According to Bryan Toporek of Bleacher Report, Denver Nuggets player Nikola Jokić might sign the NBA’s first $400 million contract in 2028. The NBA’s new television arrangements ensure that the pay ceiling will grow in the future years. These TV arrangements have a huge impact on the salary cap and player contracts. Denver has some time before Jokić’s cost increases, which is a positive development.
Jokić has signed a five-year contract for $276 million till 2027-28. Jokić, the MVP, has a player-option for 2027-28, allowing him to become a free agency in 2027. According to Tom Friend of the Sports Business Journal, the NBA is close to negotiating a $2.8 billion contract with ESPN, an estimated $2.5 million for the league’s return to NBC, and a $1.8 billion deal with Amazon. All told, the NBA is expected to sign media deals worth more than $7 billion.
According to industry sources, ESPN will eventually pay $2.8 billion per year for the league’s ‘A’ package, which includes the NBA Finals, a conference final, weekly primetime games, the WNBA, and likely shared international rights,” Friend detailed in a May 22, 2024 story titled, “NBA formalizes deals with Disney, Amazon, NBC.” “NBC’s proposed ‘B’ package is believed to be worth between $2.5B and $2.6B annually and would probably include a ‘Basketball Night in America’ or ‘Sunday Night Basketball’ following the NFL season, a total of two primetime windows a week, conference semifinals and a conference final,” said Friend.
“Amazon’s deal is believed to be worth between $1.8B and $2B and would likely include the Emirates In-Season Tournament, the SoFi Play-In Tournament, first-round playoff games, the WNBA and international rights.” Given the increased cash from the league’s television contract, we should expect a considerably higher salary cap. Spotrac’s Keith Smith broke down the expected salary cap numbers beginning with the 2025-26 season, when the new media deals begin.
“Some fun numbers! The NBA’s $7 billion per year in media rights will most certainly lock in 10% cap growth (the maximum cap increase) per season beginning in 2025-26,” Smith explained in a May 22 message on X. “If so, the cap will exceed $200 million in the 2028-29 season. A 35% maximum compensation that year is projected to be $72 million. The fifth-year pay on the max agreement is $95 million. What is the total worth of the maximum deal? “Five years, $419 million.”
Okić has a chance to be the first player to land that $419 million deal, but must play out the final season of his contract in 2027-28. Here are the necessary conditions for Jokić to sign a five-year, $419 million contract. “Jokić is under guaranteed contract through 2026-27, and he has a $62.8 million player option in 2027-28,” Toporek wrote in a May 23 piece titled, “Ranking the Wildest Salaries and Contracts NBA Superstars Could Get Over Next 5 Years.” “If he declines that player option, he will be eligible for the same five-year, $381 million extension that Shai Gilgeous-Alexander may sign in 2026-27.
If Jokić exercises his 2027-28 player option, he might become the first NBA player to sign a $400 million contract. 2028-29: $72,253,335 2029-30: $78,033,602 2030-31: $83,813,869; 2031-32: $89,594,135; 2032-33: $95,374,402; Total: $419,069,343.
