Jalen Brunson, Knicks agree to four-year extension: source

LAS VEGAS — Jalen Brunson is signing a long-term contract with the New York Knicks.

Brunson and the organization have agreed to a four-year, $156.5 million extension, a league source confirmed to The AthleticThe contract will run through the 2025-26 season and will include a fourth-year player option. ESPN was first to report the news.

The All-Star point guard has been mulling the possibility of an extension for months, though the Knicks weren’t allowed to offer him one until July 12, exactly two years after he signed his current contract with the team. But even though Brunson technically hadn’t seen the deal, he knew what was coming. His upcoming new contract is the largest extension the Knicks could allow.

While New York offered the maximum possible extension, re-signing wasn’t the most lucrative route Brunson could have taken. If he had waited until 2025 to sign a new contract, he would have been eligible for a max deal, projected to be worth $269 million over five years. But other circumstances encouraged Brunson to opt for a deal that would guarantee him about $113 million less.

As The Athletic As detailed earlier this week, Brunson focused on two factors: safety and winning.

The extension is set at nine figures today. In the meantime, accepting less money now will help the Knicks stay under the second apron in 2025-26.

Taking less money doesn’t mean saving money for the owner. The new collective bargaining agreement is more restrictive than any in league history. Now, becoming too expensive deprives teams of resources to build teams.

Brunson’s lower annual salary could help the Knicks get below the second cap, especially in 2025-26, when he’s set to hit $207.8 million. If the Knicks were to exceed $207.8 million in payroll, they would lose access to the mid-level exception, trade exceptions and be unable to make various types of trades. An organization with championship ambitions wouldn’t have as many ways to improve.

The extension is another dramatic move for the Knicks, who traded five first-round picks, including four unprotected, for Mikal Bridges earlier this offseason.

Brunson, 27, made his first All-Star team in 2023-24, but his accolades didn’t stop there. He finished fifth in MVP voting and was named to the All-NBA Second Team after helping the Knicks to 50 wins and second place in the Eastern Conference. Due to a series of injuries, New York lost to the Indiana Pacers in the second round of the playoffs.

Brunson averaged 28.7 points, 3.6 rebounds and 6.7 assists. He finished fourth in the NBA in points scored.

(Photo by Jalen Brunson: Nathaniel S. Butler/NBAE via Getty Images)