He also has a player option in 2023, per Shams Charania of The Athletic and Stadium, making him the "first Warriors star in dynasty to receive player option on a long-term deal."
The extension will kick in for the 2020-21 season and pay him "$22.2 million, $24 million, $25.8 million and $27.6 million" over the four years, according to Adrian Wojnarowski of ESPN.
It's been a busy offseason for the Warriors, who also inked Klay Thompson to a five-year, $190 million max contract and acquired D'Angelo Russell in a sign-and-trade with the Brooklyn Nets, agreeing to pay him $117 million over four seasons.
Stephen Curry is under contract through the 2021-22 campaign and is set to make $129 million over the next three seasons. The Warriors have assembled another very talented and expensive Big Four.
While Green's extension may seem a bit low, given the contracts other players signed this offseason and his importance to the Warriors, it was the most money the team could offer him, as Danny Leroux of The Athletic wrote:
"While the more recent 2016 CBA opened things up a little through the Designated Veteran system, players who do not qualify for the supermax are limited by their current contracts. These normal veteran extensions can only contain a 20-percent raise on the player's salary in the final season before the extension kicks in. Since Green will make $18.5 million in 2019-20, his extension could only add four seasons starting at $22.2 million, leading to the $99.7 million overall figure. In all likelihood, that limitation helped produce an agreement, since the Warriors absolutely could not offer more right now, creating less contentious negotiations and easier optics."
Green could have waited until becoming an unrestricted free agent after the 2019-20 season to sign a new deal, either with the Warriors or elsewhere, though playing the waiting game would have carried significant risk for the 29-year-old. An injury, for instance, could have severely limited what teams would have been willing to offer him, similar to what has happened to DeMarcus Cousins the past two offseasons.
And with many teams making their big splashes this offseason—or keeping themselves flexible for the 2021 offseason, when a number of talented players could hit free agency—Green may not have seen enough of a market to demand more than the contract he agreed to with the Dubs.
The Warriors may also give Green the best chance at competing for championships once Thompson returns from his ACL tear. And securing a player option and a trade kicker was a solid addition for the veteran forward.
Overall, the deal makes sense for both sides and should keep the Warriors relevant for years to come. Kevin Durant may be gone, but Golden State should remain a threat so long as the core of Curry, Thompson and Green remains together and productive.