Grade-A Extension! Why Did Jalen Brunson Choose to Take a $113 Million Pay Cut?

Jalen Brunson has officially renewed his contract with the New York Knicks. According to the latest ESPN reports, Brunson has agreed to a four-year, $156.5 million extension. Brunson joined the Knicks in 2022 with a four-year, $104 million contract. This deal still has two years remaining, with salaries of $24.96 million each year, including a player option for the 2025-26 season. According to NBA rules, the starting salary of an extension can be a maximum of 140% of the final year of the current contract, meaning that $156.5 million over four years is the most Brunson can currently earn. However, if he waits until next offseason to opt out and then re-signs, he could secure a maximum deal starting at 30% of the salary cap, totaling around $269 million over five years.

By choosing the extension now, Brunson effectively leaves $113 million on the table. Specifically, from 2025 to 2028, he forgoes $37.1 million each year. This begs the question: Why would Brunson make such a decision? According to his agent, there are two main reasons for Brunson's pay cut. Firstly, the Knicks’ total salary is quickly approaching the second apron, and Brunson’s financial sacrifice helps the team maintain its current roster and operational flexibility to narrow the gap to a championship. Secondly, by opting for a player option in the fourth year of this contract, Brunson can become a free agent in 2028. By then, with ten years of experience, he could sign a max deal starting at 35% of the salary cap, potentially worth $323 million over four years, or $418 million over five years if signed in 2029.

However, Brunson himself stated in a podcast that his decision was driven by a sense of security. "My agent said I could get more, but I said I just wanted security. I don't want to gamble right now; if the opportunity is there, it's not something to take lightly." Given the many cautionary tales and the physical demands of playing under coach Tom Thibodeau, Brunson’s decision to avoid gambling on his future is understandable. Regardless of the reasons, one thing is certain: this extension is an absolute win for the Knicks. Over the next four years, they will get to utilize Brunson at a bargain rate.

In his first season with the Knicks, Brunson played at an almost All-Star level, and his performance only improved last season. He played 77 games, averaging 35.4 minutes, 28.7 points, 3.6 rebounds, and 6.7 assists per game. His shooting percentages were impressive at 47.9% from the field, 40.1% from three, and 84.7% from the free-throw line, with a true shooting percentage of 59.2%. Notably, Brunson’s performance surged as the season progressed. In the last two months of the regular season, he played 21 games, scoring 40+ points in six of them, including a 61-point game against the Spurs. During this period, he averaged 31.5 points per game, second only to his former teammate Luka Dončić’s 32.4 points.

Brunson’s playoff performance was even more remarkable. He played all 13 games, scoring 40+ points in six of them, and averaged 32.4 points, 3.3 rebounds, and 7.5 assists per game. His scoring average was the highest among players who played at least ten playoff games, with shooting percentages of 44.4% from the field, 31.0% from three, and 77.5% from the free-throw line, resulting in a true shooting percentage of 53.6%. Brunson also achieved the second-longest streak of consecutive 40+ point games in playoff history, with four such games, a feat last accomplished by Michael Jordan in 1993. Though his efficiency wasn't stellar, considering the Knicks' injury-riddled roster and the lack of ball handlers, Brunson’s performance was outstanding—opposing teams knew they had to stop him, yet he still delivered these impressive stats.

When combining his regular season and playoff performances, it’s not an exaggeration to say that Brunson was a top-ten player in the league last season. In the playoffs, his performance was at a superstar level. The fact that the Knicks managed to retain such a player with a four-year contract worth less than $160 million is a historic bargain. To put this into perspective, Brunson’s salary next season is $24.96 million, and it won't surpass $40 million until the 2027-28 season. Meanwhile, his former backup Immanuel Quickley signed a five-year, $175 million extension with the Toronto Raptors, with an average salary of $35 million, comparable to Brunson’s future earnings over the next four years.

The Knicks truly hit the jackpot with Brunson’s signing in 2022. That four-year, $104 million deal remains one of the most valuable contracts in franchise history. The upcoming season looks promising for the Knicks, with a core group including Brunson, Josh Hart, Donte DiVincenzo, and Mikal Bridges—the Villanova Four—alongside Julius Randle, Mitchell Robinson, Deuce McBride, and OG Anunoby. A championship is not out of the question.