Knicks star makes unprecedented decision with contract extension

Knicks star guard Jalen Brunson has agreed to a four-year, $156.5M extension with the organization, as Adrian Wojnarowski of ESPN was first to report.

Brunson’s extension with the Knicks is now official, according to a team press release.

“Jalen signing his extension to remain with the Knicks for the long-term shows the dedication and passion he has for the organization, the fans and this city,” Knicks president Leon Rose said in a statement. “Jalen has often called the Knicks his family and we are beyond proud to have him wear and represent our orange and blue for years to come. Jalen has embraced every challenge since he’s come to New York and has been committed since day one to the vision and plan we set forth for the future of this team.

“Since Jalen joined us two years ago, he has consistently led by example and continues to show a willingness to sacrifice for this organization, his teammates and everyone in the Knicks family.”

As Wojnarowski observes, the deal is a massive financial concession for a contender, since Brunson could have been eligible for a five-year, $269M deal next offseason. By taking this deal, Brunson is allowing the Knicks to maintain some spending power to keep a contender core — highlighted by Brunson, Julius Randle, OG Anunoby, Mikal Bridges, Josh Hart and more — together for at least the next few seasons.

It’s an unprecedented move for the All-Star guard who finished fifth in MVP voting last season. The deal does cost Brunson $37.1M over the next three years, but there’s a way for the Villanova product to recoup the value he’s sacrificing in the short term down the line. Brunson’s deal includes a fourth-year player option. He could sign a four-year, $323M extension in 2028 or sign a new, five-year, $418M deal in 2029.

The Knicks signaled their belief in this being a championship core when they traded multiple first-round picks to acquire Bridges earlier this summer. Bridges is only under contract for two more seasons at a modest AAV of $24.1M over those two seasons. With Brunson taking this short-term pay cut, the Knicks have more flexibility to re-up Bridges for the long term. Bridges is eligible for a four-year, $156M deal next offseason, which would be another pay cut to help keep this Knicks team together.

This move by Brunson also allows the Knicks to duck the second apron in the first year of his extension, thereby allowing them to dodge the restrictive penalties that would have followed.

According to Fred Katz of The Athletic, Brunson will receive a 50% advance on his salary to begin seasons.

Brunson exploded onto the scene over the past two seasons with New York, averaging 26.5 points and 6.5 assists while shooting 48.4% from the field and 37.3% from beyond the arc during that time. His two seasons have also ushered in some of the most successful seasons in recent Knicks history. The Knicks’ .610 win percentage last season has only been topped once since 2000 — in 2012-13.