The NBA offseason is in full swing, and teams across the league are solidifying their rosters with some eye-popping contracts. Among the most significant moves, the Boston Celtics are reportedly on the verge of finalizing the largest contract in NBA history with their star player, Jayson Tatum. This historic deal is set to reshape the financial landscape of the NBA.
A Record-Breaking Deal
The Celtics are planning to sign Jayson Tatum to a five-year, $314 million supermax contract. This deal, which commences in the 2025-26 season, is the richest in the league's history in terms of total value. With an average annual value (AAV) of roughly $62.8 million, Tatum's contract surpasses the previous record held by his teammate, Jaylen Brown.
Brown, who signed a five-year, $285 million supermax deal last season, will have his contract kick off in the 2024-25 season. His deal will make him the highest-paid player in the league for that year, with an AAV of $57.1 million. This succession of monumental contracts underscores the Celtics' commitment to maintaining a championship-caliber team with top-tier talent.
Comparisons and Context
Jayson Tatum's impending contract isn't the only significant deal making headlines. Paul George has secured a four-year, $211.58 million contract with the Philadelphia 76ers, featuring an AAV of $52.3 million. Meanwhile, Joel Embiid continues to command $53.3 million annually under his current deal, solidifying his place among the league's highest earners.
Elevated player salaries are a trend across the NBA, with several players receiving substantial pay raises through extensions. Anthony Davis and Giannis Antetokounmpo, for instance, are set to receive more than $58 million annually through their three-year extensions, which also commence in the 2025-26 season. These figures place them among the top earners in the league, underscoring their pivotal roles on their respective teams.
Future Financial Milestones
As the NBA continues to thrive, more high-value contracts are on the horizon. Luka Doncic becomes eligible for a supermax extension next summer, potentially setting the stage for another record-breaking deal. The escalation in player salaries mirrors the booming business of the NBA, fueled by lucrative broadcasting deals, global viewership, and robust merchandise sales.
Previous high-value deals include Nikola Jokic’s five-year, $276 million contract with the Denver Nuggets in 2022, Bradley Beal’s five-year, $251 million deal with a subsequent trade to the Phoenix Suns, and Anthony Edwards’ five-year, $244 million extension with the Minnesota Timberwolves. Edwards’ extension came after his second All-Star appearance and first All-NBA nod, indicating his rising star status in the league.
Tyrese Haliburton’s five-year rookie max extension with the Indiana Pacers also saw a significant increase to around $245 million following his All-NBA Third Team selection. Not far behind, Devin Booker and Karl-Anthony Towns both inked four-year, $220 million extensions in 2022, while Stephen Curry secured a four-year, $215 million deal in August 2021. The impressive figures attached to these contracts highlight the players’ on-court contributions, marketability, and brand strength off the court.
Strategic Balancing Act
These lucrative deals reflect a new era in NBA financials, where maintaining championship contention while managing enormous payrolls becomes a delicate balancing act for teams. Joel Embiid and Kawhi Leonard, for example, continue to draw high salaries with recent extensions, underscoring their continued value to their respective franchises.
The current offseason is redefining financial records and setting new standards for player contracts. The rich deals not only reflect the players' performance but also the growing financial muscle of NBA teams. With broadcasting deals, global viewership, and merchandise sales on the rise, franchises are increasingly willing to invest heavily in their stars.
As Jayson Tatum prepares to embark on this historic deal with the Celtics, it’s clear that the NBA is poised for yet another exciting chapter. The escalation in player salaries underscores the league's growth and the increasing value placed on elite talent. For fans and players alike, these developments promise a thrilling future filled with unforgettable moments and record-breaking achievements.