Warriors Rumors: Klay Thompson Opened Contract Talks With GSW

The Golden State Warriors have begun talks on a contract extension with Klay Thompson.

In an appearance on The Lowe Post podcast, ESPN's Ramona Shelburne reported that the two sides have opened up a conversation about an extension but the process will be slow moving.

"My understanding is that they have opened contract extension talks with Klay Thompson," Shelburne said. "This is a slow process. This idea that he's been eligible for a while and they haven't done anything...no, they've started talking. They've exchanged proposals. There's no hurry to these discussions. The optionality goes both ways. Not necessarily he's trying to leave, but just the optionality that he didn't have a great year last year. It behooves him to have a great year this year and he becomes more valuable if he does."

Shelburne elaborated by saying that the years on the contract will be similar to that of Draymond Green, who agreed to a four-year deal in June. She also said that the monetary details are what is holding Thompson's extension up as it will depend on how it impacts Golden State's luxury-tax penalties and the team-building restrictions an extension would come with from the new CBA.

Thompson is entering the final year of his current contract and is set to make $43.2 million. This comes after he averaged 21.9 points, 4.1 rebounds and 2.4 assists in 69 games. It was his second year post a two-year injury hiatus and his 69 games played was very promising.

Still, the Warriors are not necessarily in an ideal situation in regard to the salary cap. The team has negative cap space and will pay a hefty sum to the luxury tax. This will be increased in the new CBA as the Warriors will have significant restrictions due to being over the tax apron and Thompson's eventual contract will cause more significant money to be tied up in a few players.

The Warriors clearly want to keep Thompson, Green and Steph Curry together for the entirety of their career, but it could be easier said than done. Having Chris Paul likely come off of the books at the end of the season will be a huge help and having Thompson play the upcoming season with a somewhat uncertain future is not the worst outcome.

Still, getting a deal done would make life easier and the fact that both sides appear interested is surely a step in the right direction.