In recent years, the NBA's player contract amounts have surged like a tide. Back in 2016, when Mike Conley signed a five-year, $150 million contract, the NBA's top salaries were stormy.
Surprisingly, before fans could adjust to the $30 million a year salary, they saw Wilson set a new record with $47 million, Jokic with $50 million, Lillard with $60 million, and the size of the contract grew bigger and bigger. The top players in the NBA earn annual salaries of Stephen Curry and Damian Lillard on a four-year, $210 million contract, followed by Trae Young, Anthony Edwards and Tyrese Halliburton for five-year, $260 million.
Salary analysts are already predicting that if Jaylen Brown renews his contract with the Boston Celtics, he will sign a five-year, $295 million contract. Isn't it surprising that Jaylen Brown might be like this if his salary contract is renewed? However, that's not all, in theory, Jaylen Brown's next contract has a chance to exceed $300 million.
Based on the NBA's growth trend in salary caps over the past few years, if a 10% increase in salary caps is assumed in the 2024-25 season, the projected salary caps for NBA teams will reach $149.6 million. In this case, Jaylen Brown will be able to take advantage of the "Designated Veteran Player Extension" clause to secure a large contract with a starting salary of 35% and an 8% annual increase.
The starting salary is 149.6 million multiplied by 35%, which equals 52.36 million US dollars. Based on an 8% growth rate, the total salary for five years is 52.36 million + 56.55 million + 60.74 million + 64.93 million + 69.12 million, for a total of 304 million US dollars in five years. At this time, some fans may ask, what if the Celtics do not renew the contract with Jaylen Brown?
In fact, as long as the conditions of the "Designated Veteran Player Extension" clause are met, not only Jaylen Brown, but other players can also receive similar salaries. Conditions include:
(1) The player has played in the NBA for 7-9 years and has not transferred during this time, or the transfer is during the rookie contract period;
(2) You have only a maximum of two years left on your current contract, or become a free agent.
Once the above two conditions are met, plus any of the following, the clause can be activated:
(1) be named to the All-NBA Team at least twice in this season or the past three seasons;
(2) has been named the best defensive player at least twice in this season or the past three seasons;
(3) Has been named regular season MVP at least once in the last three seasons.
As long as Jaylen Brown is named to the All-NBA team next season, the clause can be triggered. In the past few years, players like James Harden, Russell Westbrook, John Wall, Stephen Curry, Damian Lillard, Rudy Gobert, Giannis Antetokounmpo, Joel Embiid, Devin Booker, Carl Anthony Towns and Nicolas Jokic have all been awarded super-mega contracts on this clause. In the future, there are still opportunities for players who meet these conditions.
When you see this, you might be surprised at how quickly the NBA has evolved, haven't you? Indeed it is. In the 2003-04 season, LeBron James had just joined the NBA. At the time, the NBA's salary cap was only $43.84 million, while the luxury tax line was $54.55 million. The salaries of top-paid players are: $10.96 million (25%), $13.15 million (30%), $15.34 million (35%). The salary of a middle-class player is: $4.91 million. The salaries of base-salaried players are: $360,000 (less than one year of service), $560,000 (full year), $630,000 (full two years), $1.07 million (more than ten years).
Fast forward to the 2023-24 season, twenty years from now. The NBA's salary cap soared to $130 million, while the luxury tax line was as high as $165 million. The salaries of the top paid players are: $34 million (25%), $40.8 million (30%), and $47.6 million (35%). The salary of a middle-class player is: $12.4 million. The salaries of base-salary players are: $1.11 million (less than one year of service), $1.8 million (full year), $2.01 million (full two years), $3.19 million (more than ten years).
Next season, there will be 18 players with salaries of more than $40 million. Behind this salary increase is the NBA's growing influence around the world and the NBA's huge television contracts with broadcasters. These contracts generate huge amounts of revenue for the NBA, part of which is used to pay players' salaries. As the NBA continues to expand in the global market, player salaries are expected to continue to grow.
However, high player salaries have also worried some that this growth is unsustainable. Whether that growth will continue, and what it means for the NBA's long-term health, is something to watch. At the same time, contracts between players and teams have become more complex, including a range of incentive clauses and protections. This means that teams and players need to consider more factors when negotiating contracts to ensure they get the best deal in a highly competitive environment.
Overall, the increase in player salaries in the NBA reflects the prosperity of this league. However, it also creates new challenges for team management and players as they need to make informed decisions in an ever-changing environment.