Klay Thompson’s Era with the Golden State Warriors has been marked by his steadfast dedication over 13 years. His stellar career boasts five All-Star nods, two All-NBA team selections, and a commendable four championships. However, despite these accolades, Thompson’s future with the Warriors now hangs in the balance, facing uncertainty and potential change.
Is Klay Thompson’s Era with the Warriors Ending?
In 2019, Thompson tore his ACL during the NBA Finals. Yet, the Warriors showed their loyalty by offering him a five-year, $189.9 million contract. Now, as he approaches unrestricted free agency, negotiations seem more like a battlefield. Anthony Slater of The Athletic reports that discussions between the Warriors and Thompson have stalled, with “nothing currently on the table.”
The NBA’s new collective bargaining agreement (CBA) is the elephant in the room. The Warriors have been over the luxury-tax threshold for four consecutive seasons, triggering the punitive repeater tax. The financial implications are staggering. Last season, their payroll hit an NBA-high $205.6 million with an additional $176.9 million luxury-tax bill. Despite this astronomical spending, they finished 44-38 and were ousted in the play-in tournament. The return on investment is underwhelming, to say the least.
Joe Lacob, the Warriors’ team governor, has expressed a desire to steer clear of the repeater tax. In February, he shared with Tim Kawakami of The Athletic that the team aims to reduce its tax liability over the next four years. This strategy involves making tough decisions, including potentially parting ways with long-time stalwarts like Thompson.
The new CBA introduces even harsher penalties for repeat offenders. For instance, a veteran-minimum signing of $2.1 million could cost a repeater team a total of $11.5 million if they exceed the tax line by $15 million. This figure skyrockets to $14.3 million for teams $20 million over the threshold. It’s a fiscal nightmare that the Warriors are keen to avoid.
Next season, the Warriors have $137.1 million in guaranteed salaries, nudging them perilously close to the salary cap even before considering Thompson’s contract. Extensions for young talents like Jonathan Kuminga and Moses Moody also loom large.
Lacob and the Warriors are particularly wary of crossing the first and second aprons, which impose severe restrictions on trades, sign-and-trades, and mid-level exception signings. Navigating under these aprons while maintaining a competitive roster is akin to walking a tightrope.
Despite ongoing talks, there remains a significant gap between what Thompson desires and what the Warriors are willing to offer. According to Slater and Shams Charania, the Warriors proposed a two-year deal worth around $48 million, a considerable drop from Thompson’s current earnings of $43.2 million per season.
The Warriors’ strategy appears to involve delaying Thompson’s negotiations, hoping he garners less interest in free agency and might accept a more team-friendly deal. However, there’s a growing sentiment that Thompson might seek a fresh start elsewhere, away from the friction of recent seasons.
As the Warriors contemplate this potential split, they must also consider the future of their dynasty. With Stephen Curry, Andrew Wiggins, and Draymond Green only secured through the 2025-26 season, a rebuild might be on the horizon. Young players like Kuminga, Moody, and others are expected to take on larger roles as the team’s veterans phase out.
In the end, if Thompson finds a lucrative offer elsewhere, the Warriors will face a critical decision: break the bank to retain him or allow a core piece of their dynasty to walk away. This predicament, fueled by the new CBA, could mark the end of an era for Golden State.
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