Warriors laidback on Klay Thompson's contract extension amid finalizing their final roster for 2023-24 NBA season

The Golden State Warriors and Klay Thompson are patiently dealing with the player's contract extension. Thompson is in the final year of the five-year, $189 million deal he signed in 2019. The five-time All-Star will become an unrestricted free agent next offseason.

The Warriors have been in talks with the player and his representatives over his extension, but the two sides haven't agreed on a deal. According to Warriors' beat reporter Anthony Slater, neither party has set a deadline.

"There isn’t a rush from either side, and there isn’t a deadline," wrote Slater. "It could theoretically be done in-season, though I’d expect serious discussions to come before that."

The Warriors have extended Draymond Green for another four years, while Steph Curry is under contract through 2026. Both players have proven reliable in their respective roles. However, the same can't be said for Thompson, who suffered back-to-back long-term injuries in 2019 (torn ACL) and 2020 (torn Achilles).

Klay Thompson missed two-and-a-half years due to that. He returned in January 2022 and was integral to the Warriors championship run. However, Thompson didn't play close to the level of his pre-injury self last season, especially defensively. On offense, he often struggled with his shot, especially during the playoffs.

The Dubs endured their first Western Conference playoff loss since 2015 last season after falling 4-2 to the Lakers. That raised eyebrows over their ability to stay a contender, with Thompson's slender decline being the focal point of their issues.

However, Klay Thompson could prove his critics wrong with a strong start to the next season. He could secure the max contract with a good showing in what could be the final long-term extension of his career at 33.

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Warriors would preferably want Klay Thompson to sign a team-friendly deal

The Golden State Warriors have had the highest payroll in the NBA in three of the past four seasons. The penalties weren't as hefty as now with the new CBA in effect. It's not just the luxury tax bills but also the roster-building restrictions that factor in, making things difficult for heavy-spending teams like the Warriors.

The Warriors have an active cap of $207.2 million, as per Spotrac. They are $89 million above cap space and $25.4 million above the super tax apron prohibiting them from acquiring players via a midlevel exception. The Warriors cannot afford to spend most of their flexibility on lucrative deals for their aging superstars.

With Steph Curry and Draymond Green locked long-term on lucrative deals, the Warriors will need Klay Thompson to take a pay cut to retain the core and have flexibility to improve the roster around them.