Thompson, who signed his current contract in October of 2014, will be eligible to sign a new deal starting in July. If he and the Warriors reach an agreement on an extension, that new contract would go into effect in 2019/20, after his current pact ends. An extension could keep him under team control for up to four additional seasons.
A four-time All-Star, Thompson is coming off a regular season in which he established new career highs in FG% (.488) and 3PT% (.440) to go along with his usual 20+ PPG. He also chipped in 3.8 RPG and 2.5 APG while playing solid defense.
Although the Warriors should be motivated to lock up Thompson before he reaches unrestricted free agency in 2019, it may be in the 28-year-old’s best interest to wait on a new deal. The starting salary on a veteran extension can only be worth up to 120% of his previous salary, meaning Thompson’s extension could start at approximately $22.79MM and be worth up to about $102MM over four years. That’s well below what his maximum salary would be as a free agent.
Still, Thompson has said he cares more about winning and about his happiness than he does about maxing out his earnings, as Marcus Thompson writes. It’s also worth noting that the Warriors – who will have to give Kevin Durant a raise this summer and would need to negotiate a new contract with Draymond Green by 2020 at the latest – almost certainly won’t be able to give all four of their stars max deals, given the luxury-tax ramifications.
As such, Thompson may be willing to accept a modest discount to keep the band together. Two sources tell The Athletic that Thompson and the Dubs have talked about an extension with an average annual salary of about $23MM — that would come in at approximately $92MM over four years, which puts it below the maximum value of a Thompson extension and well below the max value of a potential free agent contract.
Marcus Thompson cautions that there’s no guarantee that Klay will ink a new extension with the Warriors this offseason. The two sides would have to find a deal that works for both of them, and Durant’s new contract could be a factor in determining how much Golden State is willing to offer. Still, the fact that this discussion is already happening bodes well for Thompson’s potential long-term future in the Bay Area.