After leading the Oklahoma City Thunder to their first NBA title, the team's core players are being justly rewarded for their contributions. The first marquee deal went to Shai Gilgeous-Alexander, who secured the largest contract in NBA history, a staggering four-year deal worth $285 million. Following Gilgeous-Alexander's monumental contract, it's now Chet Holmgren's turn to shine.
Recent reports from Shams Charania of ESPN confirm that the Thunder and Holmgren have reached an agreement on a max rookie contract extension. This new contract could be valued at up to $250 million over five years. Notably, ESPN's insider Bobby Marks highlights that this extension would account for 25% of the NBA's salary cap, which currently stands at $165 million. This deal appears to be a straightforward five-year contract with no team or player options involved.
Before the new contract takes effect, Holmgren will play one more season under his rookie contract, which is valued at $13.7 million. Throughout the Thunder's recent playoff run, Holmgren showcased his immense value, averaging 15.2 points, 8.7 rebounds, and 1.9 blocks per game. However, last regular season was a mixed bag for the young talent as he averaged 15 points, 8 rebounds, and 2.2 blocks per game, but was limited to just 32 games due to a pelvic fracture.
In the context of Holmgren's injury history, the Thunder face a considerable risk. The No. 2 overall pick from the 2022 NBA Draft missed his entire rookie year due to a foot injury. Fortunately, he rebounded by playing 82 games in the following season and finished second in the Rookie of the Year voting. Unfortunately, he has encountered further limitations this season, making it crucial for the Thunder to ensure his health moving forward.
With both Gilgeous-Alexander and Holmgren secured, the focus now shifts to Jalen Williams, another standout from the 2022 draft class who is eligible for an extension this summer. Williams is also expected to receive a max extension after an impressive All-NBA season.
As these contracts come into effect in a couple of years (2026-27), the Thunder will face difficult decisions to maintain a balanced payroll while avoiding the NBA's luxury tax system. With the impending financial implications of these lucrative contracts, the Thunder must strategize carefully to keep their competitive roster intact without falling into the second apron of the salary cap.
