The Oklahoma City Thunder, for the most part, have concluded their offseason business.
They've successfully cycled in talent while dodging many of the immense luxury-tax penalties that were facing the organization this offseason, moving on from Luguentz Dort, Aaron Wiggins, and Isaiah Joe in separate trades while counting on players like Cason Wallace and Ajay Mitchell to enhance their roles in 2026-27.
There's some degree of risk here, but largely, everything seems relatively secure as Oklahoma City approaches the new campaign.
But there's one matter that hasn't been resolved yet—the extension for Wallace, who is entering his fourth season with the Thunder. Theoretically, Wallace doesn't need to be extended this offseason. Oklahoma City can wait and see how he performs on the final year of his rookie deal and allow him to enter restricted free agency next offseason.
But given how restricted free agency negotiations can weigh over a team's offseason plans, the Thunder would be much smarter to get Wallace locked down now. One would imagine there have been serious negotiations on both sides, and the two parties simply need to agree on a figure.
Their time, though, is rapidly running short to get the job done before the start of the new campaign.
Thunder need to extend Cason Wallace to enter next offseason with as much certainty as possible
Wallace, over his three seasons in Oklahoma City, has developed into one of the league's most disruptive perimeter defenders. With Dort now off the roster, he's almost certainly slated to move into the starting backcourt alongside Shai Gilgeous-Alexander. Mitchell has a chance to make his mark there as well, but he'll likely be utilized more extensively off the bench in a primary offensive role.
Right now, Wallace would likely command anywhere from $22 to $25 million annually on his next deal. The only reason the Thunder would be hesitant to commit that amount of long-term money to Wallace is the uncertainty surrounding his offensive upside.
Wallace certainly isn't a negative factor on that end of the floor. Across 77 games in 2025-26, he averaged 8.6 points, 3.1 rebounds, and 2.6 assists while shooting 35.1% from beyond the arc. He also had a stretch when both Gilgeous-Alexander and Jalen Williams were sidelined with injury where he flashed some skills as a lead ball-handler and a downhill scorer.
If the Thunder are going to commit a hefty portion of the salary cap to Wallace, they need to be absolutely sure he's a long-term fit on both ends of the floor. That's about the only argument for holding off on his extension, though.
If you think the Thunder faced a roster crunch this offseason, just wait until next year. Gilgeous-Alexander's contract will take a $20 million leap en route to hitting as high as $75 million annually in 2030-2031. Both Jared McCain and Mitchell will be eligible for extensions as well, and the Thunder won't have the same pieces that can be moved easily on the open market without sacrificing major depth.
Even if waiting on Wallace's extension saves them $2 or $3 million annually over the course of the deal, dragging out those negotiations into restricted free agency gives the Thunder markedly less certainty as they attempt to re-shape the roster around their stars again.
It's a different thing entirely if Oklahoma City believes there's a chance they may not extend Wallace. But if they're going to, now is the time to get it done— before it potentially becomes a distraction in training camp.
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