It’s tough to find many problems with Jason Terry’s contract if he truly is just making the veteran minimum salary. That comes out to something like $1.55 million this season, which is certainly an affordable deal for a skilled shooter and valuable veteran presence.
The contract information hasn’t been quite released yet–teams never disclose these things, and The Vertical hasn’t updated their team salary page for the Bucks yet–but it’s a pretty safe bet to assume that’s all the Jet is getting from the Bucks.
Interestingly enough, Milwaukee will actually be reimbursed for the contract, as long as it’s for just this season. According to Larry Coon’s CBA FAQ, the NBA works to ensure teams won’t avoid signing older (and thus more expensive) players by covering some of their contract.
"When a player has been in the NBA for three or more seasons, and is playing under a one-year, 10-day or Rest-of-Season contract at the minimum salary, the league reimburses the team for part of his salary — any amount above the minimum salary level for a two-year veteran. For example, in 2011-12 the minimum salary for a two-year veteran was $854,389, so for a ten-year veteran, with a minimum salary of $1,352,181, the league would reimburse the team $497,792. Only the two-year minimum salary is included in the team salary, not the player’s full salary. They do this so teams won’t shy away from signing older veterans simply because they are more expensive than younger veterans."
That means that Milwaukee will get a check cut by the NBA for around $571,228 if they indeed sign Jet to a one-year deal for veteran minimum. The deal will still count at its full size for salary cap purposes, but the team doesn’t actually have to pay it all, which makes it an even better value.