At the time of this writing, negotiations between the Boston Celtics and Jaylen Brown on a possible contract extension are incomplete and on hold. Brown is eligible to sign a 5-year supermax deal after earning All-NBA honors this year, but he and the Celtics have yet to come to terms on such an extension. The Boston Globe’s Adam Himmelsbach reported these negotiations are on pause while Brown attends an NBPA meeting overseas, but both sides are eager to eventually ink a deal.
Brown could sign an extension for five years worth as much as $304 million, depending on estimated changes to the NBA’s salary cap. Such a deal is both longer and more lucrative than Brown could earn with another team as a free agent next summer if he forgoes a new contract with Boston this offseason.
Brown and the Celtics have until October to complete an extension, though it is believed this will be finalized sooner rather than later.
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Although both Boston and Brown are reportedly looking to come to terms with this extension, that doesn’t mean they agree on every detail. As Himmelsbach reported, the structure of the contract, future opt-outs, and possible incentives represent the bulk of the negotiations that remain.
Let’s take a closer look at some of these finer details that are still being considered as Jaylen Brown and the Boston Celtics discuss a contract extension.
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— The Celtics Wire (@TheCelticsWire) July 17, 2023
What is a supermax?
The size of an NBA contract is usually limited by years of service. For example, a player usually needs 10 years of experience before he can be offered a salary worth up to 35% of a club’s salary cap. However certain criteria can allow players to bypass this age-restriction. By landing on the 2023 All-NBA second team, Brown became eligible for a deal worth 35% of the cap despite only having seven years of NBA service.
Boston and Brown are now at an interesting crossroads. The Celtics are the only team who can offer Brown a 5-year, $295 million deal, and Boston could offend Brown if they don’t extend this maximum amount. Brown could also be leaving millions of dollars on the table if he forgoes an extension entirely. Again, both sides are likely eying the full supermax, and ongoing negotiations revolve around finer details.
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Importantly, a full supermax is always ascending in value at 8% annually. Brown doesn’t have enough experience to be offered a no-trade clause, but can’t be traded in the first year of his new deal if he signs the full supermax.
It is possible the Celtics offer Brown a deal worth slightly less than the full 35% outright. In that scenario, Boston could create a contract worth a few million dollars less than the full supermax, opening the door for incentive-based bonuses. This could be tied to things like a player option (more on this shortly), or a trade kicker.
Technically Brown could still reach the full value of the supermax deal, but with extra barriers. This could be a source of tension in negotiations but is not an uncommon practice in the NBA.
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Team or player options
The final few years of Brown’s potential extension may be a cause for extended negotiations. Boston can offer a deal worth exactly five seasons with no caveats, but there are ways to change this structure.
The Celtics may grant Brown a player option for the final year of his contract. This would allow the Georgia native a chance to hit free agency a season sooner if he feels he wants a change of scenery or wants to start negotiations on another new contract with Boston even earlier. Jayson Tatum was offered a player option on his most recent deal signed in 2020.
Boston could also want a team option to be part of the deal. In this scenario, the Celtics would have more say in what the tail end of the contract looks like. Team options are not uncommon, but are less desirable for players.
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Trade kickers
Another consideration for any Brown supermax extension is a potential trade kicker. This is a bonus paid to a player if he is traded away from the Celtics. For example, Marcus Smart had a trade kicker worth 15% in the contract he signed last season with Boston.
Brown’s name has been popular among NBA analysts for almost his entire career. Despite being one of the top players in the Association, Brown is consistently pegged as someone who Boston could flip at any moment. It would be understandable for Brown, a Vice President of the NBPA, to want an added layer of protection.
A trade kicker could be a tool for Boston’s front office to show their commitment to Brown. That said, a trade kicker of any size could be quite expensive when attached to this new contract, and moot if it would bump the contract past supermax thresholds. So, a trade kicker is only useful if Brown doesn’t sign for the full 35%, or for marginally smaller pay boosts each season his 8% pay raise lags behind the projected cap increase of 10%.
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— The Celtics Wire (@TheCelticsWire) July 17, 2023
Payment structures
There are a few other things Brown and the Celtics may be negotiating, though these may be more akin to bookkeeping than anything else. Perhaps the most important of these is how Brown would be paid.
Most NBA players receive paychecks twice a month without much added consideration. However, sometimes players prefer lump sum payments or even advances on their salary. Brown could decide he wants a specific payment structure once his new deal goes live.
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Final thoughts
The reporting around this issue has been consistent across multiple sources, and it does indeed appear Brown and the Celtics will come to terms on a full supermax. Brown has been a rising star in Boston, and is unlikely to agree to a smaller contract.
The details here matter, though, and both sides are right to consider their options carefully. Boston has been the darling of the Eastern Conference for many years now in part because of shrewd roster design. It’s not very hard to find teams who are paralyzed by messy contracts or bloated, inflexible payrolls.
Even if contract negotiations last into the summer or even early fall, there’s too much money and opportunity at stake to not feel optimistic. Nothing is guaranteed but expected Brown to be in Boston for the foreseeable future.
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— The Celtics Wire (@TheCelticsWire) July 17, 2023
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