The NBA offseason is in full swing, and the landscape of player contracts is undergoing significant changes. Teams are solidifying their rosters by locking in their stars with lucrative deals, with one notable example being the Boston Celtics. The Celtics are reportedly finalizing the largest contract in NBA history with Jayson Tatum, a deal that is set to redefine financial standards within the league.
Breaking Records
The Boston Celtics are on the verge of signing Jayson Tatum to a five-year, $314 million supermax contract. Scheduled to commence in the 2025-26 season, this contract is the richest in the league's history in terms of total value. The average annual value (AAV) of Tatum’s contract is approximately $62.8 million, surpassing the previous record held by Jaylen Brown.
Brown signed a five-year, $285 million supermax deal last season, which will kick off in the 2024-25 season. With an AAV of $57.1 million, Brown was set to become the highest-paid player in the league for that year until Tatum’s historic deal eclipsed it.
Shifting Financial Dynamics
This offseason has been a whirlwind for high-value contracts across the NBA. Paul George has inked a four-year, $211.58 million contract with the 76ers, translating to an AAV of $52.3 million. Joel Embiid continues to command a high salary, earning $53.3 million annually under his current deal, while also benefiting from recent extensions.
Other notable players who are set to receive significant pay raises include Anthony Davis and Giannis Antetokounmpo. Their three-year extensions, starting in the 2025-26 season, will each bring in more than $58 million annually. Meanwhile, young talents like Luka Doncic and Anthony Edwards are solidifying their financial futures. Doncic is poised to become eligible for a supermax extension next summer, while Edwards has already signed a five-year, $244 million extension with the Wolves, following his second All-Star appearance and first All-NBA nod.
Tyrese Haliburton is another player who is seeing a substantial financial boost. After being named to the All-NBA Third Team, his five-year rookie max extension with the Pacers increased to around $245 million. Meanwhile, Nikola Jokic, who signed a five-year, $276 million deal with the Nuggets in 2022, and Bradley Beal, who inked a five-year, $251 million deal before being traded to the Suns, continue to rank highly on the list of top-earning players.
The Role of Extensions
Extensions have also played a significant role in this offseason’s financial landscape. Devin Booker and Karl-Anthony Towns both signed four-year, $220 million extensions in 2022, and Stephen Curry secured a four-year, $215 million deal in August 2021. These players, along with stars like Joel Embiid and Kawhi Leonard, continue to draw high salaries due to recent extensions.
Booming Business
The escalation in player salaries underscores the NBA's booming business. With broadcasting deals, global viewership, and merchandise sales on the rise, teams are more willing to invest heavily in their stars. These contracts reflect the players' on-court contributions, marketability, and brand strength off the court.
The current NBA offseason is redefining financial records and setting new standards for player contracts. As teams continue to navigate the complexities of maintaining championship contention while managing enormous payrolls, the league's financial dynamics will undoubtedly see further evolution.
Jayson Tatum is preparing to embark on this historic deal with the Celtics, setting a new precedent in the NBA’s ever-expanding financial landscape.