Knicks' Updated Salary Cap, Luxury Tax After Jalen Brunson's 4-Year, $156.5M Contract

The New York Knicks accrued a total of $37.1 million in future cap savings by signing Jalen Brunson to a four-year extension this summer rather than a five-year deal in 2025, according to ESPN's Adrian Wojnarowski.

Brunson's deal is worth $156.5 million over the stretch, rather than the $269 million he could have gotten next offseason, Wojnarowski reported.

Brunson's deal comes with a fourth-year player option for the 2028-29 season, Wojnarowski noted.

For now, Brunson's extension will help the Knicks participate in free agency, trade and the draft by keeping the team below the second salary cap apron, per Wojnarowski.

Per Spotrac, the Knicks have $4.9 million in first apron space and are $15.7 million under the second apron.

The contract maintains Brunson's salary at less than 23 percent of the cap throughout the duration of the contract, CapSheets' Yossi Gozlan noted.

The flexibility offered by Brunson staying with the team at under a quarter of the cap can allow the Knicks to work on building title contenders around their star guard.

The deal also allows the Knicks to lock in Brunson for the near future after signing OG Anunoby to five-year, $212.5 million deal and taking on Mikal Bridges with two years and $48.2 million remaining on his contract.

The four biggest hits on the Knicks' 2024-25 salary cap are currently Anunoby ($35.5 million), Julius Randle ($28.9 million), Brunson ($24.9 million) and Bridges ($23.3 million.) Those salaries will add up to 81.1 percent of the team's cap next season, per Spotrac.

Although next season all four of the Knicks' core players receive a raise, the amount of the cap allocated to the quartet climbs just slightly to 84 percent of the cap, thanks to the discount Brunson accepted on his contract.

As Gozlan noted, Brunson could potentially recoup the money he left on the table with this contract if he signs a maximum contract on his next extension, by which time the NBA salary cap is projected to be higher.

For now, the Knicks have seven of their top eight players locked in through at least the next two seasons with Anunoby, Brunson and Bridges as well as Josh Hart, Mitchell Robinson, Donte DiVincenzo and Miles McBride.

The Brunson extension could potentially offer the team more room to maneuver with Julius Randle, who is currently under team control for one more season before his $30.9 million player option for 2025-26. Randle has previously said he "would love" to stay with the Knicks (h/t Stefan Bondy of the New York Post.)