Jalen Brunson signed a 4 year - $156.5 million contract extension with the Knicks. If he had signed the extension next offseason, he would have been eligible to sign for 5 years and approximately $269 million max extension. He essentially left $113 million on the table. Starting in 2025-2026 he would have been making 35% of the salary cap, a $46.3 million cap hit.

 

Here is the breakdown of the max contract he could have signed rounded to the nearest decimal and using the 8% increase rule for veteran contracts from year 1 to year 2 - then applying that fixed increase amount to the other years in the contract:


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2025-2026: $46.3 million


2026-2027: $50 million

2027-2028: $53.7 million


2028-2029: $57.4 million


2029-2030: $61.1 million

 

Here is the breakdown of the actual contract Brunson just signed:

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2024-2025: $34,944,001

2025-2026: $37,739,521

2026-2027: $40,535,041

2027-2028: $43,330,561 (Player Option)

 

If Jalen Brunson had not signed the recent extension, his salary for the 2024-2025 season under his previous contract would have been approximately $24.96 million but it was a player option. He could have signed a for a $42.176 million cap hit (30 % of salary cap) for next season so he left almost $12 million on the table for 2024-2025.

 

If you look at the first 3 years (leaving out player option) the Knicks benefit from roughly $37 million in savings.Its important to note that Brunson also has a player option in the 4th year of this extension which would be the 2027-2028. If he chooses to opt out, he would potentially be eligible to sign a supermax extension (35% of the cap) as it is his 10th year of service. The number would be approximately 5 years $380 million (based on expected salary cap growth of 10% annually).

 

Brunson has taken a significant pay cut which allows the Knicks to have some cap flexibility and gives them an opportunity to fill out their roster with more valuable players while also giving them some potential tax relief. This keeps the Knicks under the second apron and gives the Knicks a greater chance at re-signing Mikal Bridges and Julius Randle who are both eligible for extensions this year. Brunson is happy with the way the Knicks have been able to acquire key players such as Anunoby and Bridges to build a roster which is a contender for the NBA title. Being the star of the Knicks also has its benefits in endorsements, popularity, and legacy which will be prominent beyond Brunson’s playing career. Taking this large of a reduction in salary will only boost his approval ratings in New York and shows his commitment to winning with this Knicks team.

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Published July 15, 2024.