Why Jalen Brunson has agreed to the greatest financial favor in NBA history

LAS VEGAS — With a chance to sign the second nine-figure contract of his career, Jalen Brunson was unavailable.

Negotiations, if you could even call them that, on a probable extension could not begin until the clock struck midnight (ET) Friday. Yet, long before any legalese came his way, the All-Star point guard could guess his team’s offer.

The New York Knicks were about to hand Brunson all that they could, even if the deal would not be commensurate with a player of his stature.

The team was capped at how much it could pay Brunson, limited to a contract that would earn him far less than one he could sign if he were to wait until 2025 free agency and re-up with the organization then.

Brunson decided well before he became eligible that he wanted to remain in New York, that he had fallen in love with the franchise, that he valued the security of a dollar today versus more dollars tomorrow, that he wanted to continue playing for head coach Tom Thibodeau and with his Villanova buddies and that he hoped to challenge for a title on a squad that considers itself a contender this upcoming season and beyond.

But once Friday arrived, Brunson had more important plans.

Instead of prioritizing business, Brunson was chilling with his dear friend and teammate, Josh Hart. He was so eager to keep hanging out with his team that he put off re-signing … because he was too busy hanging out with his team.

https://twitter.com/joshhart/status/1811868386068234540?ref_src=twsrc%5Etfw

 

Brunson put pen to paper on the extension Friday afternoon, a historic moment for the Knicks. No one else in league history has recommitted himself to a franchise in this fashion.

The extension will pay him $156.5 million over four years, $113 million guaranteed less than he could have received had he waited until free agency. No player has ever left this much money on the table — especially not one in the early part of his prime.

The NBA’s most famous cases of major discounts occurred with players who had already received giant paydays. Dirk Nowitzki took a three-year, $25 million deal to return to the Dallas Mavericks in 2014 when he could have earned nearly four times as much had he chosen to, but Nowitzki was already in his mid-30s. Tim Duncan chopped chunks off his salary so he could play forever with the San Antonio Spurs, but he was an established vet by that point.

Brunson is opting for the cheaper contract today instead of hitting free agency a year from now when he would be eligible for a max contract worth a projected $269.1 million over five years.

There were financial arguments for why locking in the money was worthwhile. Brunson appreciated the security an extension would provide. This is still more money than some CEOs make in a lifetime. He may as well protect himself against injury.

Signing an extension now also makes him eligible for his next extension a year earlier than if he had waited until free agency to sign the five-year pact. Those extra 365 days could matter.

But there’s a reason this is a remarkable moment. The Knicks are now open for business in an era bound to be dominated by a punitive collective bargaining agreement that will stifle the flexibility of any hyper-expensive team.

Based only on the dollars, Brunson just enacted the greatest financial favor in NBA history.

And it’s not close.

He signed with one priority in mind: Take whatever reasonable measures he could to go after that ring. The Knicks can now move forward knowing they have Brunson under a team-friendly contract through at least 2028. His new deal will kick in for the 2025-26 season, and he has a player option for the final year. It comes with all the bells and whistles, including a 15 percent trade kicker, a league source said.

New York’s hopes of staying below the dreaded second apron, not just in 2024-25 but also in the following season and possibly beyond, just turned far more realistic. The Knicks, who traded five first-round picks (including four unprotected ones) for Mikal Bridges earlier this offseason, already believe their title window is open. The Brunson extension just scooted the glass up even more, especially through 2026.

Bridges is on a bargain contract until then, making $23.3 million this season and $24.9 million after that. Brunson will earn in the realm of $34.9 million during his first year of the deal when the Knicks will have $153.2 million committed to nine players: Brunson, Bridges, Hart, OG Anunoby, Mitchell Robinson, Donte DiVincenzo, Miles McBride, Pacome Dadiet and Tyler Kolek. The second apron projects to be approximately $207.8 million that season.

Staying under $207.8 million in payroll would create valuable resources for the Knicks. If they go over that threshold, they kiss goodbye to the midlevel exception, the ability to make most trades and more.

Brunson may receive the chance to earn most of the money he gave up back. As The Athletic detailed earlier this week, the extension sets him up to hit free agency in 2028 following his 10th year in the NBA. He will be eligible for the largest max contract a player can receive, worth a projected $417 million over five years. If Brunson were to sign that, spiked salaries in 2028-29 and 2029-30 would narrow the gap.

But 2028 is four years into the future. No one knows what will occur between now and then.

Players get hurt. They regress. Small point guards such as Brunson are historically more prone to such misfortune. For whatever reason, the Knicks could fall off by then and choose to turn in a different direction. They could employ a new front office or coach. This is the NBA, where sweeping changes can occur overnight, let alone over four years.

There is no guarantee Brunson will make back this money. But of course, he didn’t do this to get rich. He did it to hand his team the best chance to win.

(Top photo of Jalen Brunson: Jesse D. Garrabrant / NBAE via Getty Images)