The NBA offseason is brimming with activity as teams secure their star players with monumental contracts, setting new financial benchmarks in the league's history.
Historic Deal for Jayson Tatum and the Celtics
Leading the headlines, the Boston Celtics are on the cusp of finalizing an unprecedented contract with Jayson Tatum. This five-year, $314 million supermax contract is set to commence in the 2025-26 season, catapulting Tatum to the top of the financial hierarchy in the NBA with an average annual value (AAV) of roughly $62.8 million. This deal not only underscores Tatum's immense value to the Celtics but also marks the richest contract in the league's history in terms of total value.
This record-setting agreement surpasses the previous high mark held by Tatum's teammate, Jaylen Brown, who inked a five-year, $285 million supermax deal last season. Brown's contract, which kicks off in the 2024-25 season, boasts an AAV of $57.1 million, making him the highest-paid player in the league for that year until Tatum's contract begins.
Significant Contracts Across the League
The Celtics are not alone in their investment in top-tier talent. Paul George's move to the Philadelphia 76ers was accompanied by a lucrative four-year, $211.58 million contract, translating to an AAV of $52.3 million. Meanwhile, the 76ers' cornerstone, Joel Embiid, continues to command a salary of $53.3 million annually under his current deal.
Elsewhere, the Los Angeles Lakers and the Milwaukee Bucks have ensured their respective stars, Anthony Davis and Giannis Antetokounmpo, remain integral parts of their future plans. Both players are set to receive significant pay raises, with their three-year extensions each bringing in more than $58 million annually, starting in the 2025-26 season.
Future Supermax Candidates and Recent Deals
Looking ahead, Luka Doncic of the Dallas Mavericks is poised to negotiate a supermax extension next summer, which could further escalate the financial landscape of the league. Additionally, the Denver Nuggets secured Nikola Jokic with a five-year, $276 million deal in 2022, while Bradley Beal’s five-year, $251 million deal led to his transfer to the Phoenix Suns.
The Minnesota Timberwolves have also locked in their young star, Anthony Edwards, with a five-year, $244 million extension following his second All-Star appearance and first All-NBA nod. Another emerging talent, Tyrese Haliburton, signed a five-year rookie max extension with the Indiana Pacers. His contract increased to around $245 million after his All-NBA Third Team selection. These deals highlight the value teams place on cultivating and retaining young talent.
Consistency Among Established Players
The trend of lucrative deals isn't confined to rising stars. Veteran players like Devin Booker and Karl-Anthony Towns also secured significant contracts in 2022, each signing four-year, $220 million extensions. Golden State Warriors icon Stephen Curry remains a financial force, having secured a four-year, $215 million deal in 2021. Meanwhile, perennial MVP candidates Joel Embiid and Kawhi Leonard continue to draw high salaries with recent extensions, reflecting their sustained excellence on the court.
Impact of Financial Growth in the NBA
These mammoth contracts underscore the NBA's booming business, driven by surging broadcasting deals, global viewership, and merchandise sales. The financial windfall has enabled teams to invest heavily in their stars, making these record-breaking deals possible. These contracts not only reward players for their on-court achievements but also for their marketability and brand strength off the court.
For teams, this entails walking a fine line between maintaining championship contention and managing ballooning payrolls. As the current NBA offseason continues to shatter financial records and set new standards for player compensation, it’s evident that the league's economic landscape is evolving rapidly.
At the forefront of this financial revolution, Jayson Tatum is preparing to embark on a historic journey with the Celtics, heralding a new era of player valuations and contract negotiations in the NBA.