The NBA offseason is in full swing, and as teams maneuver to secure their marquee stars with highly lucrative contracts, some deals are already making league history. The Boston Celtics are leading the charge, reportedly finalizing the largest contract to date with their standout player, Jayson Tatum.
The Celtics are planning to sign Tatum to a five-year, $314 million supermax contract. This colossal deal will commence in the 2025-26 season, setting a new benchmark for financial agreements in the NBA in terms of total value. With an average annual value (AAV) of approximately $62.8 million, Tatum's contract eclipses all previous records.
Surpassing Previous Records
This historic contract edges out the previous record set by Jaylen Brown, another Celtics star, who inked a five-year, $285 million supermax deal last season. Brown's contract, which will kick in during the 2024-25 season, positions him as the highest-paid player in the league for that year, boasting an AAV of $57.1 million.
While Tatum and Brown have headline-grabbing contracts, other NBA stars have also secured significant deals. Paul George has agreed to a four-year, $211.58 million contract with the Philadelphia 76ers, yielding an AAV of $52.3 million. Joel Embiid continues to command high earnings, with his current deal granting him $53.3 million annually.
Upcoming Pay Raises
Two other prominent figures in the league, Anthony Davis and Giannis Antetokounmpo, are also poised for substantial pay raises. Their respective three-year extensions, beginning in the 2025-26 season, will each bring in over $58 million annually. This escalation in player salaries underscores the NBA's roaring business environment, with broadcasting deals, global viewership, and merchandise sales all on an upward trajectory.
Looking ahead to next summer, Luka Doncic is set to become eligible for a supermax extension, potentially adding his name to the list of the league's highest earners. The trend of record-breaking contracts is unmistakable, reflecting both the players' on-court contributions and their marketability off the court.
Notable Contracts in Recent Years
Other notable contracts in recent years have kept the financial spotlight on the league. Nikola Jokic signed a five-year, $276 million deal with the Denver Nuggets in 2022, and Bradley Beal secured a five-year, $251 million contract before being traded to the Phoenix Suns. Anthony Edwards’ five-year, $244 million extension with the Minnesota Timberwolves followed his second All-Star appearance and first All-NBA nod.
Furthermore, Tyrese Haliburton signed a five-year rookie max extension with the Indiana Pacers, which increased to around $245 million after his All-NBA Third Team selection. In 2022, both Devin Booker and Karl-Anthony Towns agreed to four-year extensions worth $220 million each.
Stephen Curry remains one of the highest-paid players, having secured a four-year, $215 million deal in August 2021. Meanwhile, both Joel Embiid and Kawhi Leonard continue to draw high salaries with recent extensions, reaffirming their status as elite players.
Investing in Star Power
The willingness of teams to invest heavily in their stars reflects the players' immense value both on and off the court. These contracts not only reward the athletes for their contributions to their teams’ success but also acknowledge their influence and brand strength in the broader market.
Maintaining championship contention while managing sizeable payrolls becomes a crucial balancing act for teams. However, the escalating salaries indicate a robust financial landscape, driving forward the league's evolution. As the current NBA offseason redefines financial records, it also sets new standards for player contracts.
Jayson Tatum is now poised to embark on his historic deal with the Celtics, a move that will further solidify his legacy in the league. As teams continue to bid for top talent, the trend of monumental contracts shows no sign of slowing down, underscoring basketball's immense popularity and the NBA's ever-growing capital.