Celtics giving two-time All-Star eye-popping contract extension

The Celtics are signing Jrue Holiday to a four-year, $135M contract extension, agent Jason Glushon tells ESPN’s Adrian Wojnarowski.

A source tells Adam Himmelsbach of the Boston Globe that the final season (2027-28) of Holiday’s new deal is a player option.

As Wojnarowski writes, Holiday is declining his $37.3M player option for 2024-25 in order to sign a long-term deal with Boston that will save the team “several million dollars” toward next season’s salary cap.

According to ESPN’s Bobby Marks, Holiday’s extension will pay him $30.1M next season, trimming the Celtics’ projected luxury-tax bill by over $35M. There’s also a scenario in which Boston could get under the second tax apron next season if it trims payroll, Marks adds.

The old collective bargaining agreement did not permit players to decline an option and replace it with a lower salary via an extension, making Holiday the first player to utilize the change in the new CBA, notes cap expert Yossi Gozlan.

Holiday, who was traded from Milwaukee to Portland in the offseason before being re-routed to Boston, is a two-time All-Star and five-time All-Defensive team member. Chris Mannix of SI.com hears the Celtics and Holiday “have been thrilled” with their partnership, and Boston knew it would take a lucrative long-term deal in order to retain the veteran guard and have him avoid free agency.

Interestingly, Holiday’s new extension is essentially an exact replica of the four-year, $135M extension he signed three years ago with Milwaukee, per Wojnarowski. Holiday, 33, becomes the fourth player in league history to sign a guaranteed $100M+ contract at 33 years old or older, joining LeBron James, Stephen Curry and Al Horford.

Since he’s often a fourth or fifth option on offense for Boston, Holiday’s scoring (12.5 PPG) and assists (4.9) are down this season. However, he’s averaging a career-high 5.4 rebounds per game while shooting a career-best 43.1% from deep in 68 games (32.9 MPG).

The Celtics are currently 62-17, holding by far the best record in the NBA. They’re 14 games ahead of the East’s No. 2 seed, Milwaukee, and lead the top Western teams by seven games.