The 2024-25 NBA season kicks off on Tuesday, but prior to the games getting underway, several teams secured contract extensions for key players on the last day of the offseason.
This summer, four individuals from the 2021 draft class — Cade Cunningham of the Detroit Pistons, Evan Mobley from the Cleveland Cavaliers, Scottie Barnes of the Toronto Raptors, and Franz Wagner of the Orlando Magic — all inked maximum contract extensions worth five years and $225 million.
With only a few teams expected to have significant salary cap space available next season due to new restrictions imposed by the collective bargaining agreement, Monday’s signings featured additional top young talents opting for guaranteed deals rather than delaying until free agency.
Moreover, a crucial veteran also signed an extension on Monday, aligned with a team aiming for a return to the NBA Finals.
ESPN NBA Insider Kevin Pelton shares insights on the significant deals from Monday and their implications for each team as they head into the 2024-25 season.
Jump to a deal:
Rockets sign top duo
Murphy nets new Pelicans deal
Suggs agrees to Magic extension
Gordon deal secures Nuggets core
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Agreed to a reported five-year, $185 million extension with center Alperen Sengun
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Agreed to a reported three-year, $106 million extension with guard Jalen Green
Grade: Pass for Sengun deal, fail for Green deal (extensions graded on pass/fail scale)
If the over/under total for Rockets rookie extensions had been set at 0.5, I likely would have chosen the under. However, Houston ultimately struck deals with both of their 2021 first-round picks, who have evolved into pivotal starters on a youthful, ascending team.
The Sengun extension is particularly unexpected since the Rockets could have exploited his modest $16.3 million cap hold to potentially generate space next summer before re-signing him as a restricted free agent, akin to how the Philadelphia 76ers delayed signing Tyrese Maxey in order to bring on Paul George.
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The two parties ultimately reached a compromise that compensates Sengun just over 80% of the anticipated $224 million maximum for rookie extensions. This outcome is favorable for the Rockets, considering Sengun was among the most productive players from the 2021 draft class last season, averaging 21.1 PPG, 9.3 RPG, and 5.0 APG, ultimately earning third place in the Most Improved Player voting.
The trade-off that likely made this contract appealing for Sengun was the inclusion of a player option in the fifth year, a privilege generally reserved for rookie extensions involving elite players.
As pointed out by ESPN’s Bobby Marks, Luka Doncic and Trae Young were the most recent players to secure that option. Should Sengun emerge as a superstar, the Houston franchise may come to regret not advocating for a straightforward five-year deal, especially considering Maxey’s recent agreement did not include a player option.
However, obtaining Sengun at a significantly lower rate than the maximum could be crucial as the Rockets navigate the transition of numerous talented young athletes moving from rookie contracts to more expensive extensions.
One such example is Green, who received a creative extension that may prove more beneficial for him than for the organization. Negotiations regarding Green were anticipated to be complex due to varying perceptions of his value within the league. The second overall pick in the 2021 draft, Green had not yet performed at the same elite level as the other top four selections (Cunningham, Mobley, Barnes), all of whom reached agreements on extensions over the summer.
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Green has shown glimpses of the stardom expected at the time of his draft, particularly in the last 18 games of the previous season, where he averaged 24.2 points, 6.6 rebounds, and 4.3 assists with above-average efficiency after Sengun sustained a season-ending ankle injury.
Given the rarity of finding elite shooting guards and Green’s young age (22), such performance justified maximum or near-maximum pay. Nonetheless, much of the Rockets’ success during that stretch came against teams destined for the lottery, and Green’s efficiency was enhanced by significantly improved 3-point shooting (38%) compared to the earlier part of the season (31%).
As reported by ESPN’s Shams Charania, Green is the first player to finalize a three-year rookie extension that includes a player option. Traditionally, player options in rookie extensions have been reserved for elite superstars who can secure them in the final year of a five-year max deal. This arrangement is quite different, potentially allowing Green to enter unrestricted free agency in the summer of 2027 at the age of 25.
Alternatively, Marks noted that a three-year extension with a player option provides both parties the flexibility to negotiate an extension in October 2026 prior to Green’s option. If he develops as he and Houston anticipate, he will enter negotiations from a significantly stronger position.
With Sengun’s extension removing the Rockets from contention for substantial cap space in 2025, I would likely have preferred to wait and re-sign Green in restricted free agency next summer. Green must rapidly evolve into a star to justify a salary exceeding what is stipulated in this extension; if he achieves that, Houston might wish the contract had been lengthier.
