The NBA offseason is currently in full swing, and it's proving to be a watershed moment for franchise player contracts. Teams across the league are locking in their stars with lucrative deals, but none have made waves quite like the Boston Celtics. The Celtics are reportedly finalizing the largest contract in NBA history with Jayson Tatum, a move that underscores the team’s commitment to championship aspirations and the value they place on their star forward.
Jayson Tatum’s Historic Deal
According to multiple reports, the Celtics are planning to sign Tatum to a staggering five-year, $314 million supermax contract. This historic deal, which will commence in the 2025-26 season, has set a new standard in the NBA, making it the richest contract in the league's history in terms of total value. The average annual value (AAV) of Tatum's contract is roughly $62.8 million, completely eclipsing previous records.
Tatum’s new contract surpasses the record previously held by his teammate, Jaylen Brown. Last season, Brown signed a five-year, $285 million supermax deal set to kick off in the 2024-25 season. With an AAV of $57.1 million, Brown was set to be the highest-paid player in the league for that year, but Tatum's contract now redefines those limits.
Comparative Contracts
While Tatum's deal is the headline-maker, other significant contracts have also been finalized this offseason. Paul George has secured a four-year, $211.58 million contract with the 76ers, equating to an AAV of $52.3 million. Meanwhile, Joel Embiid continues to command a high salary under his current deal, which pays him $53.3 million annually.
Star players Anthony Davis and Giannis Antetokounmpo are in line for significant pay raises as well, with each expected to earn more than $58 million annually under their respective three-year extensions that begin in the 2025-26 season. Luka Doncic, another name consistently mentioned among the NBA’s elite, is set to become eligible for a supermax extension next summer, putting him on the track for another potentially record-setting deal.
Lucrative Deals Across the Board
In the past few years, the NBA has seen an unprecedented escalation in player salaries, with multiple athletes securing mammoth deals. Nikola Jokic signed a five-year, $276 million deal with the Nuggets in 2022, closely followed by Bradley Beal's five-year, $251 million contract before he was traded to the Suns. More recently, Anthony Edwards secured a five-year, $244 million extension with the Wolves, a reward for his second All-Star appearance and first All-NBA nod. Tyrese Haliburton also saw his contract rise to around $245 million following his All-NBA Third Team selection, having initially signed a five-year rookie max extension with the Pacers.
Other notable contracts include Devin Booker and Karl-Anthony Towns each signing four-year, $220 million extensions in 2022, and Stephen Curry securing a four-year, $215 million deal in August 2021. These deals signify the league's upward financial trajectory and the value placed on top-tier talent.
The Business of Basketball
This surge in high-value contracts reflects the booming business environment of the NBA. Factors like broadcasting deals, global viewership, and merchandise sales have created a financial ecosystem that allows teams to invest heavily in their stars. These contracts are not just rewards for on-court contributions; they also underscore the marketability and brand strength of these athletes off the court.
Despite the financial outlay, teams must skillfully manage their enormous payrolls while maintaining championship contention. It’s a delicate balancing act that calls for astute financial planning and strategic talent acquisitions.
As the NBA offseason progresses, financial records continue to be redefined, and new standards are set for player contracts. Jayson Tatum, poised to embark on his historic deal with the Celtics, epitomizes the league’s financial evolution. His contract is more than a testament to his talent—it marks a significant milestone in the ever-escalating economics of professional basketball.