re: Why doesn't the NBA end guaranteed contracts?

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You could make the argument that smaller market teams have to pay full price or higher to entice FAs to sign with them. A player might say I will only take the max to play for small market team X, but I will play for less if it's offered by LA/NY/etc. So there could be a situation where a small market would have to overpay for a guy that would accept a more "fair market" contract on a bigger market team.

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Problem is this would only effect the bottom of the food chain the Lakers/Celtics of the world are still going to be offering the AD level players fully guaranteed deals so you have the same “issue”