Klay Thompson and the Golden State Warriors have reportedly been discussing a contract extension. They remain far apart in their talks though, per NBA insider Shams Charania, via ClutchPoints.

“The Warriors and Klay Thompson have been discussing an extension,” Charania said on FanDuel's Run It Back. “But from what I'm told, there's a significant gap in years and money. The negotiations right now from what I'm told, they're at a dead point. Thompson wants much more than the Warriors are offering overall in both years and salary… As of right now, all signs point to Klay Thompson going into free agency in the summer.”

End of an era for Klay Thompson and Warriors?

Warriors' Klay Thompson in front. Warriors' Steph Curry, Warriors' Draymond Green on his left and right

The Warriors value Thompson. They understand how important he's been to their success over the past decade. Golden State has financial concerns though given how much money they are paying other players. Additionally, Thompson is 33-years old and has dealt with significant injuries in recent years.

It should be noted that Golden State does reportedly want to pay Thompson. The Warriors and Klay are simply not on the same terms right now. Still, Draymond Green and the Warriors dealt with a fairly similar situation last year and Golden State ultimately re-signed Green this past offseason.

Perhaps the Warriors and Thompson will come to an agreement next offseason.

“In an ideal world, the Warriors want to take care of him, they want to pay him,” Charania continued. “But they also want to see how the season goes and Klay Thompson, he's going to have a chip on his shoulder I think.”

The 2023-24 season will be an especially important one for Thompson. The Warriors star shooting guard needs to perform well and stay healthy. He's in his mid-30's and teams will be hesitant to give him a lucrative, multi-year contract if Thompson struggles or spends a lot of time on the bench with injury concerns.

However, Thompson already proved he's capable of both staying on the court and still performing at a respectable level during the 2022-23 campaign. Coming off three injury-plagued seasons, Thompson appeared in 69 games in 2022-23. He averaged 21.9 points per game on 43.6 percent field goal and 41.2 percent three-point shooting.

Klay Thompson is still a very good player and deserves to get paid. Nevertheless, the Warriors are clearly proceeding with caution.