Oklahoma City, OK – In a move that solidifies the team’s championship aspirations for years to come, reigning NBA Most Valuable Player Shai gilgeous-alexander has reportedly agreed to a monumental four-year, super-max contract extension with the Oklahoma City thunder. The landmark deal, first reported by ESPN’s Shams Charania, secures the face of the franchise through the 2030-31 season and is projected to feature the highest annual average salary in league history.
While initial reports place the total value around $285 million, the precise figure hinges on future NBA salary cap levels. Super-max contracts, also known as designated veteran extensions, are structured to pay players a percentage of the salary cap in the initial year, with predetermined annual increases. For Gilgeous-Alexander, this means his salary starting in the 2027-28 season will equal 35% of that year’s cap, followed by 8% annual raises through the 2030-31 campaign. Based on current projections, his annual earnings under the extension are expected to climb from roughly $63 million in the first year to nearly $79 million by the final season.
A Historic Deal Takes Shape
This isn’t just a standard extension; it’s a super-max agreement reserved for a select group of NBA veterans who meet stringent performance criteria. Shai Gilgeous-Alexander, already a multi-time All-Star and All-NBA selection, emphatically qualified by winning the league’s MVP award in the 2024-25 season. While he technically met performance benchmarks in 2024 by earning his second consecutive All-NBA nod, league rules prevented him from signing the extension until he completed his seventh year of NBA service this summer. Now eligible as a “designated veteran” with 7-9 years of experience and qualifying achievements, he can earn the maximum 35% of the salary cap.
The new contract adds four years to the two remaining on Gilgeous-Alexander’s current deal. Factoring in his existing salaries of approximately $38 million for 2025-26 and $40 million for 2026-27, his total projected earnings over the next six seasons eclipse $364 million. This massive payday underscores his value as one of the premier talents in the NBA today.
The Road to Supermax Eligibility
Gilgeous-Alexander’s ascent to super-max eligibility is a story of consistent, remarkable improvement. Originally the 11th overall pick in the 2018 draft by the Los Angeles Clippers, he was acquired by the Thunder in the 2019 trade that sent Paul George to L.A. Since arriving in Oklahoma City, he has evolved from a promising young guard into an undeniable superstar.
His 2024-25 season was nothing short of historic. At just 26 years old (turning 27 this month), he anchored the Thunder’s championship run, leading the team to the best regular-season record and ultimately its first NBA title since relocating to Oklahoma City. His individual accolades that year were equally stunning: he won the regular-season MVP, secured the NBA Finals MVP, and claimed the scoring title with averages of 32.7 points per game. Adding 6.4 assists, 5.0 rebounds, 1.7 steals, and 1.0 blocks per contest, all while shooting efficiently (.519 FG%, .375 3PT%, .898 FT%), highlighted his all-around dominance.
Gilgeous-Alexander became just the 16th player in NBA history to win both the regular-season MVP and Finals MVP in the same season, a feat not accomplished since LeBron James did it in 2012-13. His playoff performance was also elite, averaging 29.9 points and contributing significantly to the Thunder’s postseason success. These extraordinary achievements not only led the Thunder to a title but also solidified his position among the league’s absolute elite, making him unequivocally eligible for the super-max designation.
Financial Details and Record Breaking Pay
The reported $285 million value is a projection based on anticipated increases in the NBA salary cap over the coming years. The league recently projected a 7% cap increase for next season, followed by a potential 10% jump in 2027, which influences these figures.
When the extension kicks in for the 2027-28 season, Shai Gilgeous-Alexander’s salary is projected to be around $63.5 million. This will escalate annually, reaching approximately $68.6 million in 2028-29, $73.7 million in 2029-30, and a staggering $78.8 million in the final year, 2030-31. The projected average annual value of the extension is approximately $71.25 million, which reportedly sets a new benchmark for the highest annual average salary in the NBA, surpassing even recent deals like Jayson Tatum’s extension with the Boston Celtics.
Interestingly, while Gilgeous-Alexander’s annual average may be the highest, Jayson Tatum’s five-year, $304 million contract is reportedly the largest overall contract by total value. Under current league rules, players with two years remaining on their existing deals are typically limited to four-year extensions, preventing SGA from signing a longer, potentially higher total value deal now.
Securing the Future of OKC
One notable aspect of this agreement is the timing. Reports indicate Gilgeous-Alexander had the option to wait until next summer to sign a potentially larger five-year extension, projected to be worth closer to $370 million. However, he opted to sign this summer, securing a massive payday sooner and providing the Thunder with long-term certainty regarding their franchise player. This decision also follows reports that Gilgeous-Alexander, who parted ways with his agent earlier this year, now represents himself.
With their cornerstone player locked in, the Thunder can now shift their focus to other critical pieces of their young core. Both forward Jalen Williams and center Chet Holmgren are entering their fourth NBA seasons and are eligible to sign rookie scale contract extensions this offseason. Securing these rising stars alongside Gilgeous-Alexander is the next priority for the Thunder front office.
Thunder General Manager Sam Presti has consistently praised Gilgeous-Alexander’s development, noting that he “has gotten better every single year” with progress built on repeatable fundamentals.
Beyond the Numbers: Presti’s Perspective
Sam Presti offered a unique perspective on Shai Gilgeous-Alexander, likening him to a “basketball artist.” Presti believes SGA possesses the rare emotional intelligence needed to understand when and how to utilize his diverse skill set effectively on the court. According to Presti, Gilgeous-Alexander successfully integrates both the “left and right brain,” accessing both creative and objective thinking – a trait he sees in highly successful individuals across various fields.
This blend of talent, work ethic, and intelligence makes Gilgeous-Alexander the ideal player to build a franchise around. The Thunder are strategically positioned for sustained success, with their core players under contract for at least the immediate future and a significant war chest of future draft picks accumulated through past trades.
After their championship victory, Gilgeous-Alexander himself acknowledged the team’s vast potential. He stated, “We definitely still have room to grow,” emphasizing that many players on the roster are not yet in their athletic prime. This youthful energy and potential for further improvement make the Thunder an exciting team to watch in the coming years.
Frequently Asked Questions
How does Shai Gilgeous-Alexander’s supermax contract work?
Shai Gilgeous-Alexander’s supermax is a four-year extension starting in the 2027-28 season. It begins at 35% of the NBA salary cap for that season, with 8% annual increases thereafter. He qualified by meeting designated veteran criteria, including his MVP win and multiple All-NBA selections, along with completing his seventh year in the league.
What are the Thunder’s next moves after securing SGA?
With Shai Gilgeous-Alexander’s long-term future secured, the Oklahoma City Thunder are expected to focus on negotiating rookie scale contract extensions with key young players Jalen Williams and Chet Holmgren this offseason. Both players are entering their fourth NBA seasons and are eligible for extensions.
Why did Shai Gilgeous-Alexander sign his extension now instead of waiting?
By signing now, Shai Gilgeous-Alexander secures a significant, guaranteed super-max contract valued around $285 million. Although waiting until next summer could have potentially allowed him to sign a slightly larger five-year deal, signing now removes the risk of potential injury or performance dip and locks in his future with the Thunder sooner.
In conclusion, the Shai Gilgeous-Alexander super-max extension is a defining moment for the Oklahoma City Thunder. It secures their championship cornerstone for the foreseeable future, rewards his incredible individual achievements and team success, and signals the organization’s commitment to building a sustained contender around their unique superstar.
