The Oklahoma City Thunder are gearing up to hand out maximum contracts to their All-Star duo, Jalen Williams and Chet Holmgren, starting next season. However, the NBA's recent announcement of a reduced salary cap means these rising stars will pocket $3 million less than anticipated. That's a tough pill to swallow.
Last summer was a dream come true for the Thunder. They clinched the NBA Finals, with Williams playing through a wrist injury to perfectly complement Shai Gilgeous-Alexander, while Holmgren dominated defensively. Securing these young talents with max contracts was an easy decision for the franchise.
Holmgren's contract is slightly below the absolute max, set at 25% for next season, as he didn't negotiate for the "Rose Rule" bonuses, which could have boosted his earnings with an All-NBA or Defensive Player of the Year award. These accolades are within reach, even if the salary bumps aren't.
Williams, meanwhile, inked a five-year max deal with Rose Rule provisions, potentially allowing him to earn up to $287 million if he made All-NBA this season. Unfortunately, missing most of the year made him ineligible, but he'll still earn the maximum for his experience level at 25% of the cap.
Just days ago, the salary cap for the 2026-27 season was projected at $166 million, setting Williams and Holmgren's starting salaries at $41.5 million, with an annual increase of 8%.
However, due to disruptions in local TV revenue, the NBA has adjusted the cap to $165 million. This shift, though seemingly minor, complicates matters for teams like the Thunder, who now face challenges staying under tax thresholds. The players will see their salaries adjusted down.
Williams and Holmgren will now earn $41.25 million next season, a $250,000 dip from expectations. While it might not seem drastic in the grand scheme, it's still a significant chunk. Instead of $243.46 million over their contracts, they'll earn $241.99 million-a $1.5 million difference.
This $3 million combined reduction affects both the players' earnings and the Thunder's financial commitments. While it may not seem earth-shattering, it's a reminder of how tied player salaries are to the fluctuating salary cap. Changes in revenue streams, like a TV network's bankruptcy, can send ripples through the league, impacting everyone involved.
Though these athletes are still set for life, it's a stark example of how even the biggest stars aren't immune to the business side of sports.