Shai is quickly taking over the basketball world! Just yesterday, he signed a four-year supermax extension with the Oklahoma City Thunder. The blockbuster agreement comes at a time when the league is undergoing seismic shifts over player salary caps. It very likely signals a new direction in contract negotiations. The maximum salary cap for the 2024-25 season currently stands at $141 million. This extension is a reminder, however, of just how consolidated—and financially powerful—NBA franchises have become.
That supermax extension will start at an eye-popping $63.7 million in the 2027-28 season. By the end of the contract it will increase to a jaw dropping $79 million, ushering in a new golden age for NBA player salaries. Combined with Gilgeous-Alexander’s agreement, the move would represent a significant turning point for the league. He becomes the first player on record to set the stage for future contracts that will go beyond the $1 million per game barrier.
The Evolution of NBA Salary Caps
The NBA’s overall business model has shifted drastically in the last ten years. A decade ago, the league’s salary cap was under $63 million—roughly $85 million in today’s dollars. With the recent revenue increases, projections show that the NBA salary cap will go over $150 million for the first time next year. This growth is a result of new revenue pouring in, along with unprecedented interest in professional basketball, here at home and around the world.
The original supemax contract tier was created through the 2017 collective bargaining agreement. This new flexibility has significantly altered the landscape of how teams pay for their all-stars. The first supermax, Stephen Curry, signed one for the 2017-18 season, starting at $34.7 million. This agreement has set a precedent for future contracts, allowing elite players to command substantial salaries based on their contributions to their teams.
Analysts are salivating over the prospect of a skyrocketing salary cap. They project that figure to more than double, surpassing $300 million by the 2033-34 season. This potential growth opens up new avenues for players entering the league, particularly recent draftees like Jalen Williams, Chet Holmgren, Paolo Banchero, Victor Wembanyama, and Amen Thompson. The cumulative impact of these young stars is that many are likely to sign contracts with annual values in excess of $100 million.
Future Supermax Candidates
As Gilgeous-Alexander redefines what people should expect from contracts, he’s opened the door for other emerging talents to do the same. Other players like Anthony Edwards and Tyrese Haliburton are strong contenders for supermax qualification from the 2020 draft class. As a result, their performances have created sizable hype around them, setting them up for big pay days in the next few months.
Beyond high-priced newcomers, experienced veterans such as Devin Booker further complicate this emerging salary storyline. They are eligible to sign much shorter extensions that are potentially up to $145 million. It’s a perfect example of how the league’s changing fiscal environment is benefiting entrenched players to the max.
NBA teams collectively spent $5.65 billion on salaries and luxury tax payments last season, underscoring their willingness to invest heavily in talent acquisition. The financial picture is changing to get in line with these enormous outlays, as franchises understand how crucial it is to hang onto those top-level performers.
Implications for Player Salaries
Shai Gilgeous-Alexander’s historic max extension sets the stage for some big, near future league-wide supplementary contracts. He raises the bar for future player contracts. Players who sign supermax deals after him are projected to break the $82 million barrier, culminating in a jaw-dropping $1 million per game by the end of their deals.
This transformation in player salaries has sparked discussions about the implications of high earnings on team dynamics and competitive balance. As ESPN NBA analyst Kevin Pelton noted recently, here’s what’s really interesting. He explained that under a free enterprise system without salary caps, the Cavaliers would have no problem paying James $100 million a year. However, such sentiments point to what player salaries will continue to look like as franchises adjust to this new economic reality.
Fans and commentators both have reacted with disbelief at these highly profitable deals. One commentator remarked, “You’re making more than a million dollars tonight, and you’re not even playing?!” This quote succinctly depicts the strangeness of today’s NBA salaries and highlights just how far player wages have progressed.
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