The Oklahoma City Thunder are about to dish out maximum contracts to All-Stars Jalen Williams and Chet Holmgren starting next season. The NBA just announced a reduction in next year's salary cap, which will mean Williams and Holmgren are about to make $3 million less than they thought. Ouch!
It was a mountaintop moment for the Thunder last summer when they signed both players to maximum contract extensions. The team had just won the NBA Finals, with Williams playing through a nasty wrist injury to be the Robin to Shai Gilgeous-Alexander's Batman, and Holmgren being a versatile defensive force all over the court.
The Thunder signed their stars to max deals
Locking both young stars up for years to come was a no-brainer. What is more, the Thunder also negotiated Holmgren's contract to a lower level than the absolute max; he will make the maximum 25 percent next season, but he didn't negotiate "Rose Rule" language that could increase that number if he were to make an All-NBA team or win Defensive Player of the Year. Both awards are in reach for him, even if the salary increases are not.
Williams, on the other hand, signed a five-year max contract with the Rose Rule provisions, meaning if he made All-NBA this season he could have made up to $287 million over the life of the deal. He is ineligible for the award having missed most of the year, but he will still make the maximum for players with 0-6 years of experience at 25 percent of the cap.
A few days ago, the salary cap for the 2026-27 season was estimated to be $166 million; that would mean Williams and Holmgren's new deals would start at $41.5 million and go up eight percent each year.
The salary cap will be lower
Due to the chaos of local television networks, however, many teams are not bringing in their expected revenue, and the salary cap is set by the league's revenue. As such, the NBA just announced that the actual cap is expected to be $165 million.
The NBA has informed teams that the league is projecting a $165 million salary cap for 2026-27 -- $1M lower than previous outlooks due to a reduction in local media revenue, sources tell ESPN. Minimum salary $149M, tax level $201M, first apron $209M, second apron $222M also $1M…
— Shams Charania (@ShamsCharania) March 23, 2026
That doesn't seem like a major change, and in the grand scheme it is not. The Thunder and other expensive teams will have a more difficult time fitting under the first and second tax aprons. But the dollars add up for the players who will have their salaries adjusted down.
Williams and Holmgren will lose money
Jalen Williams and Chet Holmgren will now make $41.25 million next season, $250,000 less than expected. Compared to their entire deal, that's not a massive change, but it's a large chunk of money. And with the contract starting lower, the increases are lower as well. Overall, instead of $243.46 million over the life of the deal, they will each earn $241.99 million -- a difference of about $1.5 million.
That's $3 million less combined for each of them to save or spend; that's also $3 million less for the Thunder ot have to pay over the next five seasons. Significant seeming or not, it's a lot of money, and it will impact both players and the team.
Having maximum salaries tied to the salary cap results in this roller coaster until the contract is locked in. The estimates in a month could push it back up or smuch it even further down. And for Williams and Holmgren, it's their livelihood riding that coaster.
No one is crying for multi-millionaires, but the shockwaves of things like a television network going bankrupt impact many people - including the Thunder's young stars.