How Should the Warriors Handle Klay Thompson Conundrum?
The Golden State Warriors will be in a bit of a predicament with respect to Klay Thompson’s extension.
He’s a stud 2-guard who makes it rain from long range, and he’s morphed into the Warriors’ best perimeter defender. An argument could be made that he is the best two-way guard in basketball.
In addition, Thompson will only be 24 years old when the season tips off, and he established himself as one of Team USA’s best players during the FIBA World Cup.
Thompson’s always been able to shoot the ball, as evidenced by his career 41 percent mark from downtown, and he’s showed some growth during international play. The sharpshooter is putting the ball on the floor and finishing in traffic, which has never really been his forte.
By adding this layer to his game, Thompson could very well become the league’s premier 2-guard. As much as the Golden State front office will appreciate this development, it has to scare them a little given what it means going forward.
Dollar signs for Thompson.
USA Today’s Sam Amick offered this nugget in August:
"Meanwhile, Thompson's agent, Bill Duffy, has been seeking a max deal in extension talks with the Warriors as well. And while Golden State would surely prefer that the stance eventually softens and leads to a more palatable deal, the fact that he is younger means a max for Thompson would start at $15.7 million and still allow for more flexibility in the Warriors future than a [Kevin] Love deal.
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It’s one thing for Thompson to seek a max extension, but should the Warriors oblige?
Theoretically, they could play hardball and try to sign him for roughly four years at $9 million annually, which is what Lance Stephenson signed for with the Charlotte Hornets. Also, DeMar Derozan is making $10 million annually, and Thompson is close in talent to both. However, that seems unlikely.
As Amick mentioned, a max deal for Thompson presents a lower figure than Love. During the offseason, the Warriors had discussed a swap involving Love prior to the Minnesota Timberwolves trading him to the Cleveland Cavaliers.
The framework of the transaction centered around David Lee, Thompson, Love and Kevin Martin, per Yahoo Sports’ Marc J. Spears. However, members of the Warriors front office were split on whether to part with Thompson, according to a report by Marc Stein and Ramona Shelburne posted over at ESPN LA.
Ultimately, Golden State held firm and kept Thompson because he better suited the defensive culture of the franchise. Amick added:
"Their recent refusal to include guard and Timberwolves target Klay Thompson in the deal is rooted in this reality. Losing Thompson not only would leave [Stephen] Curry overexposed defensively in the backcourt but also is compounded by the fact that Love — much like incumbent power forward David Lee, who would head to Minnesota if this deal got done — isn't exactly known as a two-way player.
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The Warriors valued Thompson enough to pass on arguably the best power forward in the league. Golden State essentially said Thompson was more important to them than Love, who happens to be a max-level player.
I’m not sure the Dubs have any leverage at all here. Curry, the team’s best player, needs Thompson around to take on his assignments, and the offense seems smoother with Thompson on the floor because he stretches defenses thin.
"Every year there is some rumor in play and teams are trying to make a power move," Curry said to Yahoo Sports' Spears in July. "But they've made a decision, at least it seems like they have, that Klay is an investment they don't want to give up. That speaks volumes to what he has been able to do in his career and his potential. I'm happy that he's my backcourt mate."
Thus, Golden State will drop suitcases of cash on him without question, right? Well, not quite.
The Warriors have until October 31 to agree to an extension that would kick in for the 2015-16 campaign. If all the player and team options are exercised, Golden State would likely exceed the luxury tax line based on Sham Sports’ salary data.
The tax line is $76.8 million for the 2014-15 season, and the Dubs probably exceed it with the extension. Being a tax team means it becomes harder to add players because there are fewer salary exceptions available and harsher tax penalties on every amount owed to a Warrior, which also triggers the repeater tax.
It’s not ideal, but Golden State can probably manage for a year or two under these conditions. It’s worth mentioning, his teammates might have a small problem with it.
In the event management signed Thompson to a max deal, he would become the highest-paid Warrior.
Let that sink in for a second.
Thompson would earn more than Curry and Andrew Bogut. One could rationalize on some level that Thompson brings more to the table than Bogut, but it’s not exactly an open-and-shut case. Thompson is younger, healthier and more offensive-minded.
On the flip side, these Warriors haven’t been out of the first round sans Bogut.
As it pertains to Curry, he signed his current deal while dealing with lingering ankle issues during the 2011-12 season, which explains why he will “only” make $11.4 million during the 2015-16 campaign.
With that said, Thompson can’t make more than Curry. It could create a situation where the team’s best player feels undervalued and, worse yet, disrespected (also applies on some level to Bogut).
What other options do the Dubs have?
Bad ones.
Instead of signing Thompson to an extension, Golden State could allow him to play out his contract and then extend a qualifying offer in the 2015 offseason. He would become a restricted free agent, which gives the Warriors the right to match whatever contract offer Thompson signs with another team.
On the surface, this seems advantageous. But the issues previously outlined with respect to player salaries would take effect. Chemistry might suffer, which means the team would take a step backward.
Worse yet, Thompson might want out due to Golden State’s refusal to settle the situation early. That could prompt Thompson to sign a one-year qualifying offer and become an unrestricted free agent the following year (a la Greg Monroe of the Detroit Pistons). Once the 2-guard hits free agency, he can go to any team of his choosing.
Yikes!
The other alternative is simply to trade Thompson, which seems unlikely. By dealing him, maybe Golden State receives a young, promising player or a first-round pick in return.
Such a transaction would shake the foundation given that the franchise would be turning its back on the culture it’s created in the last few seasons. Keep in mind, the Warriors would be getting rid of a productive 24-year-old 2-guard.
It bears repeating that management chose him over Love, which means they can’t just ship him away now, as CBS Sports’ Zach Harper noted.
Decisions, decisions.
Golden State is lucky enough that Thompson loves his surroundings. When the San Jose Mercury News’ Marcus Thompson II pressed him on the fact he wasn’t traded for Love, the sniper offered:
"The Warriors believe in me. That makes me want to work that much harder. They believe in me and Steph, they believe in the team we have. I believe in us, too. I think we have all the ingredients to win a championship.
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Maybe that appreciation for not being dealt, and the fact the team has an intriguing roster, gets Thompson to back off from his initial asking price. If the Dubs can get him at about $11 million per year, they will have won the negotiation.
However, if Thompson is resolute in his demand, the Warriors will have to acquiesce. I realize that the extension comes with landmines, but ultimately, the team cannot let him walk.
A long-term commitment here becomes a loaded proposition, though. Curry and Bogut’s deals expire at the conclusion of the 2016-17 seasons, but the Warriors should immediately set their sights on discussing their next contracts once they’ve obtained Thompson’s signature.
Thus, whatever negative impact Thompson’s new contract will have, it will be mitigated by the front office’s ability to immediately discuss future compensation with its top players. It’s the best option available for the Dubs, and it’s the route the organization needs to take.
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