What are the terms and conditions of Jrue Holiday’s new contract with the Celtics?

According to Adrian Wojnarowski, Jrue Holiday agreed to a four-year, $135 million extension on Wednesday, erasing any chance he reaches free agency this summer. The deal potentially keeps him in Boston through the 2027-28 season, with that final year a player option.

Terms & Conditions

It has been reported that Holiday has declined his $37.4-million player option as part of his extension with the Celtics. Instead, he will make around $30.1 million next season, resulting in serious luxury tax savings for Boston. This is particularly important as Jaylen Brown begins his super-max extension. If calculated, the Celtics could save $35 million, including the luxury tax.

Holiday’s new contract includes two meaningful wins: $35 million in 2027 when he turns 36 and $37.4 million at 37. This puts him in the company of other NBA greats such as Steph Curry, Al Horford, and LeBron James, who signed the richest contracts this late into their careers.

The role adjustment that Holiday underwent when he joined the Celtics has prepared him to acclimate more successfully into success later in his career. Although this extension probably looks worse in Milwaukee, where he was often depended upon as a No. 2 option on offense, he’s taking 5.3 fewer shots per night in Boston and shooting 43.1% from three. He also has the best corner mark in the league (61.1% on 90 attempts), but primarily, he is orchestrating the defense.

Holiday was signed to a contract after being added to the team in September. A six-month breathing period followed until he became extension-eligible on April 1. The deal was negotiated with his agent, Jason Glushon, who has worked on contracts for Jaylen Brown and Al Horford.

Holiday could have signed a max extension for $221 million, but he wouldn’t find such an offer in the next free agency. Although the two sides could have played out the year on his player option, it was probably less appealing to Holiday, who sacrificed a lot at the age of 33.

Boston Celtics payroll

To secure Holiday, this deal may not come well by 2027-2028 due to the team’s sacrifice of future assets, including a 2028 draft pick swap and two first-round picks. However, the team’s investment in Holiday has paid off immensely in the first year.

The following is a breakdown of the Boston Celtics’ player salaries for the 2024-25 season: Jaylen Brown will earn $49.4 million, Jayson Tatum will earn $34.8 million, Jrue Holiday will earn $30.1 million, Kristaps Porzingis will earn $29.3 million, Coby White will earn $20.0 million, Al Horford will earn $9.5 million, Payton Pritchard will earn $6.7 million, Jaden Springer will earn $4.0 million, Oshae Brissett has a player option for $2.5 million, while Aaron Wiggins will earn $1.9 million and Neemias Queta is projected to earn $2.2 million but it is non-guaranteed. Additionally, Sam Hauser will earn $2.0 million. The team will also have first and second-round draft picks.

Experts say the team’s salaries will fall $6-7 million below the second apron. This means that certain penalties will apply, including a frozen draft pick, no mid-level exception, and no aggregating salaries in trades, among others. There is also the possibility of facing repeater tax payments later in Jrue Holiday’s contract, but they have some time to prepare for this.