Jalen Brunson’s $113 million Knicks’ pay cut puts a price on happiness

Jalen Brunson is leaving a lot of money on the table to help the New York Knicks build the best team possible. Brunson and the Knicks agreed on a four-year, $156 million extension on Friday, according to ESPN’s Adrian Wojnarowski. Brunson could have signed for an additional $113 million if he waited until next year to sign the extension. The point guard was eligible to sign a five-year, $270 million extension after the 2024-2025 season.

Brunson’s deal includes a player option on the fourth year, giving him an opportunity to extend at a bigger number a few years from now. Still, there are no guarantees Brunson will still be performing at a max player level at that point, and the Knicks aren’t beholden to offering it.

This is an unprecedented gesture for a star player, and a way for the Knicks to continue stocking the team with talent in the second apron era.

Brunson is sacrificing tens of millions of dollars per year to give the Knicks team-building flexibility. This graphic from Wojnarowski lays out the deal Brunson accepted vs. the one he could have signed next year.

“One big motivating factor for Brunson in all of this was he wanted to put the Knicks in the best position possible to build out this roster as they chase a championship,” reporter Ian Begley said after Brunson signed his extension. As contenders let go for good players to avoid the penalties coming from the dreaded second apron of the luxury tax under the league’s new CBA, there’s no way to frame Brunson’s deal as anything other than a massive gift to the Knicks.

Credit the Knicks for building an environment where Brunson feels happy and valued. The Knicks completed their dream of fully reuniting Brunson’s college teammates this year by trading five first round draft picks for Mikal Bridges. The Knicks’ Villanova Four — Brunson, Bridges, Josh Hart, and Donte DiVincenzo — won big at the college level with national championships in 2016 and 2018, and now have the chance to do the same in the NBA.

There’s the potential for Brunson to sign a super max contract with the Knicks once he hits 10 years of service in the NBA. It sounds good in theory, and there’s no doubt (to borrow Brunson’s favorite phrase) that the vibes are immaculate right now. Just keep in mind that a lot can happen in a few years time.

Jalen Brunson can decline his player option in 2028 and re-sign for up to five years, projected at $418 million.

That is the projected 35% max for players with 10 years of service in 2028.

He could alternatively opt out in 2028 and extend for up to four years, $254 million.

— Yossi Gozlan (@YossiGozlan) July 12, 2024

Isaiah Thomas once told the Boston Celtics to “bring the Brinks trucks out” as he anticipated a max extension offer from the team. Instead, Thomas played through a hip injury that was worse than originally anticipated, got traded for Kyrie Irving, and never saw the big money he thought he was getting. Read our timeline of how Thomas went from a max player to a minimum player from 2019.

The similarity between Brunson and Thomas and is that they are both electric scoring guards of small stature. Of course, Brunson will earn more in the first year of this contract than Thomas did his entire career (Thomas made $34.7 million in the NBA, according to basketball-reference).

Brunson turns 28 years old in August. He was No. 10 in the NBA in total minutes this past season under head coach Tom Thibodeau.

Here’s the statement from the Knicks on Brunson’s deal, where president Leon Rose noted his “dedication and passion” for the organization and city.

In statement, NYK president Leon Rose says of Jalen Brunson: “Jalen signing his extension to remain with the Knicks for the long-term shows the dedication and passion he has for the organization, the fans and this city.” Full press release on Brunson’s 4 year, $156M extension: pic.twitter.com/krSfJubAhW

— Ian Begley (@IanBegley) July 12, 2024

Wojnarowski noted that Brunson was influenced by team-friendly deals accepted by Tom Brady, Derek Jeter, and Patrick Mahomes to help their organizations maintain championship-level teams. The fact that Brunson is the son of former NBA player Rick Brunson probably helps, too. He wasn’t hurting for money growing up. The elder Brunson is also on the Knicks’ staff as an assistant coach.

It feels like Brunson wouldn’t have taken this deal with the second apron penalties looming in the new CBA. How does the players’ union feel about Brunson’s new $100+ million haircut? A more punitive luxury tax was meant to ensure parity around the league, not have players take massive pay cuts to help owners.

Either way, Brunson has his dream situation in New York, playing a starring role for a great team while surrounded by his former college teammates. He wasn’t going to get this type of personal fulfillment anywhere else. What’s that worth? For Brunson, it’s about $113 million.