The Timberwolves and forward Jaden McDaniels have reached an agreement on a one-year veteran contract extension worth $40MM, agents Nima Namakian and Bill Duffy tell Shams Charania of ESPN (Twitter link).
McDaniels was already under contract for three years and $84MM, so his new extension will apply to the 2029/30 season, bringing his total salary over the next four years to $124MM. Because he has multiple guaranteed seasons left on his current deal, Monday was the deadline for him to sign an extension during the 2026/27 league year.
According to Michael Scotto of HoopsHype (Twitter link), it’s the first time in NBA history that a player with three guaranteed years left on a non-max contract has been extended.
As Charania outlines (via Twitter), there are a couple reasons why tacking on one year makes sense for McDaniels. For one, it puts him in a better position to sign another extension down the road — a player who receives a veteran contract extension can get a starting salary worth up to 140% of his previous salary, so when McDaniels negotiates his next contract, he’ll be able to get a 40% bump on top of his $40MM salary in 2029/30, rather than his $29.8MM cap hit in ’28/29.
Additionally, McDaniels will now have 10 years of NBA service under his belt before his next contract takes effect in 2030, so if he does reach free agency, he’d be eligible for a more lucrative starting salary at that time.
McDaniels’ maximum starting salary on an extension would have been about $41.74MM, so the Timberwolves got a slight discount on that figure. The former Washington standout, who could’ve signed for up to two new years, will become extension-eligible again in October 2028.
The Wolves are said to be bullish on McDaniels’ potential to take a step forward offensively this season playing alongside new starting point guard LaMelo Ball. The 26-year-old had a big preseason, averaging 14.8 points in 20.7 minutes per game over the course of four outings and posting a red-hot .606/.714/1.000 shooting line.
In his sixth NBA season in 2025/26, McDaniels averaged 14.8 PPG, 4.2 RPG, and 2.7 APG on .515/.412/.835 shooting in 73 games (31.7 MPG) while serving as Minnesota’s primary perimeter stopper on defense. The former 28th overall pick earned All-Defensive second team honors in 2024 and showed up on multiple All-Defensive ballots again in 2025 and 2026.
McDaniels and Ayo Dosunmu are now the only Timberwolves who have guaranteed salaries in 2029/30. Ball and Anthony Edwards are under contract through the ’28/29 season, while starting center Rudy Gobert holds a $38MM player option for ’27/28. Gobert will remain extension-eligible throughout the regular season if he declines that option as part of an agreement.