The NBA offseason is proving to be a transformative period, with teams doubling down on their commitment to their superstar players through unprecedented contracts. Central to the current buzz is the Boston Celtics' reported finalization of the largest contract in NBA history with Jayson Tatum.
Record-Setting Deal for Jayson Tatum
The Celtics are reportedly set to sign Jayson Tatum to a five-year, $314 million supermax contract, which will commence in the 2025-26 season. This deal is unparalleled in the league's history, both in total value and average annual value (AAV). Tatum's contract will average approximately $62.8 million per year, surpassing the previous record held by his teammate, Jaylen Brown.
Brown's contract, inked last season, was a five-year, $285 million supermax deal that will kick in during the 2024-25 season. With an AAV of $57.1 million, Brown's deal had set the benchmark at the time. Tatum's upcoming contract not only eclipses Brown's in overall value but also redefines the financial landscape of the league.
Other Major Contracts Around the League
Meanwhile, Paul George has secured a four-year, $211.58 million contract with the Philadelphia 76ers, further showcasing the league's financial growth. George’s contract will see him earning an impressive $52.3 million annually. Not far behind, Joel Embiid continues to command a high salary with his current deal delivering an AAV of $53.3 million, a testament to his position as a cornerstone of the 76ers.
Looking ahead to players who are set to receive significant pay bumps, Anthony Davis and Giannis Antetokounmpo are both gearing up for lucrative three-year extensions, which will each net them more than $58 million per season, starting in the 2025-26 season. The anticipation around these extensions further highlights the escalating financial stakes within the NBA.
Future Contracts and Draft Prospects
One of the league's brightest young stars, Luka Doncic, will be eligible for his own supermax extension next summer, setting the stage for what could be another groundbreaking deal. Nikola Jokic, who signed a five-year, $276 million deal with the Denver Nuggets in 2022, is another example of the monumental financial investments teams are making to secure their franchise players.
In a similar vein, Bradley Beal's five-year, $251 million contract underscores the value he brought before his trade to the Suns. The Minnesota Timberwolves also locked in their future by signing Anthony Edwards to a five-year, $244 million extension following his second All-Star appearance and his first All-NBA nod. Edwards' deal exemplifies the trend of rewarding young talent early in their careers.
Rounding out these significant deals is Tyrese Haliburton, whose five-year rookie max extension with the Pacers increased to approximately $245 million after his selection to the All-NBA Third Team. Other notable contracts in recent years include Devin Booker's and Karl-Anthony Towns' four-year, $220 million extensions in 2022, and Stephen Curry’s four-year, $215 million deal secured in August 2021.
Financial Growth of the NBA
The NBA's financial landscape is shifting rapidly, with escalating salaries reflecting not just players' on-court contributions but also their marketability and brand strength off the court. This surge in player salaries underscores the booming business of the NBA, buoyed by rising broadcasting deals, global viewership, and merchandising sales.
For teams, the challenge now lies in maintaining championship contention while managing these enormous payrolls. The current offseason is not just breaking financial records but also setting new standards for player contracts, symbolizing the league's robust economic health.
As Jayson Tatum prepares to embark on his historic deal with the Celtics, the NBA continues to witness transformative moves that will shape the future financial dynamics of the sport.