The NBA offseason is unfolding with unprecedented moves, as teams across the league lock in their star players with historically lucrative deals. Leading the charge, the Boston Celtics are reportedly close to finalizing the largest contract in NBA history with Jayson Tatum. This momentous deal, a five-year, $314 million supermax contract, is slated to commence in the 2025-26 season and will set a new benchmark in the league both in terms of total value and average annual value (AAV), estimated at approximately $62.8 million.
An Era of Record-Breaking Contracts
Tatum's contract will not only secure his future with the Celtics but also surpasses the previous record held by Jaylen Brown, who inked a five-year, $285 million supermax deal last season. Brown's contract will take effect in the 2024-25 season, making him the highest-paid player in the league for that year with an AAV of $57.1 million. This surge in player salaries reflects the NBA's booming economic landscape, driven by lucrative broadcasting deals, increasing global viewership, and robust merchandise sales.
Other Major Deals
Another significant contract in the mix is Paul George's four-year, $211.58 million agreement with the 76ers, boasting an AAV of $52.3 million. Meanwhile, Joel Embiid continues to command high earnings, pulling in $53.3 million annually under his current deal. The market trend indicates no slowdown in mega deals, as players like Anthony Davis and Giannis Antetokounmpo are lined up for significant pay raises through their respective three-year extensions. Each extension will bring in more than $58 million annually and will commence in the 2025-26 season.
These hefty contracts highlight the emphasis on locking in talent early. Luka Doncic is set to become eligible for a supermax extension next summer, putting him on the path to join this elite group of top earners. Nikola Jokic, who signed a five-year, $276 million deal with the Nuggets in 2022, and Bradley Beal, with his five-year, $251 million contract followed by a trade to the Suns, exemplify this trend.
Young Stars on the Rise
The focus on retaining young talent is further evidenced by contracts like the five-year, $244 million extension signed by Anthony Edwards with the Wolves. Edwards' new deal, following his second All-Star appearance and first All-NBA nod, underscores his rising value. Tyrese Haliburton's five-year rookie max extension with the Pacers also swelled to around $245 million after his selection to the All-NBA Third Team. This new wave of contracts is emblematic of the league's investment in its emerging stars.
Other notable extensions include Devin Booker and Karl-Anthony Towns, each securing four-year, $220 million deals in 2022. Stephen Curry, on the other hand, nailed down a four-year, $215 million deal in August 2021, reinforcing his status as one of the league's highest earners. As these massive deals roll in, it's clear that teams are willing to commit financially to ensure their championship contention while managing substantial payrolls.
Balancing Act for Teams
The surge in player salaries presents both a challenge and an opportunity for NBA teams. While these contracts are a testament to the players' on-court performances, marketability, and branding potential, they also pose a significant financial balancing act for franchises. Managing these enormous payrolls while maintaining competitive rosters will be a critical task for team executives in the coming seasons.
This offseason is setting new precedents for financial records in the NBA. Jayson Tatum's looming contract with the Boston Celtics marks a new era in player deals, cementing his place in history as he prepares to embark on this groundbreaking agreement. The trend reflects the league’s strength and the growing importance of securing top-tier talent to drive success both on and off the court.