McDaniels’ $40 Million Year Resets His Next Payday

Jaden McDaniels agreed Monday to a one-year, $40 million extension that keeps him with the Minnesota Timberwolves through 2029-30. Agents Nima Namakian of Innovate Sports and Bill Duffy of WME Basketball said the extra season sits on top of three years and $84 million already guaranteed, a four-year commitment of $124 million.

The new money does not hit this season’s books. It rewrites the number Minnesota has to beat when the next deal is legal in 2028, and it does that two nights before the Wolves open at Miami.

Minnesota Paid $40 Million for One Extra Season

McDaniels, 26, signed a five-year, $136 million extension in October 2023 with no options. That contract still covers 2026-27 through 2028-29. The new year is 2029-30 at $40 million, and the league’s transaction log showed the paper completed before Monday night’s deadline.

Monday was the last date he could extend during the 2026-27 league year, because more than one season remained on the old deal. Veteran extensions of that kind close the night before the regular season. Minnesota hosts Miami on October 21, and McDaniels is expected to play after sitting out the final preseason game for rest.

He could have added two new seasons. He added one. That choice is the whole deal. A larger add-on would have paid him more years at a lower starting point. One year at $40 million sets a new last salary, which is the figure the next extension has to use.

Why the Wolves Added Only One Year

Michael Scotto of HoopsHype said no player had ever extended a non-max contract with three fully guaranteed seasons still left. The CBA is built to stop that. A one-year or two-year deal cannot be extended at all. A three-year or four-year deal opens on the second anniversary of the signing. By tacking on 2029-30, Minnesota turned the remaining term into four seasons from Monday’s date, which is legal, and pushed the next window to October 2028.

HOW THE ONE-YEAR ADD WAS BUILT

• The deadline: Because more than one season remained, Monday was the last day of the 2026-27 league year he could sign.
• The cap on length: A veteran extension can run two to five seasons from the signing date, so two new years were possible and one was chosen.
• The next date: He becomes eligible again in October 2028, the second anniversary of this paper.
• The 10-year turn: If he waits until summer 2030, he hits free agency as a 10-year veteran, which raises the maximum salary tier.

Minnesota also got a small discount on this extra season itself. Had the club opened a new term off the $29.8 million due in 2028-29, the first extended year could have started at about $41.74 million. They wrote $40 million instead, then handed him a higher floor for whatever comes after.

140% of $40 Million Starts at $56 Million

Under the league’s veteran-extension math, the first year of a new term can be 140% of the last year of the contract, or 140% of estimated average player salary, whichever is greater, then rise or fall by 8% of that first-year figure. McDaniels will not be priced off estimated average salary. He will be priced off $40 million.

$40 MILLION VERSUS THE OLD LAST YEAR

That is a $14.26 million jump in the first year of the next deal before any raise. Three new seasons at the 8% maximum, starting at $56 million, come to about $181 million. He can also wait, take the $40 million in 2029-30, and test the market in 2030.

Forty million dollars for a 14.8-point season is the fee Minnesota accepted to move that starting number. The sticker shock is the point of the structure. The club is not paying $40 million this winter. It is buying a higher floor two windows from now, on a wing it does not want to lose beside Anthony Edwards and LaMelo Ball.

Edwards, Ball and a Tax Bill Already on the Books

The Wolves already live above the tax. Minnesota’s 2026-27 payroll sits at $218.3 million against a $165 million cap, a $200 million tax line, a $209 million first apron and a $222 million second apron. This $40 million year does not add a dollar to that 2026-27 total. It does mean McDaniels and Ayo Dosunmu are the only players with guaranteed salaries in 2029-30.

Ball arrived from Charlotte on July 10 with Josh Green. Minnesota sent Naz Reid, an unprotected 2033 first-round pick, first-round swaps in 2028, 2029 and 2030, and second-round picks in 2029, 2032 and 2033. Ball is due $40.8 million this season on the remaining years of a five-year, $203.9 million rookie max and is a free agent in 2029. He averaged 20.1 points, 7.1 assists and 4.8 rebounds in 72 games last season.

THE CORE ALREADY UNDER CONTRACT

Gobert can decline the $38 million option as part of a new agreement and remains extension-eligible through the regular season. Edwards is due a conversation of his own next summer. Duffy, who is on McDaniels’ team, also represents Edwards. Ball, Edwards and McDaniels now overlap through 2028-29, which is the first window that actually matters for this roster.

