Known for his stellar defense, Holiday’s NBA contracts now total over $380 million, with his latest extension including a player option for the fourth season, ensuring him a star-level salary until 2028, when he’ll be 37 years old. Although rumors of the deal had been circulating, it is now confirmed.

This season, Holiday’s stats reflect a slight shift in his role compared to his time with the Bucks, especially in the absence of Khris Middleton due to injury. He currently averages 12.5 points, 5.4 rebounds, and 4.9 assists per game, while boasting his career-best three-point shooting percentage at 43%, which surges to an impressive 62% on corner shots.

The Celtics’ strategy mirrors their approach with Kristaps Porzingis: acquiring the player first, then extending their contract. For Porzingis, it was a two-year, $60 million extension, guaranteeing him $96 million until 2026.

As the playoffs loom, the Celtics are keen on maintaining their cohesive roster, prioritizing stability. Holiday’s decision to reject his $37.3 million player option underscores his commitment to Boston, opting instead for a new deal worth $30.1 million for the next season.

However, these moves will tighten the Celtics’ finances for the 2024–25 season, likely resulting in substantial luxury tax payments as they navigate salary cap constraints.