After a splashy summer that included the Jordan Poole-Chris Paul trade, inking Draymond Green to an extension, signing free agents like Dario Šarić, Cory Joseph and drafting rookies Brandin Podziemski and Trayce Jackson Jr. – new Warriors general manager Mike Dunleavy Jr. has a couple of big extensions to figure out over the next year.
Coach Steve Kerr and star guard Klay Thompson will both be entering the final seasons of their contracts in 2023-24, but it sounds like there’s no sense of urgency for Dunleavy to get anything done before this season.
“With those guys, the main thing is, it's good on both sides,” Dunleavy said. “I think there's a desire to extend or be back or you know make sure those guys are in the fold with the Golden State Warriors moving forward. I think both sides feel that way. I think when you're working off that idea, you can come to a deal and hopefully we can do that. In those scenarios, there's no real timeline in the immediate future that we have to abide by, so we'll continue to have conversations.”
While Kerr’s contract won’t count against the team’s luxury tax tab, a new contract for Thompson could push the Warriors above the second tax apron, which is territory that owner Joe Lacob has said he doesn’t want to reach.
While Lacob didn’t mind paying the cash penalties associated with going over the luxury tax line in years past, the NBA’s new collective bargaining agreement calls for the second apron violators to be prohibited from using a mid-level exception, including cash in a trade, trading first-round draft picks, using trade exceptions generated by aggregating salaries in a trade, carrying trade exceptions from previous years, etc.
“It is very penal, as everyone knows, to be above it,” Lacob told The Athletic’s Tim Kawakami in August. “I think our goal would be to be under it. You just lose too many options in terms of constructing your roster with draft picks and a variety of things. It is very difficult to contemplate not being under it. But, look, it’s a year-by-year thing, we’ll look at it.”
The second tax apron is currently set at $17.5 million above the salary cap and will be phased in the next two seasons. The Warriors are currently about $25 million above the second tax apron, so they’ll have some financial gymnastics to do to keep Klay on the roster. Klay is set to make $43.2 million as the 12th-highest-paid player in the NBA next season, but he might have to give the Warriors a hometown discount to keep the core together.
“He provides an element that's so unique to this team.” Dunleavy said. “He knows the ins and outs. He's been here as long as anybody. Continuing Klay's career here as a Warrior is really important to us.”
That’s why Chris Paul and his non-guaranteed $30 million salary for 2024-25 is such a big deal for the Warriors “optionality” going into the next off season, instead of having three more years of Poole’s extension on the books.
As for Kerr, both sides seem supremely confident they’ll get a deal done.
“I feel great about my position here,” Kerr said. “I want to be here. I know Mike and Joe want me here, and so I'm very confident something will get done. But I'm not stressed about it at all. You know, I'm perfectly capable of coaching whether I have one year left or an extension. Makes no difference. But I fully expect to be here.”
Kerr has led the Warriors to four rings, six Finals appearances and a .664 win percentage (467-236) since taking over in 2014. The director of the dynasty will likely be here as long as Steph, Klay and Draymond are still playing.
Continuity is king for Golden State and Kerr said it’s been an easy transition from Bob Myers to Dunleavy this offseason.
“Bob and I remain very close,” Kerr said. “We talk all the time. I think I could not ask for a better new partner than Mike given that Mike and Bob are best friends. You know, Bob is one of the best GMs in the business, as we know, and has been for a decade. He was able to groom Mike over the last few years. So there couldn’t be a better situation for me.”