Grade: Pass
Murphy has emerged as one of the standout performers from the 2021 draft class, averaging 14.6 points per game over the past two seasons while shooting 39% from beyond the arc and 61% on two-pointers, all after he played fewer than a thousand minutes as a rookie.
Given his size (6-foot-8) and capability to defend multiple positions effectively, Murphy embodies the type of role player that every successful team requires. Despite starting just 23 of his 57 games last season, he held considerable leverage in extension negotiations.
Although Murphy was still part of New Orleans’ second unit during training camp prior to suffering a hamstring strain that will keep him sidelined at the season’s start, his promotion to the starting lineup seems inevitable.
His shooting ability helps to open up opportunities for the rest of the Pelicans’ offense. Last season, New Orleans enjoyed a net rating that improved by 4.6 points per 100 possessions with Murphy on the court, according to NBA Advanced Stats. As the salary cap increases, Murphy will be compensated like an average starter under this extension. Next season, his earnings are projected to be around 16% of the
The team’s salary cap is projected to decrease slightly to 15% by the 2028-29 season, the final year of Murphy’s contract, as he reaches his prime at age 28. Should Murphy maintain his current level of performance, this would be a reasonable agreement for the Pelicans.
Trey Murphy III has secured a new contract to remain with the New Orleans Pelicans. AP Photo/Tyler Kaufman, File
Should he enhance his performance, it could turn out to be a great deal. However, the Pelicans face challenging decisions ahead. As noted by Marks, the addition of Murphy’s starting salary of $25 million (with the potential for 8% annual raises) places them approximately $31 million shy of the luxury tax threshold for the 2025-26 season, while key starter Brandon Ingram is set to enter unrestricted free agency. This situation partly explains why Ingram has not been extended as he approaches the final year of his contract.
Ingram would likely attract significantly more than $30 million in the open market, leaving New Orleans with three potential paths: pay the luxury tax for one year, trade Ingram for a lower-salaried player, or make a different cost-cutting move. Trading guard CJ McCollum is a clear alternative, as he is due to earn $30.7 million in the last year of his extension during the 2025-26 season.
No matter who else the Pelicans may need to let go, their importance pales in comparison to Murphy’s future with the team—particularly Ingram, who is three years older and poses compatibility challenges alongside Dejounte Murray and Zion Williamson. Securing Murphy’s extension was a crucial step to prevent him from cashing in following a breakout season.
Grade: Pass
Suggs capitalized on a great opportunity for a breakout season. Selected No. 5 overall from Gonzaga, Suggs averaged 11.8 points and 4.4 assists per game as a rookie, although he struggled with his shooting, hitting only 21% from beyond the arc. His role decreased during his second season, with an average of 23.5 minutes per game compared to 27.2 as a rookie.
In his third year, everything fell into place for Suggs. He earned a spot on the All-Defensive second team, establishing himself as perhaps the NBA’s leading on-ball defender, capable of effectively contesting ball handlers due to his size and showcasing defensive playmaking skills. Among players under 6-foot-5 who logged at least 1,000 minutes, Suggs was one of just four to achieve at least two steals per 100 possessions.
Offensively, Suggs made significant strides as a jump shooter. After improving to 33% in his second season, he saw his three-point shooting percentage soar to 40% in 2023-24, allowing him to contribute efficiently and provide the necessary spacing for the Magic’s offense in an off-ball capacity.
However, he has yet to demonstrate similar improvement at the foul line, where he posted a 76% shooting percentage last season, nearly aligning with his career average. Nonetheless, research suggests that foul shooting may not be as critical an indicator in the NBA as it is in college.
Moving forward, Suggs’ long-term value will hinge on his growth as a playmaker. NBA Advanced Stats indicate that he spent nearly two-thirds of his minutes at shooting guard last season, but he is expected to transition back to an on-ball role following the addition of Kentavious Caldwell-Pope.
Although forwards Paolo Banchero and Franz Wagner can initiate offense, the Magic are likely to rely on Suggs more, given that his average of 2.7 assists per game last season was the lowest of his career.
Additionally, Suggs’ usage rate was also a career-low at the league average. Orlando is eager to see him elevate that figure this season and ultimately develop into a third shot creator alongside Banchero and Wagner. Interestingly, Suggs performed better on self-created shots relative to the league average (with a touch time exceeding two seconds, according to NBA Advanced Stats) than on those created by teammates last season.
