Chet Holmgren just signed a huge extension, but he potentially did the Thunder a favor while doing so

Chet Holmgren would have been signed Wednesday, with Oklahoma City Thunder on an agreement of five years of value potentially up to $ 250 million. This is a large number, of course, will make Holmgren and his family for life. And yet, earlier this week, his Draft-Kompatan, Paolo Banchero, Placed a similar extensionBut which could reach $ 287 million.

We say “could” here because of the nature of these extensions. Technically speaking, neither Holmgren nor Banchero are really eligible for the figures for which they have signed. A four -year -old veteran, as the two will do after this season when their new offers are triggered, is eligible for a new contract at 25% of the ceiling which is delivered with annual increases of 8%. Therefore, their maximum, at the moment, would amount to around $ 239 million over five years.

So why do we see more important figures in reports here? Due to the Derrick Rose rule, which mainly works as a version of the supermax for young players. If a player in the position of Banchero or Holmgren makes an All-NBA team or won the defensive player of the year during the last season or two of the three previous seasons, or wins the MVP in one of the previous three seasons, he becomes eligible rather for a contract up to 30% of the cap. This is where the figure of $ 287 million in Banchero comes from.

You have obviously noticed at this stage that Holmgren, a legitimate candidate of defensive player of the year having a reasonable chance to make an All-NBA team in the right circumstances, did not sign an agreement that could bring it up to $ 287 million. Although we did not yet know the exact structure of his contract and the incentives inside, we can at least deduct that he did not demand the complete bump of the rose rule from 25% to 30%.

This does not necessarily mean that he has left money on the table. We do not know if the Thunder was willing to offer the $ 287 million. We do not know how uncomfortable Holmgren would be to make them if they were not by prolonged negotiations or even a limited free agency next summer. It is money for which he is not even eligible, after all. But he signed it in early July, practically as quickly as he could, and he did it in a way that protected Oklahoma City from the most dangerous results linked to the CAP of his agreement.

Look at Cleveland as an example of the alternative. Evan Mobley signed a maximum contract of 25% the last season of the offseason which included mechanical stairs of the pink rule. Indeed, he won the defensive player of the year. This has significantly increased its silhouette, forcing practically cleveland in the second apron this season if the horsemen had not made drastic cuts. Cleveland, on his credit, is willingly entered into the second apron and even recognized Sam Merrill at a huge tax cost. But the difference between the 25% Max of Mobley and the maximum of 30% that he finally got was roughly what Memphis pays Ty Jerome next season. The rose rule, especially for expensive and winning teams, can have a tangibly depth impact of a team.

Orlando is now in a similar boat. Currently, magic 2026-27 rides the line of the second APRON. If the maximum of Banchero jumps from 25% to 30%, they moved well above without other wage reductions. One of the two things is about to happen for magic. In order for magic to have the alleged season they want to have, Banchero must probably play at an All-NBA level. Either he does it, and they are faced with the financial consequences that come with his pink rule bump, or he does not do so, and they are simply not as good as they hoped while facing the problems of apron. Their preference would obviously be the first, but it would probably mean losing more salary to compensate. Jonathan Isaac and his unsafe contract would have the most likely candidate at this stage, and he is an essential part of their defensive identity.

Thunder will certainly have a few Tax and debit problems in the coming years. They have not even signed Jalen Williams yet, and he could very well get the complete bump of the Rose rule. After all, he already made an All-NBA team last year. This does not make him eligible now, but it suggests that he is likely to do it again, so he might want it. Thus, Holmgren’s desire to unleash the rose rule, in particular with Shai Gilgeous-Alexander, the registration of supermax could be enormous for Oklahoma City’s efforts to maintain most of its support distribution.

In the modern mines field of aprons which is creating alignments in the 2020s, these are the types of breaks that teams need to support long -term winners. Look around the best teams in the League. It is not a coincidence that most of them involve a basic actor who took a little less to help the team or secure his bag without acrimonious negotiations. Jalen Brunson signed an extension below the market with the Knicks last summer. Alperen Sangun spread for less than the max in Houston, the last season, rather than waiting for a limited free agency, where he would have almost certainly obtained it. Each dollar that the Thunder saves on Holmgren -Williams – SGA Core is a dollar that he can spend for someone else who counts.

The reigning champions still have a long way to go before becoming the dynasty, so many people expect them to be. There will be difficult financial choices to come, and it is not as if Holmgren was on a contract significantly lower than the market here. But think of this lost-perceiving scenario that we covered for Orlando. The signature of Holmgren at this price is in a way the opposite. If he does not earn the eligibility for the pink rule, well, it probably does not disturb thunder much because they already know that they can win the championship with him at his current level. What if he does it? It is not in financially hamstring that it necessarily costs them a key article. It is a win-win situation for both parties here. Holmgren was paid, but he did it in a way that could ultimately help thunder to move forward.