The NBA offseason is in full swing, with teams across the league finalizing lucrative deals and locking in their stars. Among the most significant moves, the Boston Celtics are reportedly on the brink of finalizing the largest contract in NBA history with their star player, Jayson Tatum. The Celtics plan to sign Tatum to a five-year, $314 million supermax contract starting in the 2025-26 season, marking the richest deal in the league's history in terms of total value.
Setting New Records
Tatum's contract, with an average annual value (AAV) of approximately $62.8 million, will surpass the previous record held by his teammate, Jaylen Brown. Brown inked a five-year, $285 million supermax deal last season, which will commence in the 2024-25 season. For that year, Brown's contract will make him the highest-paid player in the league, boasting an AAV of $57.1 million.
Around the league, several other notable signings have taken place. Paul George has secured a four-year, $211.58 million contract with the Philadelphia 76ers, ensuring an AAV of $52.3 million. Meanwhile, Joel Embiid continues to command substantial earnings, with his current deal valuing his annual take at $53.3 million. Other NBA stars, including Anthony Davis and Giannis Antetokounmpo, are poised to receive significant pay raises with their respective three-year extensions set to begin in the 2025-26 season, averaging over $58 million annually.
A Trend of Supermax Extensions
The wave of supermax contracts highlights the NBA's burgeoning business and the escalating value teams place on their marquee players. Nikola Jokic's five-year, $276 million deal with the Denver Nuggets in 2022, Bradley Beal's five-year, $251 million agreement followed by his trade to the Suns, and Anthony Edwards' recent five-year, $244 million extension with the Minnesota Timberwolves all exemplify this trend. Edwards' contract is particularly notable as it followed his second All-Star appearance and his first All-NBA nod.
Other significant extensions include Tyrese Haliburton's five-year rookie max deal with the Indiana Pacers, which escalated to around $245 million following his All-NBA Third Team selection. Additionally, Devin Booker and Karl-Anthony Towns each signed four-year, $220 million extensions in 2022, while Stephen Curry secured a four-year, $215 million deal in August 2021. Joel Embiid and Kawhi Leonard continue to draw high salaries with their recent extensions, underscoring their value to their respective teams.
Investing in Star Power
The financial commitments made to these athletes are a testament to their on-court contributions, marketability, and overall brand strength. Teams are increasingly willing to invest heavily in their stars, driven by the NBA’s booming business landscape. With broadcasting deals, global viewership, and merchandise sales on the rise, the economics of the league support these massive contracts.
Managing enormous payrolls while maintaining championship contention becomes a delicate balancing act for NBA teams. As they strive to assemble competitive rosters, they must also navigate the financial challenges posed by these record-setting contracts.
A New Standard
The current NBA offseason is not just reshaping financial records but also setting new standards for player contracts. The impending deal between Jayson Tatum and the Celtics epitomizes this shift. As Tatum prepares to embark on this historic deal, the league watches closely, recognizing that such financial commitments reflect the players’ worth both on and off the court.
In summary, the tidal wave of supermax contracts and extensions this offseason underscores the evolving dynamics of NBA payrolls. With Tatum's record-breaking deal on the horizon, the financial landscape of the league continues to evolve, highlighting the significant investments teams are willing to make in securing their star players for the future.