New Jimmy Butler Rumors Update Warriors' Perspective on Contract Extension amid Injury Recovery

Jimmy Butler's contract and rehab from a torn ACL are going to be some of the closely-monitored storylines for the Golden State Warriors as they start to plan out their offseason after being eliminated from playoff contention with a loss to the Phoenix Suns in the play-in tournament on Friday night.

Per The Athletic's Nick Friedell and Marcus Thompson II, the Warriors "have made it clear" to Butler that he's part of their plans dating back to the February trade deadline:

"But as the summer plays out, that will likely be tested as the Warriors try to improve their roster. Are they willing to wait for Butler's rehab? Do they trust he will be close to the same player whenever he returns? The market for Butler won't figure to sizzle, since he'll be coming off an ACL injury. But he could have value as a huge expiring contract."

Butler's $56.8 million expiring salary next season gives the Warriors flexibility to potentially facilitate a trade for a star-level player if another club is okay with the health of his knee.

The report also notes the Warriors could be hoping that Butler, who has a history of causing problems when he wants a new contract, views their investment in him immediately after originally trading for him in February 2025 as a reason to extend some courtesy back to them:

"But in his previous stops around the league, many of his blowups centered around money and contracts. In Butler's mind, respect is displayed with a new deal. The Warriors gave him a fresh max extension when they traded for him. Will he be loyal to the organization now if it stands by him throughout his rehab?"

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This is arguably the first time in Butler's career that he doesn't seem to have much leverage. He will turn 37 on Sept. 14 and is coming off a major injury that has left his status for the start of next season unclear.

Butler's rehab and recovery timeline could play a huge factor in the Warriors' approach this summer. They were 23-15 in 38 games with him in the lineup, which is roughly a 50-win pace over a full season.

The Warriors' three-man lineup of Butler, Stephen Curry and Draymond Green had a plus-6.9 net rating in 452 minutes played. That's the same net rating the Minnesota Timberwolves' trio of Anthony Edwards, Julius Randle and Rudy Gobert had in 1,016 minutes.

Even if the Warriors believe in their ability to compete with Butler playing alongside Curry, they would be doing a disservice to their franchise if they didn't at least explore outside opportunities that might come up.

Warriors governor Joe Lacob and general manager Mike Dunleavy Jr. are reportedldy interested in exploring "large-scale moves" this summer after previously pursuing Giannis Antetokounmpo prior to the trade deadline.

Golden State was also reportedly close to acquiring Kawhi Leonard in February before the Los Angeles Clippers backed out.

Butler averaged 20.0 points on 51.9 percent shooting, 5.6 rebounds and 4.9 assists per game this season prior to tearing his ACL. The upside is still significant for the Warriors, but there could be many options available to them if they want to look around.