Jalen Brunson was probably already the most popular professional athlete in New York, but his decision to sign a four-year, $156.5 million contract extension with the Knicks on Friday clinched it. The payday, while significant, represents only around 58% of what he could have earned by waiting until next offseason to re-sign on a projected five-year, $269.1 million max deal as an unrestricted free agent.
The Knicks will be able to put those savings to good use in constructing what the rest of what us hope will be their first championship roster since 1973.
Still, this signing comes with quite a few questions. Why would Brunson leave so much money on the table? How will his decision to take less impact other stars around the league? What does this newfound flexibility mean for the Knicks — do they suddenly just have another $113 million to utilize over the next few years?
Well, the answers here are complicated and messy. We won’t fully understand the implications of Brunson’s decision for years to come. But let’s walk through every element of this deal and try to figure out what it means for Brunson, the Knicks and the NBA as a whole moving forward.
How much did Brunson really leave on the table?
If you assume that Brunson would have otherwise signed a five-year max contract with the Knicks next summer, the gap between that deal and the one he signed Friday was roughly $113.6 million. However, that is a significant oversimplification of the situation.
Let’s look at this contract year-by-year. The 2024-25 season, in either scenario, is a wash. The only way that the Knicks could have added salary to Brunson’s deal for this upcoming season would have been by creating cap space to execute a renegotiation-and-extension. They operated above the cap, so that wasn’t on the table. Brunson was always going to earn the $25 million or so that he was contractually guaranteed when he originally signed in New York. The new money conversation begins with the 2025-26 season.
This new deal covers three guaranteed seasons before strategically giving Brunson the chance to opt out ahead of the 2028-29 campaign (more on that in a bit). He received a 40% raise on his 2024-25 salary, which rises 8% annually thereafter. That is the maximum allowable under veteran extension rules. If Brunson had waited until next summer to re-sign, his new salary would not have been linked to his old one. He would have become a free agent eligible to earn anything up to his max, which would have been 30% of the salary cap as a seven-year veteran with those same 8% annual raises attached. The difference in those figures is significant, but it’s not $113.6 million.
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2025-26
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$34.94 million
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$46.39 million
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$11.45 million
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2026-27
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$37.740 million
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$50.11 million
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$12.37 million
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2027-28
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$40.54 million
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$53.82 million
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$13.28 million
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Total
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$113.22 million
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$150.32 million
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$37.10 million
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In actuality, Brunson is sacrificing around $37.1 million over three years compared to what he otherwise would have made by waiting an additional offseason.
That aforementioned $113.6 million figure is legitimate in that it covers what this extension pays Brunson compared to the absolute maximum he could have earned by waiting. However, it was unlikely that Brunson actually would have wanted to commit himself to New York beyond the 2027-28 season for one simple reason: That will be his 10th season in the NBA.
After a player has played 10 NBA seasons, he becomes eligible for the highest possible max contract, one that starts at 35% of the salary cap. What Brunson has actually done with this extension, and what he probably would have done had he actually become a free agent next offseason, was set himself up to become a free agent at the exact moment in which he is eligible to earn the most possible money while still retaining the most possible value as a player.
Brunson will only be 32 in the summer of 2028, and the salary cap is expected to rise 10% annually each year because of the reported new media rights deal. That sets a projected salary cap of around $205.8 million for the 2028-29 season. If he becomes a free agent in the summer of 2028, as is now possible, he will be eligible to re-sign on an enormous five-year contract that would carry him through the end of his prime.
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2028-29
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$72.04 million
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2029-30
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$77.81 million
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2030-31
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$83.57 million
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2031-32
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$89.33 million
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2032-33
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$95.10 million
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Total
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$417.85 million
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There are other potential permutations here that spit out slightly different numbers, such as Brunson again extending early or picking up his player option for the 2028-29 season, rolling the dice on another 10% cap jump the year after that and an even bigger follow-up contract. There is inherent uncertainty here.
We have no idea what kind of player Brunson will be in 2028, or in what state he will find the league at that time. He has nothing close to a guarantee here, but by signing this extension, Brunson is setting himself up to potentially make up that lost salary down the line. His playing style figures to age relatively well as it isn’t based on athleticism. He has a great relationship with his team. It doesn’t hurt that his agent, Sam Rose, is the son of Leon Rose, president of the Knicks.
