The NBA Offseason Dictionary Series: UFA Vs. RFA

Photo Taken By The Sporting News Illustrations

Another day, another blog for the “The NBA Offseason Dictionary Series”. In this blog, I will be breaking down the difference between an unrestricted free agent (UFA) and a restricted free agent. (RFA)

Unrestricted Free Agent

This term is very cut and dry. An unrestricted free agent is a player who is free to sign with any team, including their previous team, when their contract expires. 

Entering the 2024 offseason, Paul George was a UFA. The Los Angeles Clippers (the team PG13 played for this past season) were the first team trying to negotiate a new contract with PG13. This is not always the case when a player is a UFA, but it often is if the player and franchise are on good terms.

The Clippers initially offered PG13 a three-year contract in the $150 million range. George asked for a no-trade clause, which the Clippers denied. George countered with a four-year offer worth $212 million, which the Clippers also rejected.

Since George was a UFA, he was able to explore the market without any limitations set by the Clippers. On July 1st, 2024, Paul George signed a four-year, $212 million contract to become a member of the Philadelphia 76ers.

Restricted Free Agent

A restricted free agent (RFA) is more complex. On the surface, a restricted free agent is a player who has completed their contract but is subject to certain limitations, allowing their original team to retain some control over their next contract.

To make it easier to understand, I am going to refer to the team that the free agent played on this past season as Team A. The other team trying to sign the free agent will be referred to as Team B.

Team A will start by sending that player a qualifying offer if they want the right of first refusal (defined further down this blog).

Qualifying Offer: A one-year contract offer that a team must extend to a player to make them a restricted free agent. By extending this offer, the team retains the right to match any contract offer the player receives from other teams.

Once the qualifying offer is received, the player is given the option to either accept the offer and remain with Team A for another season, or they can refuse the offer.

If a RFA refuses the qualifying offer, Team A is given the right of first refusal.

Right of First Refusal: Team A’s right to match any offer the restricted free agent signs with another team. The right of first refusal is granted to Team A once the free agent receives an offer from Team B. They are given a specific time period (usually 48 hours) to match the offer presented by Team B.

If Team A matches the offer, the free agent must sign with Team A. If Team A does not match the offer, the free agent signs with Team B.

Instead of extending the qualifying offer, Team A can also try and negotiate an extension with the free agent. However, if Team A does not send a qualifying offer, they no longer have the right of first refusal.

We have yet to see an example in this 2024 offseason where Team A did not match the offer from Team B. However, we have had plenty of examples of RFA’s signing extensions with their current teams.

Tyrese Maxey signed a max extension for 5- years, $204 million to stay with the Philadelphia 76ers. The 76ers and Maxey wanted to get a long-term deal done, so a qualifying offer was unnecessary here.

Similarly, Immanuel Quickley, who was traded to the Toronto Raptors in the middle of last season, signed a five-year, $175 million extension to stay in Toronto. Quickley and the organization wanted to continue growing their relationship.

Bottom Line:

In short, UFAs like Paul George can explore offers from any team, while RFAs like Tyrese Maxey and Immanuel Quickley are constrained by their current team's right of first refusal or can negotiate extensions directly. This process heavily influences team rosters and player contracts each offseason.