When the Phoenix Suns handed Devin Booker a two-year, $145 million extension this July — despite him still having three years and $171 million left on his current contract — it was more than just a headline-grabbing move. It was proof of a new NBA trend: players are skipping traditional free agency and securing mega-extensions that are making them the highest-paid athletes in American sports.
Booker’s deal, which averages $72.5 million per year, is the largest annual salary in NBA history and locks him into Phoenix through 2030. He’s far from alone. In the past three years, 17 NBA players have signed extensions worth more than $200 million — with many others eclipsing $40 million annually, a figure far outpacing peers in the NFL and MLB.
So why are basketball’s biggest stars choosing certainty over the open market?
Why NBA Players Prefer Extensions Over Free Agency
Traditionally, free agency was a chance for players to leverage their star power — whether by switching teams, negotiating max deals, or simply using rival interest to raise their value. But the new reality, insiders say, is that guaranteed money and stability are winning out.
According to Bobby Marks, ESPN salary cap analyst and former Brooklyn Nets executive, the 2023 Collective Bargaining Agreement tilted the balance toward extensions. Teams can now offer them earlier and at higher raises, incentivizing stars to commit long before contracts expire.
Between 2011 and 2020, only 41 veterans signed extensions. Since 2020, that number has skyrocketed to 104.
“The lure of guaranteed money is so strong right now,” Marks explained. “The ability to take something that you know.”
Agents agree. Greg Lawrence of Wasserman, who negotiated Domantas Sabonis’ $186 million deal, said players no longer want to gamble on a “volatile” free-agent market — especially as fewer teams have had meaningful salary cap space since the pandemic.
How Trades Have Replaced Free Agency
The ripple effect is clear: with extensions eating up cap space, free agency has thinned out, and trades have become the new arena of blockbuster moves.
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De’Aaron Fox secured a four-year, $222 million extension with the San Antonio Spurs — but only after being traded there.
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Teams now see trades as the main way to acquire stars, while players use trades to reset and then extend for more guaranteed money.
For fans, this shift means less July free-agency drama — but more year-round speculation about which stars might request trades or grow unhappy with their teams.
The Rich Get Richer — But What About the Middle Class?
Critics like Draymond Green and Austin Rivers argue that the shrinking free-agent market has squeezed the NBA’s “middle class.” Superstars are cashing in with record deals, but role players often end up with shorter, smaller contracts.
Still, as the league’s $76 billion TV rights deal kicks in, the cap is set to rise — and with it, contracts will only grow. Marks predicts that by 2028, it’s plausible a star could earn $100 million in a single season.
That means today’s $40-50 million extensions could soon look like bargains.
Why This Shift May Actually Help the NBA
Despite the quieter summers, insiders say the league may benefit from the nonstop speculation that has replaced traditional free agency buzz.
“I think it’s almost been replaced by more of a 24/7 news cycle,” Lawrence said. “‘When is this player going to get unhappy? If this team struggles, who asks for a trade?’ It just never ends.”
That constant chatter keeps the NBA in headlines and could make the league even stronger as a global entertainment product.
