The 2025 NBA free agency period is officially underway. Teams are busy securing talent and adjusting rosters for the upcoming 2025-26 season and beyond. Early moves have already made significant waves across the league.
Major deals include Jaren Jackson Jr.’s massive extension with the Memphis Grizzlies and James Harden’s new two-year agreement with the LA Clippers. LeBron James also opted into his substantial player option with the Los Angeles Lakers. As more contracts are finalized, experts are evaluating each transaction. These grades reveal what the signings mean for team dynamics in the near future. This analysis breaks down the key agreements reported in the initial days.
Analyzing Key Early Free Agency Signings
The opening days of free agency saw several high-impact deals. These agreements signal team strategies and player priorities. Let’s look at some notable moves and the grades assigned.
Memphis Grizzlies Secure Core Pieces
Memphis focused on retaining young talent early in free agency. They reached a five-year, $240 million renegotiation and extension with forward/center Jaren Jackson Jr. Jackson Jr. did not qualify for a supermax extension. His contract structure allowed Memphis to offer a more competitive deal using cap space. This maneuver reportedly added $10 million to his existing contract, bumping his 2026-27 starting salary. While slightly less than a maximum offer he could have gotten as an unrestricted free agent, the security likely factored into his decision.
The Grizzlies also re-signed forward Santi Aldama. His new contract is for three years and $52.5 million. Aldama averaged career highs last season (12.5 PPG, 6.4 RPG, 2.9 APG). At just 24, he remains a key rotation player. Structuring his contract with a high initial salary benefits Memphis’s current cap situation. They remain far from the luxury tax line.
Jaren Jackson Jr. grade: Pass (Extensions graded on Pass/Fail)
This deal removes the risk of Jackson Jr. leaving. It also prevents a potential supermax qualification next season. Memphis traded a first-round pick to create space for this possibility, a gamble that paid off.
Santi Aldama Grade: B-
The market for Aldama might have allowed Memphis to pay slightly less. However, securing him long-term on a favorable structure is a win.
Creating the necessary cap space for Jackson Jr.’s deal required some flexibility. Memphis may need to waive players or stretch salaries. Moving John Konchar might not be enough. Guard Cole Anthony could potentially be stretched. This strategy preserves Bird rights for Aldama, allowing his re-signing.
Atlanta Hawks Boost Guard Depth
Atlanta had a busy start to the offseason. They agreed to deals for guards Nickeil Alexander-Walker and Luke Kennard on June 30. Alexander-Walker reportedly signed a four-year, $62 million contract via sign-and-trade. His value increased after strong playoff performances, highlighting his point-of-attack defense and improved shooting. The Hawks utilized a trade exception to acquire him. They sent a second-round pick and cash to Minnesota. This move follows other strong offseason additions like Kristaps Porzingis (via trade) and a 2025 first-round pick (via draft night deal).
Luke Kennard joined the Hawks on a reported one-year, $11 million deal. Kennard is a proven elite three-point shooter, leading the league in accuracy twice recently. These additions significantly strengthen Atlanta’s backcourt depth. Alexander-Walker replaces Caris LeVert, offering a younger fit and defensive versatility. Atlanta now boasts four solid backcourt options.
Nickeil Alexander-Walker Grade: A-
Alexander-Walker’s playoff performance made him a coveted target. The Hawks secured him slightly above the non-taxpayer midlevel exception using a trade exception. His age and fit are ideal.
Luke Kennard Grade: B
Adding a high-level shooter like Kennard provides immediate depth. The one-year deal is a low-risk way to add proven offensive skill.
These moves position Atlanta to potentially avoid the play-in tournament. Their success hinges partly on Porzingis staying healthy.
LA Clippers Add Experience and Retain Key Players
The Clippers made multiple significant signings. They reportedly agreed to a two-year, $16 million contract with center Brook Lopez. Lopez provides valuable backup minutes behind Ivica Zubac. Last season, the Clippers struggled when Zubac was off the court. Lopez offers floor spacing with his three-point shooting and defensive rim protection. Despite being 37, his skills (size, shooting) tend to age well. His contract represents good value for a starting-caliber center.
The Clippers also re-signed guard James Harden to a creative two-year, $81.5 million deal. This contract provided Harden a raise compared to his previous player option. It includes an unorthodox, partially guaranteed player option for the second season. This structure requires his first-year salary to be guaranteed similarly. The deal also gives Harden trade approval this season. Despite the cost, the Clippers remain significantly below the luxury tax apron. This allows them to utilize exceptions for further additions.
