Jalen Brunson was arguably already New York City’s most beloved professional athlete, but his decision to sign a four-year, $156.5 million contract extension on Friday solidified that status. Although the payday is substantial, it comprises only about 58% of what he could have earned next offseason with a projected five-year, $269.1 million max deal as an unrestricted free agent. This deal provides the Knicks with flexibility to build their first championship roster since 1973.
Brunson’s contract has faced some criticism. Questions arise about why he left so much money on the table and how his decision impacts other league stars. Additionally, what does this added flexibility mean for the Knicks? Do they have an extra $113 million to work with over the next several years?
The answers are complex and will take years to fully understand. Let’s delve into the deal’s elements to figure out what it means for Brunson, the Knicks, and the league.
How much money did Brunson leave on the table?
If Brunson had re-signed with a five-year max contract next summer, the gap would have been about $113.6 million. However, this is an oversimplification for several reasons. In both scenarios, the 2024-25 season is a wash, as Brunson was always set to earn around $25 million under his contract.
From the 2025-26 season onward, Brunson’s new deal gives him a 40% raise on his 2024-25 salary, increasing annually by 8%. Had he waited until next summer, his new salary could have been up to 30% of the salary cap with similar 8% annual raises. This is a significant difference but not quite $113.6 million.
In the seasons following 2025-26, Brunson sacrifices around $37.1 million compared to what he could have earned. The projected max salary difference would be $11.5 million in 2025-26, $12.4 million in 2026-27, and $13.3 million in 2027-28.
The new deal also sets Brunson up to become a free agent after the 2027-28 season, his 10th in the NBA, allowing him to be eligible for the highest max contract, starting at 35% of the salary cap. The salary cap is expected to rise annually, potentially reaching $205.8 million by the 2028-29 season. Thus, he could sign a lucrative five-year contract in 2028.
Why did Brunson sign the extension now?
Signing the extension now guarantees him $156.5 million, highlighting financial security amid a growing income environment. This decision might impact other stars, with guaranteed money now appearing more attractive than waiting for potentially higher earnings.
By signing early, he avoids the risks associated with potential injuries or dips in performance. The case of Isaiah Thomas, who went from MVP candidate to signing a minimum contract, illustrates how quickly fortunes change in the NBA.
How does this affect other star players?
Other stars might now prioritize security over maximizing every last dollar. Brunson choosing to help the team improve its championship odds by taking less money could set a precedent for others, though it does not mean a widespread decline in player salaries, as the overall player revenue share remains largely fixed.
What does this mean for the Knicks?
The Knicks need to re-sign Julius Randle, Mitchell Robinson, and potentially Mikal Bridges in the coming years. With Brunson’s extension, the Knicks have more flexibility to avoid the league’s punitive second apron, especially crucial for maintaining long-term competitiveness. This contract positions the Knicks to maximize their championship window and provides financial agility for at least the next few seasons.