What's the 100 percent rule?
The difference between player salary and bonuses in each of the first two years of a contract cannot exceed the amount of the lower of the two league years. In all subsequent years, increases in player salary and bonuses from one year to another cannot exceed the amount of the lower of the first two years of the contract and decreases from one year to another may not exceed 50 percent of the lower of the first two years of the contract.
It is important to note this does not mean decrease in salary is limited to 50 percent of the prior year's salary. It's 50 percent of the lower of the first two years of the contract.
EXAMPLES (min <> max listed for Year 3)
Example 1 Year 1: $2,000,000 Year 2: $4,000,000 Year 3: $3,000,000 <> $6,000,000 Example 2 Year 1: $1,000,000 Year 2: $2,000,000 Year 3: $1,500,000 <> $3,000,000 Example 3 Year 1: $1,000,000 Year 2: $1,000,000 Year 3: $500,000 <> $2,000,000 Example 4 Year 1: $750,000 Year 2: $1,100,000 Year 3: $725,000 <> $1,850,000 Example 5 Year 1: $2,500,000 Year 2: $1,500,000 Year 3: $750,000 <> $3,000,000
CBA reference: 50.7 (P. 219)