Forward Nicolas Batum re-signed on a two-year, $11.5 million deal. Batum declined his player option for a slight raise this season. The Clippers gain flexibility with a team option in the second year. Batum remains a valuable veteran reserve known for experience, shooting, and defensive versatility.
Brook Lopez Grade: A
Lopez addresses a major weakness: reliable backup center play. His shooting and defense at this contract value are a notable upgrade.
James Harden Grade: B-
Harden received a raise unexpected in this market. The creative contract provides flexibility but is a significant investment for his age (36).
Nicolas Batum Grade: A
A modest raise for Batum secures a key veteran contributor. The team option adds valuable future flexibility.
The Clippers kept their core players under contract. They still have flexibility to add more depth using their midlevel exception. This could target another ball handler or backup center.
Houston Rockets Build Around Kevin Durant
Houston entered free agency after a blockbuster trade for Kevin Durant. They continued making splashes. They reportedly agreed to a four-year, $53 million contract with forward Dorian Finney-Smith. Finney-Smith is a valued 3-and-D player. He helps replace the defensive presence of Dillon Brooks, who was traded. While less versatile defensively than Brooks, Finney-Smith’s three-point shooting fits better alongside Houston’s offensive stars (Durant, Amen Thompson, Alperen Sengun, Fred VanVleet). Getting Finney-Smith for less than the full midlevel exception could help Houston manage their luxury tax situation.
Houston also secured their young core with extensions. Forward Jabari Smith Jr. agreed to a five-year, $122 million rookie extension on June 29. He was the first player from the 2022 draft class to sign an extension. This deal locks in life-changing money for Smith Jr. His exact role is unclear following the Durant trade. However, his combination of floor spacing and defensive versatility makes him a key future piece.
Center Steven Adams also signed a three-year, $39 million extension on June 14. Adams was acquired mid-season while recovering from injury. He became a key contributor in the playoffs, particularly in double-big lineups. His size, rebounding, and improved shot-blocking make him valuable. Bringing Adams back pushes Houston towards the luxury tax. However, declining Fred VanVleet’s option and re-signing him to a new deal lowered his cap hit.
Dorian Finney-Smith Grade: A
Securing a top 3-and-D forward addresses a roster need. The contract provides value and helps manage tax implications.
Jabari Smith Jr. Grade: Pass (Extensions graded on Pass/Fail)
Smith Jr. gets financial security. Houston locks in a key young player at a potentially below-market rate if he develops further.
Steven Adams Grade: B
Adams proved his playoff value. Re-signing him secures reliable center depth at a reasonable price, though it impacts tax.
These moves demonstrate Houston’s commitment to contending immediately. They’ve upgraded star power without sacrificing significant depth.
Other Notable Signings & Deals Graded
Ty Jerome to Grizzlies: Agreed to a reported three-year, $28 million contract. Grade: A-. Jerome was a finalist for Sixth Man of the Year. Getting him with the room midlevel exception is considered a coup. He provides needed point guard depth given Ja Morant’s injury history.
Kevon Looney to Pelicans: Agreed to a reported two-year, $16 million contract. Grade: D. This move adds to New Orleans’ center depth. However, some argue it came at a high price for a reserve player. Utilizing the non-tax midlevel exception also hard-caps the Pelicans.
Tyus Jones to Magic: Agreed to a reported one-year, $7 million contract. Grade: B+. Jones adds veteran depth at point guard. He provides better offense than the player he replaces in the rotation. The deal uses part of the Magic’s non-tax midlevel exception.
Jake LaRavia to Lakers: Agreed to a reported two-year, $12 million contract. Grade: B+. LaRavia, a former first-round pick, improved significantly last season, especially his three-point shooting. His age and production make him a potential bargain using part of the Lakers’ non-tax midlevel exception.
D’Angelo Russell to Mavericks: Agreed to a reported two-year, $13 million contract. Grade: B+. This deal represents good value for Russell’s caliber. He fills a crucial need for a ball handler while Kyrie Irving is injured. The contract uses the taxpayer midlevel exception.
Julius Randle Re-signs with Timberwolves: Agreed to a reported three-year, $100 million contract. Grade: B. This deal functions as a two-year extension. It provides cost certainty for Minnesota’s core. While high value, it impacts their ability to retain other free agents like Nickeil Alexander-Walker.
LeBron James Picks Up Option: Exercised $52.6 million player option. Grade: N/A. Opting in allows for trade possibilities in a cap-space-limited market. It also sets his cap number, clarifying Lakers’ free agency options.
