The NBA offseason has rapidly become a period of monumental financial moves, with teams securing their star players to historic contracts. Recently, the Boston Celtics have reportedly reached an agreement with Jayson Tatum on the richest deal in NBA history, a five-year, $314 million supermax contract that will commence in the 2025-26 season. This unprecedented contract underscores the league's escalating player salaries driven by increasing revenue streams.
Tatum's Historical Deal
This supermax deal, reported to have an average annual value (AAV) of approximately $62.8 million, surpasses the previous record set by Tatum's teammate, Jaylen Brown. Last season, Brown inked a five-year, $285 million supermax deal, and his contract will begin in the 2024-25 season, making him the highest-paid player in the league for that year with an AAV of $57.1 million.
Comparisons Across the League
Several notable players have also signed significant extensions this offseason. Paul George secured a four-year, $211.58 million contract with the 76ers, ensuring an AAV of $52.3 million. Closer in value is Joel Embiid's current deal, which commands $53.3 million annually. As the Celtics and their competitors continue to make hefty financial commitments, the trend of increasing player salaries is evident.
Upcoming Pay Raises
Further escalating the financial landscape are upcoming pay raises for prominent players. Anthony Davis and Giannis Antetokounmpo are set to receive significant boosts, with their three-year extensions each bringing in more than $58 million annually starting from the 2025-26 season. Additionally, Luka Doncic is expected to become eligible for a supermax extension next summer.
Ongoing Contracts and Extensions
Several other stars have secured lucrative deals in recent times. Nikola Jokic signed a five-year, $276 million deal with the Nuggets in 2022, while Bradley Beal sealed a five-year, $251 million contract before being traded to the Suns. Anthony Edwards' five-year, $244 million extension with the Wolves followed his second All-Star appearance and first All-NBA nod. Tyrese Haliburton's five-year rookie max extension with the Pacers saw an increase to around $245 million after his All-NBA Third Team selection.
Additionally, Devin Booker and Karl-Anthony Towns both signed four-year, $220 million extensions back in 2022, cementing their status among the highest earners in the league. Stephen Curry's four-year, $215 million deal, secured in August 2021, also adds to this growing list of lucrative NBA contracts.
Broader Economic Impacts
The soaring salaries are a testament to the NBA's booming business model, propelled by lucrative broadcasting deals, global viewership, and burgeoning merchandise sales. This financial environment encourages teams to invest heavily in their stars, reflecting the players' on-court contributions, marketability, and brand strength off the court.
The escalated player salaries, while a sign of robust financial health for the league, also present challenges for teams striving to balance championship contention with colossal payrolls. For the Celtics, securing Tatum's services with this record-breaking contract is a clear indication of their commitment to maintaining their status as a championship contender.
As the NBA offseason continues to redefine financial records, Jayson Tatum's historic deal with the Celtics stands as a landmark moment, signaling the league's evolving landscape in player valuations and contract standards.