The NBA offseason is in full swing, and the financial landscape of the league is being reshaped by a series of monumental contracts. Teams are locking in their star players with groundbreaking deals, with the Boston Celtics making the most significant headlines.
Boston Celtics to Finalize Historic Deal with Jayson Tatum
The Celtics are reportedly finalizing the largest contract in NBA history with Jayson Tatum. This contract, which is set to commence in the 2025-26 season, spans five years and is worth an eye-watering $314 million. The deal establishes a new benchmark in the league, surpassing previous records in terms of total value. The average annual value (AAV) of Tatum's contract will be approximately $62.8 million.
This staggering figure eclipses the previous record held by Jaylen Brown, who signed a five-year, $285 million supermax deal last season. Brown's contract, set to kick off in the 2024-25 season, will make him the highest-paid player in the league for that year, with an AAV of $57.1 million. Despite this, Brown's tenure as the top earner will be short-lived with Tatum's new deal on the horizon.
Big Contracts Around the League
The Celtics aren't the only team making significant financial commitments. Paul George has inked a four-year, $211.58 million contract with the 76ers, equating to an AAV of $52.3 million. Meanwhile, Joel Embiid commands $53.3 million annually under his current deal, solidifying his status as one of the highest-paid players in the league.
Additionally, the Los Angeles Lakers and the Milwaukee Bucks are preparing for substantial salary hikes for their stars. Anthony Davis and Giannis Antetokounmpo are each set to receive more than $58 million annually through their respective three-year extensions, which also begin in the 2025-26 season.
The contracts of Luka Doncic and Nikola Jokic are also worth noting. Doncic becomes eligible for a supermax extension next summer, potentially adding his name to the list of highest earners. Jokic, on the other hand, signed a five-year, $276 million deal with the Nuggets in 2022, solidifying his commitment to the franchise.
Market Dynamics and Player Salaries
The escalating figures reflect not only the on-court contributions of these players but also their marketability and brand strength off the court. The NBA's booming business, driven by lucrative broadcasting deals, global viewership, and increased merchandise sales, has encouraged teams to invest heavily in their stars.
Players like Bradley Beal, Anthony Edwards, and Tyrese Haliburton have also benefited from this financial upswing. Beal signed a five-year, $251 million deal and was later traded to the Suns. Edwards secured a five-year, $244 million extension with the Wolves following his second All-Star appearance and first All-NBA nod. Haliburton's five-year rookie max extension with the Pacers increased to around $245 million after his All-NBA Third Team selection.
Notable Extensions
Other big names continue to draw high salaries through recent extensions. Devin Booker and Karl-Anthony Towns each signed four-year, $220 million extensions in 2022. Stephen Curry, the face of the Golden State Warriors, clinched a four-year, $215 million deal in August 2021. Joel Embiid and Kawhi Leonard, both top players, continue to command impressive salaries through their respective extensions.
The Business of Basketball
The current offseason is redefining financial records and setting new standards for player contracts. The surge in player salaries underscores the NBA's robust economic health, where investing in top talent is seen as a necessity for maintaining championship contention. This era of monumental contracts not only highlights the players' immense talent but also their significant influence on and off the court.
As the NBA continues to grow in popularity, the financial stakes involved in locking down elite players have never been higher. Teams are navigating a complex balancing act of maintaining competitive rosters while managing enormous payrolls. The league’s financial future looks promising, with the players and their monumental contracts at the forefront of this exciting evolution.