In a largely unprecedented financial concession to give roster flexibility to a contending franchise, New York Knicks All-NBA guard Jalen Brunson has agreed to a four-year, $156.5 million contract extension -- $113 million less guaranteed than he is eligible to sign for a year from now -- his agent, Sam Rose of CAA, told ESPN on Friday.
The deal, which begins in 2025-26 and will cost Brunson $37.1 million over the next three years, comes with a fourth-year player option, Rose said, and that would set up Brunson to recoup the $113 million on a four-year, $323 million maximum extension in 2028 or a new five-year, $418 million deal in 2029.
Brunson, 27, became eligible to negotiate and sign the maximum extension Friday.
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While there is an inherent risk of injury and unforeseen complications that come with Brunson's decision to push back his most lucrative NBA paydays, his priority remains to maximize the prime of his career with the franchise's most talented and deepest roster since the 1990s.
The repercussions of Brunson choosing the four-year, $156.5 million max deal over the five-year, $269.1 million deal in 2025 are massive for the Knicks' ability to keep this team together and continue making roster moves to close the gap on a championship. Brunson's deal keeps the Knicks out of the second-apron level of the salary cap, a punitive threshold that severely limits a team's ability to make trades, sign players and use draft picks.
Brunson's study of championship organizations and franchise stars -- Patrick Mahomes' Kansas City Chiefs, the Tom Brady New England Patriots and the Derek Jeter New York Yankees -- gave him a blueprint for MVP-level players who structured contracts to give their teams the best chances at 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 league's most transformative acquisitions of the past decade. After starting his career as a backup point guard with the Dallas Mavericks, Brunson has blossomed into one of the NBA's most impactful players and leaders. Brunson had his finest NBA season in 2023-24, earning All-NBA honors and finishing top five in the MVP voting. He averaged 28.7 points per game and scored or assisted on a franchise-record 3,481 points. Brunson, who had 11 40-point games in the regular season, became the first Knicks player with 40 points and five assists in four straight playoff games, according to ESPN Stats & Information.
The Knicks presumably became better -- and inarguably more expensive -- this offseason. New York signed OG Anunoby to a five-year, $212.5 million deal and traded for Brooklyn Nets forward Mikal Bridges and the two years, $48 million left on his contract.
Brunson's ties to the Knicks are deep and reflect his faith in the organization. Knicks president of basketball operations Leon Rose had been Brunson's agent prior to joining the team in 2020. Brunson's father, Rick, is a Knicks assistant coach and was a longtime client of Rose's in his agent days. The Knicks have surrounded Brunson with a starry cast of his former national championship teammates at Villanova to create 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.
ESPN's Bobby Marks contributed to this report.