The NBA offseason is in full swing, signaling an era of unprecedented financial deals that are reshaping the league's landscape. Teams are sparing no expense in locking down their stars with extraordinarily lucrative contracts. At the forefront of this trend is the Boston Celtics, who are reportedly on the verge of finalizing the largest contract in NBA history with Jayson Tatum.
Historic Contract for Jayson Tatum
The Celtics are set to sign Tatum to a staggering five-year, $314 million supermax contract. This deal, expected to commence in the 2025-26 season, is the richest in NBA history in terms of total value, with an average annual value (AAV) of approximately $62.8 million. This monumental contract eclipses the previous record held by Tatum’s teammate, Jaylen Brown.
Last season, Brown inked a five-year, $285 million supermax deal, which will start in the 2024-25 season. With an AAV of $57.1 million, Brown will be the highest-paid player in the league for that year. However, his record-setting deal will soon be surpassed by Tatum’s even more lucrative package.
Other Notable Deals
As teams vie for competitive advantage, other star players are also securing significant paydays. Paul George has joined the Philadelphia 76ers with a four-year, $211.58 million contract, boasting an AAV of $52.3 million. Within the same team, Joel Embiid continues to command a high salary, earning $53.3 million annually under his current agreement.
The Los Angeles Lakers and Milwaukee Bucks are not far behind in the financial arms race. Anthony Davis and Giannis Antetokounmpo have both secured three-year extensions that will pay them more than $58 million annually, starting in the 2025-26 season.
Nikola Jokic, the reigning MVP, signed a five-year, $276 million deal with the Denver Nuggets back in 2022. Meanwhile, Bradley Beal's five-year, $251 million contract, initially signed with the Washington Wizards, led to a subsequent trade to the Phoenix Suns. Young talents like Anthony Edwards are also cashing in. Edwards signed a five-year, $244 million extension with the Minnesota Timberwolves, an achievement that followed his second All-Star appearance and first All-NBA nod.
Rising Stars and Anticipated Extensions
Young stars are quickly establishing the standard for rookie max extensions. Tyrese Haliburton secured a five-year rookie max extension with the Indiana Pacers, which escalated to around $245 million after his All-NBA Third Team selection.
High-Value Veterans
Veteran players continue to secure substantial deals, reflecting their ongoing value in a competitive league. Devin Booker and Karl-Anthony Towns each locked in four-year, $220 million extensions in 2022. Stephen Curry, the Golden State Warriors’ sharpshooter, finalized a four-year, $215 million deal in August 2021.
Consistently high salaries for players like Joel Embiid and Kawhi Leonard underscore the significant investments teams are making to maintain their competitiveness. This escalation in player salaries speaks volumes about the booming business of the NBA, driven by lucrative broadcasting deals, expanding global viewership, and strong merchandise sales.
The Economics of Competitive Balance
These record-breaking contracts reflect not only the players' on-court performances but also their marketability and brand strength off the court. Teams find themselves balancing championship contention with managing enormous payrolls, a feat becoming more intricate with each blockbuster deal signed.
The current NBA offseason is pushing financial boundaries and setting new standards for player contracts. As Jayson Tatum prepares to embark on his historic deal with the Celtics, the landscape of the NBA continues to evolve, driven by the undeniable growth in the business of basketball.