The NBA offseason is buzzing with extraordinary financial movements, with several high-profile players securing landmark contracts that reflect the league's booming business. Front and center of these financial fireworks is the Boston Celtics' impending deal with Jayson Tatum, which is set to become the largest contract in NBA history.
Largest Contract in NBA History
Jayson Tatum's deal with the Boston Celtics is poised to make waves across the league. The Celtics are planning to lock in their star forward with a five-year, $314 million supermax contract, commencing in the 2025-26 season. This contract, the richest in the NBA in terms of total value, boasts an average annual value (AAV) of approximately $62.8 million.
This eye-popping deal surpasses the previous record held by Tatum's teammate, Jaylen Brown. Last season, Brown inked a five-year, $285 million supermax contract, which will make him the highest-paid player in the NBA for the 2024-25 season with an AAV of $57.1 million. These staggering figures highlight the Celtics' commitment to maintaining a competitive edge in the league by securing their key players with lucrative, long-term contracts.
The Impact of Supermax Contracts
The concept of the supermax contract has revolutionized the financial landscape of the NBA. Paul George is another notable player who recently benefited from this trend, signing a four-year, $211.58 million contract with the Philadelphia 76ers, translating to an AAV of $52.3 million. Similarly, Joel Embiid commands a significant annual salary of $53.3 million under his current deal with the 76ers.
Other NBA stars are also set to receive substantial pay raises in the near future. Anthony Davis and Giannis Antetokounmpo have both secured three-year extensions that will pay them over $58 million annually starting in the 2025-26 season. This escalation in salaries underscores the financial health and growth of the NBA, driven by lucrative broadcasting deals, increasing global viewership, and robust merchandise sales.
Notably, Luka Doncic is expected to join these ranks next summer when he becomes eligible for a supermax extension. If history is any guide, Doncic’s new deal could set yet another benchmark in the continually escalating valuation of elite NBA talent.
Record-Breaking Deals and Big Names
Over recent years, the NBA has seen a slew of significant contract extensions. In 2022, Nikola Jokic signed a five-year, $276 million deal with the Denver Nuggets, and Bradley Beal inked a five-year, $251 million contract before being traded to the Phoenix Suns. Anthony Edwards followed his second All-Star appearance and first All-NBA nod by signing a five-year, $244 million extension with the Minnesota Timberwolves.
Tyrese Haliburton's growth was recognized by the Indiana Pacers, who offered the young star a five-year rookie max extension. His contract, initially slated lower, ballooned to approximately $245 million after his All-NBA Third Team selection. Meanwhile, both Devin Booker and Karl-Anthony Towns signed four-year, $220 million extensions in 2022. Stephen Curry, the Golden State Warriors’ cornerstone, secured a four-year, $215 million deal back in August 2021.
Balancing Big Paydays with Championship Aspirations
Given these escalating salaries, managing payrolls while striving to maintain championship contention has become a delicate balancing act for NBA teams. Joel Embiid and Kawhi Leonard are prime examples of players who continue to draw immense salaries due to their on-court contributions and marketability.
Teams are increasingly willing to invest heavily in their stars, recognizing the dual benefit of on-court success and off-court brand strength. This willingness is bolstered by the NBA's increasing profitability, driven by strategic deals and global fan engagement. These lavish contracts are not just about rewarding individual excellence; they also reflect the business acumen of franchises that understand the value these stars bring beyond the court.
A New Era of NBA Financial Records
As the offseason continues to unfold, the financial records being set provide a telling narrative of the NBA's robust economic condition. The deal with Jayson Tatum stands out as a historic moment in the league. With an eye on sustained success, the Boston Celtics are showing their unwavering commitment to their star player, hoping to build a dynasty around a player entering the prime of his career.
Jayson Tatum and the Boston Celtics are prepared to embark on this unprecedented journey, which will undoubtedly influence future negotiations and contracts across the NBA. The current offseason has not only redefined financial records but also set new standards for what it means to be an elite player in the modern NBA landscape.