Why a short-term contract extension might be in Donovan Mitchell's best interest

The Cleveland Cavaliers traded for Donovan Mitchell ahead of the 2022-23 campaign with the intention of competing for an NBA championship. Two years into the Mitchell experiment they haven't come close, winning just one playoff series and looking overmatched in the two that they lost.

Two years have passed, and Mitchell only has one more guaranteed year on his contract before he can enter unrestricted free agency after the 2024-25 season. That one-year guarantee makes this offseason a huge one for Cleveland. They'd love to get an extension done but who knows if that's what Mitchell actually wants? If Mitchell refuses to sign an extension should the Cavaliers trade him?

NBA Capologist Yossi Gozlan takes a stance somewhere in the middle. He outlines why it could be in Mitchell's best interest to sign an extension, but not for the maximum amount. He pitches a short-term deal.

A short-term contract extension might be in Donovan Mitchell's best interest

The first reason why a short-term extension makes sense for Mitchell comes down to him keeping his options open. He could ask out right now, but where could he go that gives him a better chance to win? Do teams like the Miami Heat and Los Angeles Lakers have enough assets to get him? Are the Brooklyn Nets appealing enough? Waiting it out and seeing what he can do in Cleveland while simultaneously waiting for a better option to open up in the future might be in his advantage.

The second option comes down to money. He won't get as much of a guarantee, but if he plays his cards right, he can maximize his earnings. Gozlan explains that Mitchell can sign a two-year extension to get his service time to ten years, and then once he hits that benchmark his max value can be worth 35% of the cap instead of 30%.

Signing a two-year extension allows Mitchell to have a potentially quick out available if things go awry in Cleveland, allows him to seek out a better opportunity for him to win, and allows him to maximize his earnings. If Mitchell decides to sign an extension, it wouldn't be surprising to see it structured like this.