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If the Golden State Warriors do not end up trading Klay Thompson in a package for Kevin Love - they've been firm about his exclusion in talks - their focus may soon have to turn to a contract extension for the fourth-year shooting guard.
Entering the fourth year of his rookie contract, Thompson and the Warriors can negotiate an extension that would kick in for 2015-16 up until Oct. 31 of this year. If an extension can't be reached by then, Thompson would become a restricted free agent next summer.
And it certainly seems possible that talks could hit an impasse, and Thompson will be seeking a maximum extension, according to a report from USA Today Sports:
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 Love deal.
A maximum extension for Thompson would start at 25 percent of the salary cap, a figure currently projected to be around $15.7 million, and because Steph Curry only signed a four-year deal, Thompson is eligible to be the team's "designated player" and sign a five-year pact.
It's unclear if Thompson will eventually be worth that kind of money - he's a great shooter, a good defender and is still just 24 - but the bigger issue is in the risk-reward trade-off. There is no incentive for the Warriors to lock up Thompson now at the maximum; at a figure less than the maximum, it's a justifiable risk, but the absolute downside if you're going to pay a player the maximum anyway is ruffling a few feathers and waiting until he's a restricted free agent, since you maintain the right to match any offer sheet he signs.
Of course, none of this really matters all that much until a Love deal is done or squashed entirely, but it's at least worth noting that Thompson's name is likely to remain in the news cycle until the season begins.