Shai Gilgeous-Alexander and Devin Booker have recently made headlines by securing contract extensions that make them the first players to exceed $70 million in salary per season. This remarkable trend reflects the growing financial landscape of the NBA, fueled by lucrative new TV deals that promise substantial revenue increases for teams. This article will explore how NBA contracts have evolved over the years, showcasing significant deals that have shaped the league’s financial structure.
The landscape of NBA contracts has evolved dramatically from the 1980s to today. Historical contracts, such as Magic Johnson’s groundbreaking 25-year, $25 million deal with the Los Angeles Lakers in 1981, set a precedent for player-team relationships. This was one of the earliest landmark deals, demonstrating the franchise’s faith in Johnson and altering the perception of player salaries.
In 1983, Larry Bird signed a seven-year agreement worth $15 million, marking him as the highest-paid player at that time, while Moses Malone’s $13.2 million offer sheet with the Philadelphia 76ers in 1982 showcased the complexities of early free agency. Isiah Thomas also made headlines with his long-term commitment to the Detroit Pistons, signing an 11-year contract worth $12 million, which was uncommon for young stars.
Michael Jordan’s ascent magnified player salaries, especially after his return in 1996 when he negotiated back-to-back deals exceeding $30 million annually—an unprecedented figure that remains significant even when adjusted for inflation. The impacts continued through the ’90s with rookie contracts like Chris Webber’s and Kevin Garnett’s that prompted regulatory changes in the league.
Further, deals involving Juwan Howard and Shaquille O’Neal highlighted the intricacies of salary cap management during the 1996 free agency, with Howard’s $100 million deal prompting Shaq to negotiate his significant contract with the Lakers. The 2001 contract signed by Allan Houston, deemed one of the worst deals of its era, led to the creation of the “Allan Houston” rule, allowing teams to waive players without financial repercussions under specific circumstances.
In more recent developments, LeBron James transformed contract dynamics by utilizing short-term deals with player options throughout his career, amplifying his influence within franchise operations. Stephen Curry and Damian Lillard also set benchmarks with their lucrative contracts, with Curry being the first player to secure a $200 million deal after leading the Warriors to multiple championships, and Lillard earning a $122 million extension that made him a key figure in franchise loyalty narratives.
The vast increases in player salaries signal not just financial growth for the players but also a shift in power dynamics in the league. As the NBA continues to grow, so too does the potential for contracts that exceed current records. The future looks promising for players, presenting both opportunities and challenges as they navigate their careers amid changing financial landscapes.