Juwan Howard Signed the First $100 Million Contract in NBA History

When young forward Juwan Howard put pen to paper on a jaw-dropping $105 million deal with the Washington Bullets in 1996, he smashed basketball salary records and ushered in a new era for NBA paychecks overnight.

After emerging as an All-Star for the Bullets, the 23-year old Howard wielded unexpected leverage at the bargaining table when he reached free agency. With TV revenues fueling rapid NBA growth, salaries were rising to unprecedented levels.

Seemingly overnight, Howard leapt from solid starter to $100 million man after signing the landmark 7-year record-shattering contract. Let‘s analyze how his out-of-left-field 9-figure payday completely transformed the financial landscape of the league.

Steady Growth Before Salaries Took Off

For decades prior to the 1990s NBA boom, player salaries had increased at a modest pace. In the 70s, stars like Kareem Abdul-Jabbar earned $200,000 per year. In 1986, Michael Jordan earned $630,000 in his rookie season after being drafted 3rd overall.

While earnings grew, they remained far from modern day standards up until the league signed a blockbuster TV deal in 1993 negotiated by commissioner David Stern.

Surging Revenues Bring 100 Million Deals

The four-year, $750 million TV rights contract in 1993 marked a turning point for player salaries. As more money flooded the NBA, the salary cap suddenly lifted and contracts soared for stars.

In 1995, Pat Riley signed Alonzo Mourning to the Hornets for a new record of $11 million per year. The record didn‘t last long. Next summer, Michael Jordan raised the bar again with $30 million annually from the Bulls.

But it was the 7-year, $105 million shocker from Howard and Washington that smashed records once and for all…

Juwan Howard Cashes In

After being drafted 5th overall in 1994, Howard carved out a vital role during his early Washington years. The versatile big man started 81 games in the 95-96 season while averaging 22 points and 8 rebounds. He also made his first All-Star team and led the Bullets back to the playoffs.

Entering free agency in Summer 1996, the gifted 23-year old Howard was perfectly positioned for a blockbuster payday thanks to an inflated market. Despite just two seasons as a starter, his combination of youth, potential and role as Washington‘s franchise face swayed Bullets management into making their unprecedented offer.

While the contract shattered all existing records for guaranteed money and annual value, skepticism arose from all corners of the NBA world on the deal elevating an unproven forward to such financial heights.

"We were all surprised, it was monumental money at the time that took guts to offer a young player. But Juwan became a symbol of this new era where suddenly 9-figures was possible" – Jerry West, Lakers GM

Regardless, a new age dawned across the NBA where $100 million man suddenly became reality.

The Trickle Down Effect on NBA Salaries

Within a year of Howard breaking the financial mold for NBA stars, several other deals would follow in his $100 million footsteps:

As predicted by many, Howard‘s contract set off a rapid escalation in salaries across the league during the late 90s and 2000s. Both Michael Jordan and Magic Johnson later signed $100 million plus deals on the back of the NBA‘s surging popularity and revenues under commissioner David Stern.

In present day, nine-figure contracts are now commonplace for superstars like Damian Lillard, Bradley Beal and Luka Doncic thanks to maximum salaries and a rising salary cap.

But it was Howard back in 1996 who pioneered the $100 million contract – a reward that sparked shock and awe across American sports at the time. His deal transformed salary expectations overnight and paved the way for modern-day NBA players to become basketball‘s highest earners by far.