Klay Thompson contract demands could turn away main suitor

The Golden State Warriors seem uninterested in upping their offer to Klay Thompson but his demands for a long-term deal could force another suitor to rethink their pursuit.

According to Monte Pool of NBC Sports, Klay Thompson is seeking "an offer of at least three years" in free agency talks with teams around the league.

Thompson has declined over the last couple of years after two major knee injuries forced him to lose the physical edge that allowed him to be an elite two-way guard. He goes into free agency after averaging 17.9 points, 3.3 rebounds, and 2.3 assists per game on 43 percent shooting this season. At this point of his career, Thompson is likely viewed as a top-ish reserve who can provide 3-point spacing to any roster.

The former star will likely continue to decline with his best years of the new contract probably coming in the first year. The Orlando Magic can catch Thompson this offseason as the franchise will have upwards of $53 million in cap space.

This means that the franchise can bring in two other impact veterans along with the possible addition of Thompson after factoring in their $13 million mid-level exception.

While the Magic can certainly fit Thompson into their short-term plans, giving three years to the guard may be too much as each year of the contract can be at max a five percent decrease.

Klay Thompson' contract demands could turn away Magic

Orlando can afford the short-term implications of signing Thompson to a three-year, $90 million deal but it's hard to see how the Magic can justify giving the four-time NBA champion that third year commitment. If everything goes right for Orlando, the franchise will likely offer Paolo Banchero and Franz Wagner max contracts starting in the 2026-27 and 2025-26 seasons.

Part of the allure for the Magic's pursuit of Thompson is that the fact that the guard can be a piece moved in a major deal for a star in two years if his talent continues its rapid fall. Signing the guard to a three-year deal worth at least $28 million annually will likely compromise that plan.

The Magic may have second thoughts about Thompson, but the all-time Warrior may leave Golden State regardless. The Warriors seemingly have zero intention of offering what Thompson wants which means that he could end up in a place like San Antonio. The Spurs could use him for his spacing and championship experience benefiting Victor Wembanyama in the long term.

The only semblance of hope for Golden State is that a similar demand was made by Draymond Green last offseason and the Warriors were able to sign him to a long-term deal. Even if the long-term commitment is too much for the Magic, Warriors fans should still be worried about keeping the Splash Brothers together.