Jalen Brunson, Knicks agree to four-year extension: Source

LAS VEGAS — Jalen Brunson is re-upping with the New York Knicks for the long term.

Brunson and the organization have agreed on a four-year, $156.5 million extension, a league source confirmed to The Athletic. The contract will kick in for the 2025-26 season and will have a player option on the fourth year. ESPN was first with the news.

The All-Star point guard has mulled over the possibility of taking the extension for months, though the Knicks were not allowed to offer it to him until July 12, exactly two years after he signed his current deal with the team. But even if Brunson hadn’t technically seen the agreement, he knew what was coming. His soon-to-be new contract is the largest allowable extension the Knicks could propose.

Though New York offered the most it could in an extension, re-signing now was not the most lucrative path Brunson could have taken. Had he waited until 2025 to ink a new deal, he would have been eligible for a max contract, worth a projected $269 million over five years. But other circumstances encouraged Brunson to opt for an agreement that would guarantee him approximately $113 million less.

As The Athletic detailed earlier this week, Brunson focused on two factors: security and winning.

The extension locks in nine figures today. Meanwhile, agreeing to less money now will help the Knicks’ efforts to remain under the second apron in 2025-26.

Taking less money is not about saving the owner dollars. The new collective bargaining agreement is more restrictive than any other in the league’s history. Now, becoming too expensive rips away team-building resources.

Brunson’s lower annual salary can assist the Knicks in dipping below the second apron, especially in 2025-26 when it projects to be $207.8 million. If the Knicks were to go above $207.8 million in payroll, they would lose access to the midlevel exception, trade exceptions and be unable to make various types of trades. An organization with championship ambitions would not have nearly as many ways to improve.

The extension is yet another splashy move for the Knicks, who traded five first-round picks, including four unprotected ones, for Mikal Bridges at the start of the offseason.

Brunson, 27, made his first All-Star team in 2023-24, though his accolades did not end there. He finished fifth in the MVP voting and made All-NBA Second Team after helping the Knicks to 50 wins and the Eastern Conference’s No. 2 seed. With a slew of injuries, New York lost to the Indiana Pacers in the second round of the playoffs.

Brunson averaged 28.7 points, 3.6 rebounds and 6.7 assists. He finished fourth in the NBA in scoring.

(Photo of Jalen Brunson: Nathaniel S. Butler / NBAE via Getty Images)