Thunder spend big — but smart — with eye-watering contract extensions

The Oklahoma City Thunder have committed $822 million to secure their core trio of Shai Gilgeous-Alexander, Chet Holmgren, and Jalen Williams through the end of the decade. These extensions, finalized within three days, solidify the team's foundation for sustained success after winning the NBA championship.

Shai Gilgeous-Alexander, the franchise MVP and All-NBA first teamer, signed a four-year, $285 million extension.

Chet Holmgren, still on his rookie contract, agreed to a five-year, $250 million extension.

Jalen Williams, fresh off a breakout season, signed a five-year max rookie extension potentially worth up to $287 million.

Williams, the 12th pick in the 2022 draft, had a standout year, earning All-NBA Third Team and All-Defensive honors. He averaged 21.6 points, 5.3 rebounds, and 5.1 assists. In the playoffs, he scored 1,180 points alongside Gilgeous-Alexander, the fourth-highest playoff duo in NBA history. Williams also joined an elite group of players with at least 1,400 points and 100 steals last season.

Despite this significant spending, the Thunder remain below the NBA's punitive second tax apron and even under the luxury tax threshold. They became just the fifth team since 2007 to win a title without paying the luxury tax. This is credited to GM Sam Presti's management, as the Thunder won the championship as the fourth-youngest team in the league with the 25th-ranked payroll.

While rivals might hope ownership's historical reluctance to pay the tax or new CBA rules (like the second apron) could force roster changes, Presti's long-term planning and savvy cap management position the Thunder uniquely. They can keep their stars and avoid the second apron for at least the next three seasons if they choose. This situation highlights how championships are also won through front-office strategy.

The Thunder are not guaranteed another championship, but securing their Big Three gives them every advantage to pursue one, including the potential for back-to-back titles.