New York Knicks star Jalen Brunson decided to make a considerable sacrifice.

The 27-year-old agreed to a new four-year contract extension with the Knicks worth $156.5 million, effective from the 2025-26 season, according to league insider Adrian Wojnarowski of ESPN.

Brunson accepted this deal despite being eligible for a five-year supermax contract worth $269 million in the summer of 2025, taking $113 million less in guaranteed money to give the Knicks financial flexibility.

The agreement ensures the Knicks will avoid reaching the dreaded second-apron salary cap level for the foreseeable future. This threshold limits a team's ability to make trades, sign players, and use draft picks.

The 6-foot-2 guard will enter the third year of his current deal, a four-year $104 million contract signed in the summer of 2022 with a fourth-year player option for 2025-26, which he will forgo in favor of the recently agreed extension.

The former Villanova Wildcat made $26.3 million in 2023-24 and will earn $24.9 million in 2024-25, as his contract is one of the few in the NBA with a descending salary.

Jalen Brunson could recoup money he left on the table

Despite his vast financial sacrifice in the present, Brunson has the opportunity to recoup the money he left on the table in the future.

The 2024 NBA All-Star could be eligible for either a four-year maximum extension worth $323 million in 2028 or a five-year deal worth $418 million in 2029.

However, it is not guaranteed that the Knicks will offer him those prospective deals, as Brunson would be either 31 or 32 years old by that point.