Usman Garuba, who was picked at No. 23 overall in the first round of the 2021 NBA draft, has reportedly reached a contract buyout with his Spanish professional team, Real Madrid. The development allows the 6-foot-8 forward to play with the Houston Rockets in the 2021-22 season.
Tuesday’s news was first reported by Spanish newspaper Marca, which writes that Garuba and Real Madrid agreed to a plan to pay off the €3 million buyout clause in installments. The Rockets can contribute up to $775,000 (€655,000), while the rest comes out of Garuba’s contract.
For first-round NBA draft picks, salaries are generally structured according to a designated scale for each slot. Relative to slot value, teams can sign their first-round players to as little as 80% of that rookie scale amount or up to 120% of that figure. In most cases, the team offers the maximum amount as a sign of good faith. Assuming that holds true with the Rockets, along with standard annual raises, here’s what Garuba will earn over the four years of his first NBA contract (via HoopsRumors):
2021-22: $2.35 million
2022-23: $2.47 million
2023-24: $2.59 million
2024-25: $4.39 million
Total: $11.81 million
As reported by Marca, Usman Garuba has reached an agreement with Real Madrid and he'll be able to pay his buyout in multiple installments, so he'll join the Rockets already this season. Garuba's buyout is worth around €3 million and would have increased in the coming seasons.
— Orazio Francesco Cauchi (@paxer89) August 10, 2021
While Garuba hasn’t signed his contract with the Rockets yet, the financial agreement is implicit, since the 19-year-old wouldn’t otherwise have the money to pay off the €3 million buyout with Real Madrid.
With the buyout complete, Garuba could potentially join Houston at the 2021 Las Vegas Summer League. Entering this week’s proceedings, the team listed Garuba on its official roster (making him eligible to play) and indicated that they were hopeful of eventually having him.
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