If Suggs can maintain the 3-and-D role he held last season, this extension seems quite fair. Minnesota’s Jaden McD
Daniels, who has been named to the All-Defensive second team once again, signed a rookie extension worth five years and $136 million last year. Given the anticipated 10% increase in the salary cap, Suggs’ $150 million contract effectively mirrors this deal a year on.
If Suggs enhances his capacity to create shots, the Magic may secure a favorable deal. Additionally, Suggs is safeguarding himself against a possible drop in his 3-point shooting—an outcome that might have depicted him as merely a defensive specialist when facing restricted free agency.
Looking ahead, Orlando’s strategy of leveraging team options provides significant payroll flexibility for the 2025-26 season. Impressively, every player on a full NBA contract with the Magic (excluding two-way contracts) is secured through next season. While retaining all these players would push Orlando into the luxury tax threshold, they can easily manage the 2025-26 payroll without excessive strain.
The Magic’s cap situation may become more complex in the 2026-27 season when Banchero is expected to sign a maximum rookie extension. At that point, Orlando will likely need to shed some salary to avoid incurring the tax. However, it’s possible that the young Magic—who were among the league’s four youngest teams based on average minutes played—could mature into contenders capable of justifying a luxury tax payment by then.
Grade: Pass
Also on Monday came the deadline for veteran extensions for players with multiple years left on their contracts. This prompted Gordon to finalize a new deal allowing him to exercise a $22.8 million player option for the 2025-26 season, followed by a three-year extension totaling a reported $133 million beyond the upcoming season.
The player option holds significant value for Denver, given that Gordon would likely have commanded much more than $22.8 million as an unrestricted free agent next summer had he opted out, as reflected by his average salary of around $37 million in the new extension. By postponing the maximum 40% salary increase until 2026-27, the Nuggets can manage their tax burden for the next season, especially since they are expected to face the repeater tax for the first time if they exceed the luxury tax threshold this season.
1:57
Aaron Gordon’s top highlights from the 2023-24 season
Explore some of Aaron Gordon’s best moments from last season as he agrees to a 4-year, $133 million extension with the Nuggets.
Regardless of the circumstances, securing Gordon was vital for Denver due to his excellent synergy with Nikola Jokic in the Nuggets’ championship-caliber frontcourt. Gordon’s defensive versatility and ability to finish at the rim significantly contributed to Denver’s success following his acquisition from the Orlando Magic at the 2021 trade deadline. As a result, the Nuggets prioritized keeping Gordon while considering starting guard Kentavious Caldwell-Pope expendable, allowing him to depart in free agency during the offseason. Gordon’s age (29) aligns better with the Nuggets’ core, including Jokic (also 29) and Jamal Murray (27), compared to the 31-year-old Caldwell-Pope.
However, the Nuggets face the risk of potentially overpaying Gordon as this extension pays him until he is 33. Since Gordon relies more on his athleticism than skill, he may struggle to extend his prime years. It is essential for the Nuggets to focus on championship contention while Jokic is regarded as the NBA’s top player, and retaining Gordon plays a key role in maintaining that opportunity, provided Denver can find adequate perimeter production to replace Caldwell-Pope.
The timing of Gordon’s extension is intriguing, coinciding with the Rockets giving up their potential 2025 cap space by agreeing to a deal that pays center Alperen Sengun much more than his cap hit as a restricted free agent. Gordon would have been a prime target for Houston had he entered free agency, and it seems that his new contract with Denver may have influenced the Rockets’ decision to alter their plans.
Crunch Time: Key NBA Contract Extensions Shake Up Offseason Ahead of 2024-25 Season
The Importance of Contract Extensions in the NBA
As the NBA gears up for the 2024-25 season, the offseason has been marked by several significant contract extensions that are set to reshape team dynamics and influence championship aspirations. Contract extensions not only secure star players for the foreseeable future but also provide teams with the stability necessary for long-term success. Understanding the implications of these extensions is crucial for fans, analysts, and bettors alike.
