The Minnesota Timberwolves inked a one-year, $40 million extension with Jaden McDaniels just before the extension deadline. This new contract means that McDaniels will be under contract until 2030. Notably, McDaniels was eligible for a two-year, $87 million contract.
I was initially a bit surprised by this being a one-year contract. However, when you peel back the layers, it's truly a win-win for both sides.
Jaden McDaniels' extension makes sense for the Timberwolves
McDaniels is one of the league's best perimeter defenders, and after a season in which he averaged 14.8 points, his offensive game is growing. With LaMelo Ball in the mix, McDaniels should reach another level on offense, and the preseason showed that the Wolves are ready to empower him.
Simply put, any extra year that you can keep McDaniels under contract for is a win. And this is slightly under the AAV they could have signed him for, making it an even clearer win for the Wolves.
While I would've argued that securing him for an extra year would've been ideal, this deal gives Minnesota time to evaluate whether McDaniels is worth a long-term contract worth over $40 million. To be clear, I think he is, especially if he reaches another level on offense, but in the apron era, deals of this magnitude can't be taken lightly. Therefore, Minnesota mitigated some risk with a one-year extension.
Regardless, McDaniels being extended with three years left on his current contract underscores how much the Timberwolves value him. In fact, per Michael Scotto, McDaniels is the first player in NBA history to secure an extension with three fully guaranteed seasons remaining on a non-max contract.
Moreover, with how the cap is trending, McDaniels' salary in 2029-30 will be worth the equivalent of $34.6 million this season, per Dane Moore. Simply put, it's hard to have an issue with this deal from the Wolves' perspective.
McDaniels keeps his options open with his new extension
From McDaniels' perspective, he's primed to make $40 million in the 2029-30 season. It's hard to complain about that.
Crucially, though, McDaniels has some extra flexibility with this new contract. Shams Charania reported that he can negotiate a new contract in 2028 with a starting salary of up to 140 percent of his $40 million salary. As such, this could lead to him earning a contract worth $56 million a year down the road.
Alternatively, McDaniels could enter free agency in 2030, possibly securing a long-term max contract. Whether McDaniels earns an extension in 2028 or waits until 2030, he maximizes his long-term earning potential with this extension, even if he technically could've gotten paid more from an AAV standpoint in this extension cycle.
As mentioned earlier, McDaniels is poised for more offensive responsibilities this season. He is already an indispensable piece of the Wolves' success, as a perimeter defender and tertiary creator. With another offensive leap, though, he could become an All-Star-level player, which makes a possible max contract more likely than it may sound.
Ultimately, this extension is good business for both sides.
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