aside from the shift for the final three years of the deal, Williamson risks losing even more guarantees if he does not reach certain points during regular checks of his weight and body fat. According to the contract, the sum of Williamson’s weight in pounds and his body fat percentage must be less than 295. Last season he weighed 285 kilos, which means his body fat should not exceed 10 percent.

The Pelicans have also protected themselves in case Williamson has any more significant issues with the fifth metatarsal bone in his right foot. If he suffers a fracture or stress injury to that bone or healed callus, or has a so-called “hardware failure” related to the previous injury there, then half of his 2024-2025 base salary is no longer guaranteed. if the team released him.

While the complexity of Williamson’s contract is highly unusual, the NBA has seen contracts that provide teams with injury protection and playing time before. Joel Embiid’s rookie extension with the Philadelphia 76ers was a max deal that also provided the franchise with financial coverage if he were to get hurt again after Embiid missed his first two NBA seasons with foot injuries. Jonathan Isaac signed a four-year extension with the Magic that runs through the 2024-25 season, but is only partially guaranteed for this season and not guaranteed for next season after dealing with a slew of injuries during his first three years got to make.

Williamson’s deal is much more layered in comparison.

Williamson has said he worked on his body this offseason after developing a plan with the Pelicans. He had realized, he said, that he had to change his routine. Williamson said this summer on a podcast co-hosted by former NBA star Gilbert Arenas that he focused on flexibility and band work, as well as ways to stay on the court longer. LeBron James, he said, serves as a blueprint; James is known to spend large amounts of money on his health and fitness every year and is still dominant at 38.

Before this season started, Pelicans head of basketball operations David Griffin, who declined to be interviewed for this story, said Williamson had finally made a whole-hearted commitment to his health at the franchise.

“This was the first summer where we saw Zion really take his profession that seriously and invest it off the field in a way that I think makes sense,” Griffin said in October. He added: “He found a level of commitment that was important.”

Four executives from other NBA teams, who spoke on condition of anonymity so they could discuss Williamson’s arrangement, said it was unlikely the Pelicans would waive him unless the situation deteriorated significantly. However, the contract terms give the team flexibility and a safety net, and could make it easier to trade Williamson, as potential partners would have breakout options that could reduce the risk of his salary being added to their ledger.

There are also opportunities for Williamson to have some, or even all, of his salary guaranteed again. Twenty percent of his salary for the 2025-2026 season is guaranteed if he meets all six weighting points during the 2024-2025 season, another 40 percent if he plays at least 41 games in 2024-2025 and another 40 percent of his salary for the 2025-2026 season. 20 percent if he plays in at least 51 games. The last 20 percent is guaranteed again if he plays in at least 61 games. He can also guarantee a portion of his salary for the 2026-27 and 2027-28 seasons again by achieving the same milestones in the previous seasons.

There are also a number of acquisition dates in the deal that tie the team and the player together.

Williamson’s contract for the 2024-2025 season is fully guaranteed as long as the Pelicans do not terminate him on or before January 7 of that season. His 2025-2026 salary is 100 percent protected as long as it is not waived on or before July 15, 2025. His compensation for 2026-27 is 100 percent protected as long as it is not waived on or before July 15, 2026. the salary is 100 percent guaranteed as long as Williamson does not waive on or before July 15, 2027.

For the Pelicans, the contract terms protect against the worst possibilities. But both sides would clearly prefer to see Williamson play out his contract and dominate – and be paid handsomely. Williamson has also invested.

“Whether people believe it or not, when I’m on the sidelines, man, it hurts me more than anything,” Williamson said of missing playing time, speaking on the podcast co-hosted by Arenas. “I just want to hoop.”

Required reading

(Photo: Christian Petersen/Getty Images)