From that perspective, this extension comes off as more of a partnership decision. Brunson is helping the Knicks during their peak championship window. Down the line, he has a chance to be well-compensated for doing so. He’s trusting the Knicks to take care of him as he has done for them.
Is it wise to place that sort of trust in a team? Well, that’s for each person to decide for themselves.
With the potential impact on New York’s championship odds in mind, Brunson appears willing to take the risk associated with signing the extension now. While he hasn’t guaranteed himself a title, he has significantly improved his chances of doing so. Additionally, by signing now, he has secured $156.5 million in generational wealth, a substantial amount for a second-round pick who has earned around $60 million in his career so far. This financial benefit could influence future decisions made by stars in the league, as the rapidly growing NBA salaries may prompt players to prioritize security over maximizing every last dollar.
Contrary to the $270 million contract he could have signed next summer, which was not a guarantee, Brunson chose to secure a significant amount of money now rather than taking the risk of waiting. This decision is underscored by examples from NBA history, such as Isaiah Thomas’ experience, where unforeseen circumstances can drastically change a player’s trajectory.
In addition to the tangible financial benefits, such as endorsements and potential sneaker deals, that come with being New York’s most popular athlete, Brunson’s early extension could have other financial advantages. Winning a championship with the Knicks could elevate his market value and open up new opportunities that may not have been available otherwise. This sacrifice could ultimately lead to significant rewards off the court for Brunson.
In terms of the impact on other stars and the NBPA, while there may be concerns about setting a precedent for players to sacrifice money for the good of the team, it would likely require a player of greater stature than Brunson to have a significant impact in that regard. LeBron James’ past decisions to take less money for the benefit of his team serve as an example of how a player’s actions can influence the league as a whole. It is no coincidence that James became more involved with the NBPA during his time with the Heat, eventually becoming a union vice president during his first season back with the Cavaliers. He consistently earned his maximum salary until this summer, when he took a slightly lower salary to help the Lakers avoid the luxury tax.
Brunson’s situation is unique and not comparable to James. While owners and executives may bring up Brunson in negotiations, it is important to note that the league’s highest-profile players and recent MVPs are all earning max salaries or close to it. The new CBA rules have impacted max players and the middle class players alike, with some players no longer earning max contracts due to the changes.
The money players choose not to take does not disappear, as the CBA dictates that both players and owners receive a certain percentage of basketball-related income. Player salaries are fixed, but the allocation of that money can vary. The system is designed so that if one player sacrifices money, it can be reallocated to other players. With the league’s revenue set to increase significantly due to a new TV deal, player salaries are expected to rise as well.
With Brunson signed, the Knicks have secured their core players through the 2025-26 season, with Julius Randle being the next key player eligible for an extension. Mitchell Robinson and Mikal Bridges are also important players for the Knicks, with their contract situations needing to be addressed in the near future. The new deal for Bridges would amount to approximately $156 million over four years, with the possibility of including a player option to reach free agency after his 11th season. This would make him eligible for the 35% max contract. The breakdown of the deal is as follows:
– 2025-26: $24.90 million
– 2026-27: $34.86 million
– 2027-28: $37.65 million
– 2028-29: $40.44 million
– 2029-30: $43.23 million
– Total: $181.07 million
Bridges could potentially be sacrificing a significant amount of money by accepting this deal, as he could re-sign with the Knicks for a projected $296 million over five years as a free agent in 2026. Both Bridges and Brunson have been underpaid in their careers, with Bridges’ previous $90 million extension with Phoenix already looking outdated.
The Knicks are currently safe from the second apron for the 2024-25 season due to the structure of the Bridges trade. The Brunson extension also offers protection against the second apron in the 2025-26 season. Staying below the second apron is crucial for the Knicks to maintain flexibility and avoid penalties that could impact their draft picks.
Looking ahead to the 2026-27 season, there are multiple scenarios depending on player extensions and contracts. The goal for the Knicks is to maximize flexibility and potentially make a championship run during Brunson’s prime years. The money saved on Brunson’s deal allows the Knicks to stay below the second apron for the next few years, giving them room to adjust the roster as needed. following sentence in a more concise way:
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