The Warriors are worth $7.7 billion. Why won’t they pay Klay Thompson?

The Golden State Warriors appear to be a land of contrasts.

On the other end is a negotiations standoff involving two key figures who are heavily responsible for bringing the organization to those financial heights: head coach Steve Kerr and Splash Brother Klay Thompson.

Both Golden State mainstays are in the final years of their deals with the team. While the particulars of Kerr’s negotiations have been kept close to the vest, Thompson’s are more public and a case of financial disagreement. ESPN’s Adrian Wojnarowski reported earlier this month that there has been “no progress” on an extension for Thompson and that the two sides “are both still apart on years and money.” He added: “There’s a very real possibility that Klay Thompson goes into free agency next summer without a deal.”

It’s easy to point to Thompson’s decline, particularly in the postseason, as a reason the Warriors shouldn’t pay the guard, who will be 34 at the start of next season. But it’s just as easy to say the Warriors’ league-leading wealth shows that they absolutely could shell out for a guy who’s been a vital part of this modern NBA dynasty — and conclude they simply don’t want to.

However, it’s not that simple, thanks to the NBA’s pesky new collective bargaining agreement. 

Regardless of his rough stretch during last season’s playoffs, Thompson is absolutely deserving of a max contract because of his role in sending the team’s overall value to the moon. Prior to Golden State’s 2015 championship, Forbes estimated that the Warriors were worth $1.3 billion. That means that Thompson, alongside Kerr, Steph Curry, and Draymond Green, was part of a cohort responsible for adding an estimated $6.4 billion in value to the franchise. He should be rewarded for that, just as Green was this offseason with an extension worth $100 million.

Yet such a reward isn’t possible because of the punitive measures in the new CBA. The Warriors, already $25 million over the second luxury tax apron, per Spotrac, risk penalties like losing access to the taxpayer mid-level exception — which they used to sign Donte DiVincenzo last season — as well as the buyout market and trades where they take in more money than they send out.

All are important roster-building avenues the team will want to utilize if it wants to continue to squeeze every last drop out of Curry’s prime. When the new CBA was approved back in April, Green immediately blasted it as “blasphemous” precisely because of how it would punish teams like the Warriors.

Of course, the CBA could just be a convenient excuse for Dubs ownership to avoid giving Thompson his desired payday. The Warriors have filled only 13 out of a possible 15 roster spots so far to save on their tax bill, which owner Joe Lacob has previously lamented paying. Lacob has at least publicly maintained that he wants Thompson to remain a Warrior, even imploring fans to “chill” about the whole situation during a radio interview last week.

Should Thompson sign the super-max deal he reportedly wants that would pay him around $49.7 million in its first year — this is assuming a five-year max contract, based on the NBA’s estimated 4.4% growth in salary cap next season — that would put the Dubs at a $221.8 million payroll, which is nearly $50 million over the luxury tax threshold. That monster number would lead to upward of $220 million in taxes, according to Spotrac’s estimated luxury tax bill rate. It’s also worth noting that the salary figure is made up of 11 player contracts, assuming the Dubs exercise Jonathan Kuminga and Moses Moody’s player options, and Gary Payton II approves his player option to return next season. Combine those two totals, and you get over $440 million on salary payroll alone.

Based on that $765 million total revenue figure estimated by Forbes, that would leave about $325 million in leftover revenue. That sure seems like a lot of money left over to cover any number of expenses required for running an NBA franchise, but until Warriors ownership makes its books public knowledge, fans will never truly know.

If it’s not, maybe Lacob could dip into his own VC-lined pockets help to foot the bill. Or maybe Lacob will discover the limit to his desire to keep this historic dynasty together.