The moment happened at Lincoln Park in Queens on Tuesday, and was shared by a Knicks fan on his X account. FollowAt that moment, the streetball announcer spoke to Jalen Brunson, who was sitting courtside.
“If you wait until 2025, it’s $300,” he shouted into the microphone.
The other announcer interjected.
“He’s not panicking, he’s got time. … I know how to count, JB. 150 or 300?”
The numbers were slightly incorrect and more complicated than presented, but the announcer’s point was easy to follow.
Starting Friday, Brunson will be eligible to sign a four-year, max extension worth $156.5 million.
If they wait until free agency next summer instead, Brunson could sign for about $270 million over five years.
In other words, $150 or $300?
On the surface, it’s a no-brainer.
An NBA agent said in a recent text message that it would be “crazy” if Brunson agreed to a contract extension.
But there are nuances and long-term calculations to take into account.
As sources said during last season (before Brunson’s star power rose in the playoffs), a contract extension is fully on the table.
Since then, there have been no reports or stories to suggest that Branson has backed away from the idea.
As The Washington Post explained in April, with the contract in place, it’s safe, and it’s hard to imagine a better place for Branson than New York.
His father is an assistant coach, his longtime family friend/agent is the company president, his college buddy is a teammate and the whole town is crazy about the point guard.
No Knicks player has had a higher approval rating since Patrick Ewing’s honeymoon days.
There’s also the idea, though largely hypothetical at this point, that Brunson signing at a discount would give the Knicks flexibility to build a championship team.
And it’s impossible to put a price on the legacy, or long-term value, associated with breaking New York City’s 50-plus year title drought, especially with Brunson’s play. and His financial sacrifice paved the way.
“What I like about him is he’s all about the team,” Knicks head coach Tom Thibodeau has echoed about Brunson. “All he cares about is winning.”
But there are also contracts with significantly lower salaries, such as the one Carmelo Anthony accepted in 2014 ($5 million less than the maximum of $129 million) and the one LeBron James agreed to this month ($3 million less than the maximum of $104 million), as well as the extension Brunson must sign.
His average annual salary during the extension, which begins in the 2025-26 season, will be $39.1 million.
That’s $3.9 million less than the average annual salary of Brunson’s role-playing teammate, OG Anunoby.
If he were to forego a contract extension and sign as a free agent, Brunson would make an average annual salary of approximately $54 million.
It’s a big difference.
But again, this is not the whole picture of the financial situation.
Signing a contract extension is both a safe move and a bet on himself.
Assuming it includes an opt-out that would allow Brunson to become a free agent in 2028, the point guard would be eligible for the veteran max starting at 35% of the salary cap for that year, rather than the usual 30% of the maximum salary cap he would sign in 2025.
That’s the perk of being in the league for at least 10 years (Brunson was drafted in 2018).
Under these circumstances, the difference in total salary from 2025 to 2030 due to the extension would be just $6 million less, according to The Athletic’s calculations.
But the difference would be even larger if Brunson signs consecutive max contracts in free agency (Brunson would earn an estimated $560 million from 2025-2032, far more than he would earn from a contract extension through free agency).
So whether it’s $150, $300 or a figure that’s projected to exceed $500 million in the long run, an extension with Brunson would be a lucrative deal for the team and another big assist from the All-NBA point guard.
Starting Friday, the Knicks can formally offer Brunson and expect him to sign.
