The NBA offseason is in full swing, and with it comes a wave of lucrative deals that are reshaping the financial landscape of the league. Teams are not hesitating to lock in their stars for the foreseeable future with eye-popping contracts that reflect the intensifying business of basketball.
Boston Celtics Break Records with Jayson Tatum Deal
The Boston Celtics are reportedly finalizing a groundbreaking contract with their star player, Jayson Tatum. According to sources, the Celtics are planning to sign Tatum to a five-year, $314 million supermax contract, which will commence in the 2025-26 season. This deal marks the largest contract in NBA history in terms of total value, with an average annual value (AAV) of roughly $62.8 million. This contract not only underscores Tatum's significance to the Celtics but also sets new financial benchmarks in the league.
This monumental deal for Tatum surpasses the previous record held by his teammate Jaylen Brown. Brown, who signed a five-year, $285 million supermax deal last season, will see his contract kick off in the 2024-25 season, making him the highest-paid player in the league for that year with an AAV of $57.1 million.
Other Major Contracts Shaping the NBA
While the Celtics are making headlines with Tatum's record-breaking contract, other players and teams are also securing significant deals. Paul George has inked a four-year, $211.58 million contract with the Philadelphia 76ers, giving him an AAV of $52.3 million. Meanwhile, Joel Embiid commands $53.3 million annually under his current deal with the 76ers, continuing to draw a high salary with recent extensions.
The Los Angeles Lakers and Milwaukee Bucks have ensured their stars, Anthony Davis and Giannis Antetokounmpo, respectively, remain with significant pay raises. Their three-year extensions, each starting in the 2025-26 season, will bring in more than $58 million annually. This ensures both franchises retain their key players as they aim for continued championship contention.
Future Contract Extensions on the Horizon
The trend of supermax contracts is likely to continue, with Luka Doncic becoming eligible for a supermax extension next summer. If Doncic's future deal follows the trajectory set by Tatum and Brown, it could further push the boundaries of player salaries.
Nikola Jokic of the Denver Nuggets already secured a five-year, $276 million deal in 2022, a significant investment that highlights his value to the team. Similarly, Bradley Beal's five-year, $251 million deal was momentous, although he was later traded to the Phoenix Suns, showing how player mobility and contract values can influence roster construction across the league.
Young Stars Cashing In
The influx of young talent is also contributing to the escalation of salaries. Anthony Edwards, following his second All-Star appearance and first All-NBA nod, signed a five-year, $244 million extension with the Minnesota Timberwolves. This deal signals the Timberwolves' commitment to building around their burgeoning star.
Tyrese Haliburton is another young player reaping the rewards of stellar performances. He signed a five-year rookie max extension with the Indiana Pacers, which increased to around $245 million after his All-NBA Third Team selection. This kind of financial commitment to young talents is indicative of teams' strategies to secure their future through long-term investments in promising players.
Established Stars Continue to Thrive
The league's established stars are not left behind in this financial boom. Devin Booker and Karl-Anthony Towns each secured four-year, $220 million extensions in 2022, while Stephen Curry locked in a four-year, $215 million deal in August 2021, maintaining his status as one of the highest-paid players in the league.
Joel Embiid and Kawhi Leonard continue to draw high salaries with their recent extensions, reflecting their continued dominance and marketability on and off the court.
Implications of Growing Player Salaries
The escalation in player salaries underscores the NBA's booming business. With broadcasting deals, global viewership, and merchandise sales on the rise, teams are more willing and able to invest heavily in their stars. These contracts not only reflect the players' on-court contributions but also their marketability and brand strength off the court.
Managing these enormous payrolls while maintaining championship contention becomes a balancing act for teams. The current NBA offseason is not just setting new financial records but also redefining the standards for player contracts and team-building strategies in the league.
As Jayson Tatum prepares to embark on his historic deal with the Celtics, it becomes evident that the landscape of the NBA is evolving, driven by the ever-growing value placed on elite talents.