New contracts

• 2005 CBA: Six years with 10.5 percent raises for Bird free agents; five years with 8 percent raises for other players. Maximum salaries are approximately 25, 30 or 35 percent of the salary cap, depending on the player's years of service.

• 2011 CBA: Five years with 7.5 percent raises for Bird free agents; four years with 4.5 percent raises for other players (including all sign-and-trade transactions). The maximum salaries are the same as the 2005 CBA, except players coming off their rookie scale contracts qualify for the 30 percent maximum if they meet certain criteria. Minimum and rookie scale salaries are frozen near their 2010-11 levels until revenues rise enough that the reduction is proportional to the 12 percent reduction in the overall system.

• Who benefits? These changes provide the league with more cost control. The exception is the higher maximum salary for fifth-year players who meet certain league honors (MVP, an all-NBA team member twice, or an All-Star twice), which lets young superstars (think Derrick Rose) cash in with a bigger contract sooner.

The higher maximum salary for fifth-year players can also benefit teams. In 2006 LeBron James, Dwyane Wade and Chris Bosh all signed shorter extensions (which allowed them to become free agents in three years) rather than signing on for the maximum five years. The three players timed their free agency to follow their seventh season in the league, when they became eligible for the 30 percent maximum. Allowing franchise players such as these to sign for the higher maximum sooner reduces the temptation for these players to sign shorter contracts, delaying their eventual free agency.

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Contract extensions

• 2005 CBA: Players coming off their rookie scale contracts can extend for five additional seasons. All other veterans can extend for five total seasons, which includes the seasons remaining on their current contracts.

• 2011 CBA: Players coming off their rookie scale contracts can extend for four additional seasons, although the team can designate one player who is eligible for five seasons at the maximum salary. A team can have only one designated player on its roster at any time. All other veterans can extend for four total seasons, which includes the seasons remaining on their current contract. The extension in an extend-and-trade contract is limited to three total seasons, which includes the seasons remaining on the current contract.

• Who benefits? The teams benefit here, just as they do with shorter free-agent contracts -- teams' future salary commitments are reduced. In addition, limiting extend-and-trade contracts to three seasons (including the seasons remaining on the player's current contract) helps reduce situations like the one the Nuggets were in last season with Carmelo Anthony.

Source: http://espn.go.com/nba/story/_/page/CBA-111128/how-new-nba-deal-compares-last-one

I figured it was important to keep this in mind when thinking reading into why certain guys like Howard, Paul, and Williams are not signing extensions. Makes little sense too when you can opt out and do a sign and trade in the summer.