The NBA offseason is in full swing, and with it comes a wave of significant contract signings that are reshaping the league's financial landscape. Teams across the NBA are securing their marquee talents with record-breaking deals, setting new benchmarks for player salaries. At the forefront of this development is the Boston Celtics' impending contract with Jayson Tatum, poised to become the most lucrative in NBA history.
Jayson Tatum's Historic Contract
According to reports, the Celtics are finalizing a five-year, $314 million supermax contract for Tatum. This monumental deal, set to commence in the 2025-26 season, will make Tatum the highest-paid player in the league by total value. With an average annual value (AAV) of approximately $62.8 million, Tatum's new contract eclipses the previous record held by his teammate Jaylen Brown.
Just last season, Brown inked his own historic five-year, $285 million supermax deal, which will take effect in the 2024-25 season. Brown's contract, featuring an AAV of $57.1 million, will make him the highest-compensated player in the league for that year before Tatum’s contract surpasses it the following season.
Massive Deals Across the League
The surge in player salaries is not limited to the Celtics. Paul George recently signed a four-year, $211.58 million contract with the Philadelphia 76ers, translating to an AAV of $52.3 million. Joel Embiid, also with the 76ers, continues to command a high salary of $53.3 million annually under his current deal.
Meanwhile, stars like Anthony Davis and Giannis Antetokounmpo are set to receive notable pay raises. Both players have secured three-year extensions, with each expected to earn more than $58 million annually starting in the 2025-26 season. This trend of escalating salaries underscores the NBA’s booming business, supported by substantial broadcasting deals, global viewership, and skyrocketing merchandise sales.
The Next Wave of Supermax Contracts
Looking ahead, Luka Doncic is on track to become eligible for a supermax extension next summer, positioning him as another candidate for a record-breaking contract. The precedent for these massive deals has been established by players like Nikola Jokic and Bradley Beal. Jokic signed a five-year, $276 million contract with the Denver Nuggets in 2022, while Beal secured a five-year, $251 million deal before being traded to the Phoenix Suns.
Other young stars are also reaping the benefits of their on-court performances and accolades. Anthony Edwards signed a five-year, $244 million extension with the Minnesota Timberwolves following his second All-Star appearance and first All-NBA nod. Similarly, Tyrese Haliburton's contract with the Indiana Pacers increased to around $245 million after his All-NBA Third Team selection.
Veterans Securing Their Future
Veteran superstars are not being left behind in the financial windfall. Devin Booker and Karl-Anthony Towns both agreed to four-year, $220 million extensions in 2022. Stephen Curry, the face of the Golden State Warriors' dynasty, secured a four-year, $215 million deal in August 2021. Additionally, players like Joel Embiid and Kawhi Leonard continue to draw high salaries through recent extensions with their respective teams.
The Business of Basketball
The escalation in player salaries reflects the NBA's robust financial health and the ever-increasing marketability of its stars. Teams are more willing than ever to invest heavily in their marquee players, acknowledging their on-court contributions and branding strength off the court. However, this also presents a significant challenge for front offices: balancing championship contention with enormous payrolls.
As the current NBA offseason progresses, it is redefining financial records and setting new standards for player contracts. Jayson Tatum, with his impending historic deal, exemplifies this trend and is preparing to lead the Celtics into a new era of financial and on-court successes.