New York Knicks star Jalen Brunson reportedly took a major pay cut in his new contract extension.

Brunson signed a four-year, $156.5 million extension with the Knicks, per ESPN's Adrian Wojnarowski. That figure is $113 million less guaranteed than he would have been eligible to receive next offseason.

While the decision gives Brunson less money than he would have been eligible for—and likely deserved—it will put New York in a much better position financially to build a championship-caliber roster around him.

After Brunson's reported extension, Knicks fans praised the point guard for the team-first decision.

Brunson was already a value for the Knicks before his new deal, but taking a massive pay cut makes him arguably the best dollar-for-dollar player in the NBA.

The 27-year-old has risen to stardom since joining the Knicks ahead of the 2022-23 season. Last year, he put up 28.7 points and 6.7 assists per game while shooting 47.9 percent from the field and 40.1 percent from deep.

In the playoffs, he averaged 32.4 points and 7.5 assists per game and was a win away from leading New York to its first Eastern Conference Finals appearance since 2000. He had a miraculous four-game stretch where he put up 47, 40, 41 and 43 points against the Philadelphia 76ers and Indiana Pacers, proving he can rise to the moment.

In his third year with New York this season, Brunson will look to get his team to the next level and compete for an NBA championship.

It's fair to say the Knicks are one of the most capable teams of dethroning the Boston Celtics in the East this year. New York traded for Brooklyn Nets swingman Mikal Bridges already this offseason and could make a few more moves before the start of the season.

Given the Knicks playoff run in 2024 came without star Julius Randle and a handful of other role players dealing with injuries, a fully healthy New York team could be scary in the playoffs.