When Jaylen Brown inked the largest contract in NBA history, it was predicted that his teammate would overtake him very soon. And that was what happened. Jayson Tatum signed a five-year $314 million ($62.8 million annually) that kicks off in the next season. So, for now, Brown remains at the top, thanks to his annual salary of $49.2 million, which is set to increase year-on-year. These sizeable contracts are surely of historic proportions in the NBA, but a new player in town and his $244 million deal could very well be considered in the same category. We are talking about the Pacers’ rising star, Tyrese Haliburton.

The news of Haliburton’s five-year extension was announced in early July of last year. ESPN’s Adrian Wojnarowski had tweeted that Indiana had offered the All-Star guard a contract with up to $260 million! However, at the time, the league hadn’t announced the salary cap ($141 million) for the 2024-25 season. Of course, now we know the exact contract details (5 years, $244,623,120).

Yet, just how is it that Haliburton’s contract can be compared to that of Jayson Tatum? After all, he is $70 million short of the NBA Champion’s whopping $314 million! The simple answer is that it isn’t the comparison but the phenomenal spike in his annual salary. With his extension kicking in, Tyrese will make $36,367,965 more than last year!

In late November 2020, Haliburton’s then-team Sacramento signed him to a 4-year $17.88 million rookie scale contract extension. The subsequent years saw the Kings and then the Pacers exercise team options, with his last remuneration standing at a modest $5 million. In other words, the Iowa State product will be earning $42,176,400. For those curious minds out there, Tyrese Maxey and Desmond Bane who’ll be earning 30.8 million and 30.1 million more than last year, respectively, are 2nd and 3rd on this All-time list.

So, coming back to the leader of this chart, what exactly made this possible?

How Tyrese Haliburton landed a heavenly deal at just 24!

Three words – Higher Max Criteria.

If we were to put this in as simple terms as possible, it is a criterion that allows teams to sign their star young players to bigger second contracts. Those who meet the guidelines will be eligible for a maximum salary beginning at 30% of the cap max salary. To break it down further, a player with Haliburton’s experience level doesn’t usually see such a huge bump in their contract. The most the Blue & Gold could have offered the Wisconsin native was 25% of the cap as his total salary.

However, thanks to the Higher Max Criteria, Tyrese Haliburton clinched a contract that starts at 30% of the salary cap. Needless to say, it came with its own set of stipulations. He had to accomplish one of the following to make use of the Higher Max Criteria:

• Make one of the three All-NBA teams
• Be named the NBA’s Most Valuable Player, or,
• Earn the NBA’s Defensive Player Of The Year award

Tyrese, to his credit, made the All-NBA Third Team, directly making him eligible for the 30% raise. #0 does not have a player option, but he does have a trade kicker of 15%, meaning that the star guard is in it for the long haul.

Now, do you see how Tyrese Haliburton and his contract could very well be described as historical? Let us know your thoughts on the matter in the comments.

 Before you go, though, be sure to check this video of Leonard Armato’s take on the deadly duo, Shaq and Kobe. Don’t forget to check back in for more such updates from our ES Fancast!