Inside the numbers on Josh Hart's contract extension with Knicks

Here are a few notes on Josh Hart’s extension with the Knicks:

There are no performance bonuses in Hart’s $81 million extension, per SNY sources. The first three years are fully guaranteed at a total of roughly $59 million. This means Hart will make an average of roughly $19 million per season in the first three years of the extension.

The fourth and final season of Hart’s extension is a team option, sources confirm.

If you include his 2023-24 season, Hart is under contract for $94 million over the next five seasons. In that span, he’ll have roughly $72 million in guaranteed money over the next four seasons.

FAIR VALUE?

You may see Hart’s deal and have a sense of sticker shock. But a $20 million annual salary in today’s league is vastly different than it was just five years ago.

Hart’s deal doesn’t exceed 14 percent of the salary cap in any season, as ESPN’s Bobby Marks notes. The highest percentage of the cap for Hart’s deal is 13.7 percent in the final season of the extension, per Marks. That year Hart will earn $22.5 million. That final season is also a team option, as The Athletic first reported.

Some further context worth noting: Hart’s average annual salary falls between the contracts/extensions signed by Dillon Brooks in Houston ($21.5M) and Caris LeVert of Cleveland ($16M) this summer. it would be sixth among wings who signed new contracts/extensions this summer, per Spotrac’s database.

In my opinion, Hart’s deal will be judged by his own health/availability and the Knicks’ team success over the next five seasons. Will Hart significantly increase his production in any one area now that he’s signed a significant extension? It’s possible, but I wouldn’t count on it.

You’d like him to make incremental improvements in all facets of his game, including perimeter shooting, if you’re the Knicks.

But if Hart — who was represented by team president Leon Rose at CAA before Rose joined the Knicks — continues to play at the same level he established last season, the extension will be a solid contract for both Hart and the Knicks.

Hart had an undeniable impact on winning last season. He defended and rebounded at a high level and was an important part of New York’s offense.

Of course, if Hart underperforms in the next five seasons, the Knicks will be open to justifiable criticism over the deal.