Klay Thompson’s professed dedication to the Warriors and the Bay Area isn’t just words. He said he wants to stay and he’s already taking the steps to do so.According to multiple sources, Thompson and the Warriors have already engaged in discussions regarding a contract extension. If the sides agree this offseason, Thompson would not hit the free-agent market for up to another five years.
Signing an extension would significantly decrease the maximum Thompson could make — and save the Warriors millions in luxury tax penalties.
The most he could get in the first year of an extension is a 120 percent raise. With the highest annual increases allowed, that would put Thompson’s extension at four years and just over $102 million. Add the $18.9 million he is due to make in 2018-19 and Thompson is looking at a maximum five-year salary of $121 million should he sign an extension.
If Thompson were to play out his contract and sign a new deal with the Warriors before the 2019-20 season, the maximum he would be eligible for — based on current salary-cap projections — is five years, $188 million.
However, Thompson probably understands that the maximum is not really on the table. The Warriors would almost be forced to let him walk if he demanded a new deal averaging $37.6 million per year since Stephen Curry and, presumably, Kevin Durant would be making the maximum. Three maximum salaries — for players in their 30s — and luxury-tax penalties figure to be too high even for the Warriors.
However, if Thompson became a free agent and went elsewhere, he could sign up to a four-year deal worth $139 million. Adding next year’s salary and that’s $158 million he could make over five years.
The NBA rumor mill has the Philadelphia 76ers interested in Thompson, who would seem to be the missing piece for the burgeoning franchise. The Los Angeles Lakers are an obvious match for the SoCal kid. Several teams could use Thompson, which is why there is little doubt he could get the four-year max if he hits the free agent market.
But Thompson wants to remain a Warrior. And he has proven that by engaging in discussions that could leave at least $30 million on the table (over five years) to remain in the Bay through his prime.
“It would be hard for me to envision going anywhere else,” Thompson said in a profile by Bleacher Report.
What’s more, two sources said talks have included Thompson taking an extension with an average of around $23 million a year — which would come out to about four years, $92 million, nearly $50 million less than he could get on the open market — and puts his five-year total at $111 million.
The final numbers won’t be, and can’t be known until July as Durant’s contract status will impact Thompson’s extension. Of course, there is no guarantee the sides reach an agreement this summer.
But if Thompson does sign an extension, it would be his second consecutive team-friendly contract. Thompson signed a four-year, $69 million extension in 2014. That figure was an expectation of what his maximum would be under the projected salary cap. So when the cap turned out higher, Thompson was locked in, missing out on the four years, $73 million extension he could have gotten.
Thompson has said he cares more about his happiness than the extra money, and he is happy here. While many expected Thompson to want out of the Warriors, where at best he is No. 3, he sees the franchise as a place to spend his entire career.
The choice between $150 million in a place he doesn’t know or $110 million in a place he knows he loves — it isn’t that hard for Thompson, those close to him say. In the end, he is still set for life financially. And he still has a lucrative deal with China-based shoe company Anta, and other endorsements such as Chocolate Milk and Body Armor, to supplement his NBA salary.
Why not just play it out as a free agent and re-sign with the Warriors for more money, even if it’s not the max? No doubt, Thompson and the Warriors could find a number that is greater than $102 million but still below the max.
But Thompson hasn’t had a track record of prioritizing squeezing every dollar he can. Plus, he doesn’t really want a prolonged or contentious negotiation, or the stress that comes with his wealth of options.
Thompson likes peace. He likes easy. He likes what he has. An extension would get all this done, help the team and keep this train rolling.