REFERENCES AT THE END OF THIS POST
I'm fascinated by the salary landscape of my favorite sports and why I've been writing the recent articles centered around the enormous growth of these salaries and the impact and implications.
Today's article was triggered by Anthony Davis' contract extension and it's been an offseason for the NBA with these escalating salaries, so wanted to add it to my list of articles.
But it was Jaylen Brown's HUGE recent deal that really caught my attention and I was definitely not alone.
Anthony Davis: A Laker for the Long Haul
The Lakers have been busy this offseason adding new pieces, and now team cornerstone Anthony Davis is staying put even longer. Davis and the Lakers have reportedly agreed to a three-year, $186 million max extension, according to ESPN’s Adrian Wojnarowski.
The X/Tweet:
https://twitter.com/wojespn/status/1687551673051361280?s=20
- wojespn
The deal, which reportedly has the largest annual extension in NBA history at $62 million per season, would lock Davis up through 2028. Davis averaged 25.9 points and 12.5 rebounds last season for the Lakers, who reached the Western Conference Finals before falling to the eventual NBA champion Denver Nuggets in a four-game sweep.
Los Angeles has completed several deals this offseason, re-signing D’Angelo Russell, Austin Reaves and Rui Hachimura to new contracts while loading up on a refreshed supporting cast. LeBron James also confirmed that he would be returning for his 21st season in the NBA.
Celtics' Jaylen Brown’s Contract: A Game-Changer for NBA Salaries
The NBA has seen an unprecedented escalation in players' contracts, with Boston Celtics guard, Jaylen Brown, making headlines with his massive $304 million deal. The magnitude of this contract caused many a double take, indicating the shifting financial paradigms within the league.
NBA's Financial Health: A Boon for Player Salaries
The trend of increasing salaries is a testament to the robust financial health of the NBA. The collective bargaining agreement ensures players take home a sizable percentage of the basketball-related income each season. As the NBA prospers, so do its players. This positive economic cycle implies that NBA's top tier salaries are on an upward trajectory, with an even steeper incline expected in the near future.
NBA Salary Cap Projections: A Financial Odyssey
The most startling projection lies in the expected growth of the salary cap. Over the last decade, the salary cap has more than doubled and is predicted to follow a similar trajectory in the coming years. This inflation in the cap, coupled with the new Collective Bargaining Agreement stipulating a maximum 10% jump in the cap each season, promises staggering contracts in the future.
Uncertain Future: The Volatility of Cap Growth
But with great growth come great uncertainties. While the potential for accelerated cap growth exists, it's not assured. Lower projections for the cap in the next season might slightly curb the initial excitement. However, the new media rights deal kicking off in the 2025-26 season is expected to be a financial boon for the NBA, likely counterbalancing any previous slower growth.
Past vs Present: The Evolution of NBA Salaries
Looking at the past, it's clear that player salaries have evolved beyond the expectations set by historical peers. Inflation-adjusted earnings of past players pale in comparison to the massive contracts signed today. The salary growth seems set to continue its upward spiral, reshaping the financial landscape of the league.
References:
NBA Salary Cap Explained. Hoopshype.com. Dosh, Kristi.
How the NBA Makes Money: Television, Merchandising, and Tickets. Thebalancesmb.com. Coon, Larry.
The NBA's New Collective Bargaining Agreement. Cbafaq.com.
Effects of the New NBA CBA. Sportsmanagementworldwide.com.
Badenhausen, Kurt.
Media Rights Deals and Sports. Forbes.com.
Five of my previous articles similar to this one:
How Cohen's Big Bucks Semi-Fixes the Mets 2023 Mess on the Fly
@jimmy.adames/how-cohens-big-bucks-semifixes-the-mets-2023-mess-on-the-fly
Major Salary Implications for Rangers and Mets Following Scherzer Trade: A Detailed Look
The Costs and Rewards of the 2023 MLB Draft
@jimmy.adames/the-costs-and-rewards-of-the-2023-mlb-draft
How Revenue Projections Impact the NBA Salary Cap
@jimmy.adames/how-revenue-projections-impact-the-nba-salary-cap
The Evolving Landscape of MLB Salaries: A Balancing Act of Compensation
@jimmy.adames/the-evolving-landscape-of-mlb-salaries-a-balancing-act-of-compensation