By signing an extension, Thompson would not enter free agnecy for up to five years.
Klay Thompson and the Warriors are reportedly in talks regarding a possible contract extension, according to The Athletic.
If Thompson signed with a new team in free agency, The Athletic estimated that he could sign up to a four-year, $139 million deal. That would decrease the amount of money he could make over the next several seasons if the guard opts to stay with his current team rather than signing with a new one as a free agent.
Thompson will make over $18.9 million in the upcoming 2018-19 season, the last year on his Warriors contract.
By signing a four-year extension, Thompson could make around $102 million in those years, reports The Athletic. That would total $121 million with what he will make next season.
Thompson has played with the Warriors for all seven seasons of his career.
The Philadelphia 76ers and Los Angeles Lakers are mentioned as a team that could possibly be interested in Thompson, if he hit free agency.
The Warriors have advanced to the Western Conference Finals. Thompson is averaging 21.2 points, 2.3 assists and 4.1 rebounds during the playoffs this year.