Game 6 Against Denver Changed the Leverage

The 6-foot-9 forward out of Washington just posted career highs: 14.8 points, 51.5% shooting, 41.2% from three, 83.5% from the line, 4.2 rebounds and 2.7 assists in 73 games, plus 1.1 steals and 1.0 blocks in 31.7 minutes. He was one of eight players to average at least a steal and a block. GeniusIQ logged the fourth-most defensive matchups against 2026 All-Stars. His only All-Defensive honor remains Second Team in 2023-24, though he appeared on ballots again in 2025 and 2026.

The playoff line rose to 16.3 points, 5.8 rebounds and 2.4 assists in 12 games, even as the jumper cooled to 44.3%. On April 30 in Game 6 against Denver he scored 32 points with 10 rebounds, 3 assists, 2 steals and a block, no turnovers, on 13-of-25 shooting in a 110-98 closeout at Target Center. Minnesota finished 49-33 and reached the conference semifinals for a third straight year, then lost to San Antonio.

I think Jaden is one of the best two-way players in the NBA, if not the best.

Anthony Edwards, last week

Edwards has also said he expects McDaniels to make an All-Star team this season. McDaniels, asked at camp, did not dodge it. “Yeah, I want to be an All-Star,” he said. “Who doesn’t want to be an All-Star? I put the work in. I feel like I can make it happen.” Four preseason games produced 14.8 points in 20.7 minutes on 60.6% shooting, 71.4% from three and 9-of-9 at the line, the kind of clip that makes a front office comfortable writing 2029-30 at $40 million before the opener.

October 2028 Is the Next Opening

The Lakers took him at No. 28 in 2020, the same draft that sent Edwards to Minnesota at No. 1. Oklahoma City took him on draft night and Minnesota took him two days later. He has never played for anyone else. The 2023 extension was the first big bet. This one-year add is the second, and it is timed to a roster that just swapped Reid for Ball and already pays the tax.

MCDANIELS IN MINNESOTA

1. November 20, 2020: Draft rights move from Oklahoma City to Minnesota two days after the Lakers pick him 28th.
2. October 23, 2023: Signs the five-year, $136 million extension with no options, starting in 2024-25.
3. 2023-24: Makes All-Defensive Second Team, his only All-Defensive selection.
4. July 10, 2026: LaMelo Ball’s trade from Charlotte becomes official, pairing a new starter with Edwards, Gobert and McDaniels.
5. October 19, 2026: Agrees to the $40 million 2029-30 year; the deal is logged before Monday night’s deadline.
6. October 2028: Next veteran-extension window opens, with a Year 1 cap of $56 million off the new last salary.

If he extends then, Minnesota can add up to three new seasons on top of 2028-29 and 2029-30. If he waits, summer 2030 is unrestricted free agency with 10 years of service, which is the 35% max tier under the CBA. Either path prices him as a core piece, not as the 28th pick who used to share the floor with Karl-Anthony Towns and Julius Randle.

He will wear the same jersey on October 21 at Miami that he has worn since 2020. The new money is four seasons away. The new leverage is not.

Frequently Asked Questions

When Can Jaden McDaniels Sign Another Extension?

October 2028, on the second anniversary of Monday’s signing, because the remaining contract now covers four seasons from that date. Three-year and four-year deals open then; one-year and two-year deals cannot be extended at all. He can also wait and hit unrestricted free agency in the summer of 2030.

How Does the NBA’s 140% Veteran Extension Rule Work?

The first year of the extended term can be 140% of the player’s salary in the last year of the old contract, or 140% of estimated average player salary, whichever is greater, and later years can move by 8% of that first-year salary. Supermax designated-veteran deals skip the 140% cap and start at 30 to 35% of the salary cap if the player qualifies.

Who Drafted Jaden McDaniels in 2020?

The Los Angeles Lakers took him 28th, traded him to Oklahoma City on draft night, and Minnesota acquired him two days later. He has played all 439 career games for the Timberwolves and was a Washington product out of Federal Way, Washington, listed at 6-foot-9 and 185 pounds, born September 29, 2000.

What Does McDaniels Still Make on the 2023 Deal?

The three remaining seasons of the 2023 contract are $25.8 million in 2026-27, $28.0 million in 2027-28 and $29.8 million in 2028-29, which is the $84 million already guaranteed before the new $40 million year. Those figures were set when he signed the five-year, $136 million extension in October 2023.

What Changes If He Reaches Free Agency in 2030?

Ten years of service moves him into the top maximum-salary band, 35% of the cap, up from 30% for players with seven to nine years. That is why the extra year through 2029-30 is also a service-time play, not only a 140% reset, if he decides to wait out the 2028 window and test the market as an unrestricted free agent.