In an almost unprecedented financial move to provide roster flexibility to a competitive team, New York Knicks All-NBA guard Jalen Brunson has agreed to a four-year, $156.5 million contract extension. This deal is $113 million less guaranteed than he could have signed for a year from now, according to his agent, Sam Rose of CAA, who informed ESPN on Friday.
Starting in the 2025-26 season, the contract will cost Brunson $37.1 million over the next three years and includes a player option for the fourth year, Rose said. This option could allow Brunson to reclaim the $113 million on a four-year, $323 million maximum extension in 2028 or a new five-year, $418 million deal in 2029.
Despite the inherent risks of injury and unforeseen complications associated with delaying his most lucrative NBA paydays, Jalen Brunson’s main focus is to maximize his career’s prime with the Knicks’ most talented and deep roster since the 1990s.
Choosing the four-year, $156.5 million deal over the five-year, $269.1 million contract in 2025 has significant implications for the Knicks’ ability to maintain their current roster and make further moves to pursue a championship. This deal helps the Knicks avoid the second-apron salary cap level, a punitive threshold that severely restricts a team’s ability to trade, sign players, and use draft picks.
Brunson has studied championship organizations and franchise stars, such as Patrick Mahomes’ Kansas City Chiefs, Tom Brady’s New England Patriots, and Derek Jeter’s New York Yankees, using their strategies as a blueprint for structuring contracts to support sustainable title runs.
Brunson’s arrival to the Knicks on a four-year, $104 million free agent deal two years ago has been one of the most transformative acquisitions in the league over the past decade. After starting his career as a backup point guard with the Dallas Mavericks, Brunson has developed into one of the NBA’s most impactful players and leaders. In the 2023-24 season, he earned All-NBA honors and finished in the top five in MVP voting, averaging 28.7 points per game and setting a franchise record with 3,481 points scored or assisted on. He also had 11 games with 40 points during the regular season and became the first Knicks player with 40 points and five assists in four consecutive playoff games, according to ESPN Stats & Information.
The Knicks have become better and more expensive this offseason. They signed OG Anunoby to a five-year, $212.5 million deal and traded for Brooklyn Nets forward Mikal Bridges and the remaining two years, $48 million on his contract.
Brunson’s connection to the Knicks is strong and reflects his faith in the organization. Knicks president of basketball operations Leon Rose was Brunson’s agent before joining the team in 2020. Brunson’s father, Rick, is a Knicks assistant coach and was a longtime client of Rose’s during his agent days. The Knicks have surrounded Brunson with a star-studded cast, including his former Villanova national championship teammates, creating a remarkable synchronicity on and off the floor.
In the modern era, All-NBA player discounts to allow salary cap flexibility have included San Antonio‘s Tim Duncan taking $11 million less than the maximum in 2007 to keep Manu Ginobili and Tony Parker and Golden State‘s Kevin Durant taking $10 million less to keep Shaun Livingston and Andre Iguodala in 2017. LeBron James accepted $2.6 million less on a two-year, $101 million deal this offseason to avoid the second apron for the Los Angeles Lakers.
This time, Brunson is taking a $37 million loss that comes with $113 million of total risk to chase a title with the Knicks.