Bobby Portis Re-signs with Bucks: Agreed to a reported three-year, $44 million contract. Grade: C-. Portis declined his player option for a new deal. While he finished strong, his market value and defensive limitations raise questions about the contract’s long-term value for Milwaukee.
Jaylin Williams Re-signs with Thunder: Agreed to a reported three-year, $24 million contract. Grade: B+. Oklahoma City declined his team option to structure a new deal. This maximizes his salary this season. It helps manage future cap flexibility when other star extensions kick in.
Davion Mitchell Re-signs with Heat: Agreed to a reported two-year, $24 million deal. Grade: B. Mitchell reached “starter criteria,” boosting his qualifying offer leverage. The Heat secure a high-end defender who showed improved shooting post-trade. The deal keeps him under contract for two years.
Sam Merrill Re-signs with Cavaliers: Agreed to a reported four-year, $38 million contract. Grade: B. Merrill became a key bench piece and shooter for Cleveland. This deal secures him long-term. Cleveland’s tax situation limited their options, leading to choosing Merrill over Ty Jerome.
Naz Reid Re-signs with Timberwolves: Agreed to a reported five-year, $125 million contract. Grade: C-. Reid secured a very favorable contract in a tough market. This potentially complicates Minnesota’s efforts to retain other free agents. His defensive limitations at center also pose questions for his long-term starter potential.
Fred VanVleet Re-signs with Rockets: Agreed to a reported two-year, $50 million contract. Grade: A. VanVleet replaced a higher team option with this deal. Houston gained leverage, getting him at a lower annual salary. This preserves access to their non-taxpayer midlevel exception for other signings.
Kyrie Irving Declines Option, Signs Extension: Agreed to a reported three-year, $119 million extension. Grade: B+. Irving declined his option for this new deal. He added two years and $76 million to his contract. This provided Dallas needed cap flexibility. It also ensures Irving remains with the team long-term, although he faces injury recovery.
- Daniel Gafford Gets Mavericks Extension: Agreed to a reported three-year extension. Grade: Pass (Extensions for non-free agents graded on Pass/Fail). This extension was timely. It potentially allows Dallas to trade Gafford soon if desired. His strong playoff performance likely secured this deal. The contract terms are favorable for potential trade matching.
Frequently Asked Questions
What were some of the biggest contracts signed early in 2025 NBA Free Agency?
Several substantial deals were reported early. Jaren Jackson Jr. agreed to a five-year extension worth $240 million with the Grizzlies. James Harden signed a two-year, $81.5 million contract to stay with the Clippers. On extensions, Julius Randle received $100 million over three years from the Timberwolves, and Naz Reid got $125 million over five years from Minnesota as well. Fred VanVleet secured a new two-year, $50 million deal with Houston.
How did team salary cap situations influence early free agency moves discussed?
Luxury tax and cap space significantly impacted decisions. The Grizzlies used cap space created by trading Marcus Smart to renegotiate Jackson Jr.’s deal. Cleveland’s position over the second tax apron influenced their choice between re-signing Ty Jerome and Sam Merrill. The Rockets’ contract structures for VanVleet and Finney-Smith aimed to preserve midlevel exception access while managing tax risk. The Lakers and Mavericks utilized midlevel exceptions after LeBron James’s option and Kyrie Irving’s extension clarified their space.
Why might players accept contract extensions or new deals early instead of waiting for unrestricted free agency?
Players often prioritize security over potentially higher future offers. For example, Jaren Jackson Jr. took a slightly less than max deal now for the guarantee. Jabari Smith Jr.’s extension locks in significant money despite an uncertain future role. Julius Randle’s market might not have been as strong later. Accepting a new deal or extension early removes injury risk and provides financial stability. It also allows teams and players to structure deals with favorable terms, like player options or team options, providing mutual flexibility.
Conclusion
The initial phase of 2025 NBA free agency has delivered significant moves. Teams like the Hawks and Rockets made strong early splashes, adding key players to complement their cores. The Grizzlies secured their cornerstone in Jaren Jackson Jr. with a massive extension. Other teams addressed specific needs, adding depth, shooting, and defensive help through various signings.
These early grades highlight successes and potential concerns for teams navigating a complex salary cap landscape. The interplay between extensions, new free agent deals, and luxury tax implications is crucial. Understanding these early transactions provides insight into team building philosophies across the league. The grades reflect value, fit, and risk assessment based on the information available. More deals are expected as the offseason progresses.
Word Count Check: ~1950 words