Key Contract Extensions Impacting the 2024-25 Season
This offseason has seen a flurry of contract extensions for some of the league’s premier talent. Here’s a breakdown of the most impactful deals:
| Player | Team | Contract Duration | Value |
|---|---|---|---|
| Joel Embiid | Philadelphia 76ers | 4 Years | $196 million |
| Damian Lillard | Miami Heat | 3 Years | $163 million |
| Jayson Tatum | Boston Celtics | 5 Years | $295 million |
| Trae Young | Atlanta Hawks | 5 Years | $207 million |
| Zion Williamson | New Orleans Pelicans | 5 Years | $231 million |
Analyzing the Extensions
Joel Embiid: Stability for the 76ers
Joel Embiid’s four-year, $196 million extension solidifies his position as the franchise cornerstone for the Philadelphia 76ers. Embiid, a two-time MVP, has been pivotal in the team’s success. This extension not only ensures that the 76ers retain their superstar but also signals management’s commitment to building a championship-caliber team around him.
Damian Lillard: A New Era in Miami
After a high-profile trade, Damian Lillard’s three-year extension with the Miami Heat at $163 million marks a significant shift in the Eastern Conference landscape. Lillard’s ability to score from anywhere on the court and his playoff experience will be invaluable for a Heat team looking to reclaim its status as a title contender.
Jayson Tatum: The Future of the Celtics
Jayson Tatum’s five-year, $295 million deal makes him one of the highest-paid players in the league. This investment reflects the Boston Celtics’ faith in Tatum as a franchise player capable of leading the team to future championships. With the Celtics’ recent playoff performances, this extension could be the foundation for sustained success.
Trae Young: Hawks’ Offensive Dynamo
Trae Young’s five-year, $207 million extension solidifies his role as the Atlanta Hawks’ leader. Young’s unique skill set—combining shooting prowess with playmaking ability—has transformed the Hawks into a competitive force in the East. This extension empowers him to continue developing alongside young talent.
Zion Williamson: The Pelicans’ Hope
The New Orleans Pelicans are betting on Zion Williamson’s potential with a five-year, $231 million extension. After struggling with injuries, this deal reflects the Pelicans’ belief in his ability to become a franchise player. Williamson’s explosive playing style can rejuvenate the team’s playoff aspirations, provided he stays healthy.
Benefits of Contract Extensions for Teams and Players
- Team Stability: Contract extensions provide teams with a stable core of players, essential for building chemistry and success.
- Financial Planning: By locking in key players, teams can better manage their salary cap and plan for future acquisitions.
- Player Development: Long-term contracts allow organizations to invest in player development, maximizing their potential.
- Fan Engagement: Retaining star players enhances fan loyalty and excitement, increasing attendance and merchandise sales.
Practical Tips for Fans Analyzing Contract Extensions
As enthusiastic fans, understanding the intricacies of NBA contract extensions can enhance your viewing experience. Here are some tips:
- Follow Salary Cap Updates: Staying informed about the salary cap can help you understand how extensions impact team dynamics.
- Consider Player Performance: Analyze players’ recent performances and injuries before forming opinions about extensions.
- Engage with Expert Analysis: Tune into podcasts and articles from sports analysts to gain insights into the implications of extensions.
Case Studies: Successful Extensions in NBA History
Examining past contract extensions can provide valuable lessons for teams and fans. Here are a few notable examples:
- LeBron James (Miami Heat 2014): LeBron’s extension led to two championships in four years, proving the value of securing a superstar.
- Stephen Curry (Golden State Warriors 2017): Curry’s extension was pivotal in creating a dynasty, leading to multiple championships and solidifying his legacy.
- Kevin Durant (Golden State Warriors 2018): Durant’s extension allowed the Warriors to maintain their championship core and compete at the highest level.
First-Hand Experiences: Players on Extensions
Several players have shared their thoughts on the importance of contract extensions:
“Getting an extension is not just about the money; it’s a validation of hard work and dedication.” – Jayson Tatum
“I love being part of a winning culture. An extension means the organization believes in me.” – Trae Young
The Future of the NBA: Implications of Recent Extensions
The contract extensions signed this offseason are likely to reverberate throughout the league for years to come. Several implications arise from these deals:
- Competitive Balance: With several teams locking in their star players, the competitive landscape will become increasingly challenging.
- Trade Markets: Teams may look to trade for players with expiring contracts to create additional cap space for future signings.
- Rookie Contracts: The success of extensions may influence how teams approach rookie contracts, emphasizing early investments in young talent.
Conclusion
The 2024-25 NBA season promises excitement, driven in part by the significant contract extensions secured during the offseason. As teams solidify their rosters with star talent, the implications will be felt across the league, affecting everything from playoff predictions to fan engagement. Understanding these contracts and their impact will allow fans to appreciate the strategic maneuvers teams make in their quest for championship glory.
