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Reading: Chet Holmgren inks massive extension—could a hidden catch be part of the deal?
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Sports Daily > Basketball > Chet Holmgren inks massive extension—could a hidden catch be part of the deal?
Chet Holmgren just signed a huge extension, but he may have agreed to the lightning while doing so
Basketball

Chet Holmgren inks massive extension—could a hidden catch be part of the deal?

July 10, 2025 4 Min Read
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Chet Holmgren has reportedly signed a new five-year contract with the Oklahoma City Thunder, potentially worth up to $250 million. This deal ensures financial security for Holmgren and his family for life. Earlier this week, his fellow draft pick Paolo Banchero also agreed to a similar contract extension, with a possible value reaching $287 million.

These contract figures are based on certain conditions and rules. Neither Holmgren nor Banchero currently qualify for these maximum amounts outright. Both players, being four-year veterans, are eligible for contracts capped at 25% of the salary cap with an 8% annual raise after this season, placing their true maximum around $239 million for five years.

The larger reported figures come from the ‘Derrick Rose Rule,’ a Super Max contract option for younger players. If a player like Holmgren or Banchero makes two All-NBA teams in the last three seasons, wins Player of the Year, or secures an MVP award in that period, their contract cap can increase to 30%, pushing Banchero’s potential deal to $287 million.

Holmgren, though a strong defensive candidate with a reasonable chance to make the All-NBA team, did not sign for the maximum $287 million. The contract’s full details and incentives are not public, but it seems he did not ask for the top Rose Rule raise. This decision might reflect either the Thunder’s offer limits or Holmgren’s preference to sign swiftly, protecting the team from significant cap penalties following his trade.

Comparatively, Evan Mobley of the Cleveland Cavaliers signed a 25% max contract with the Rose Rules escalator, which led Cleveland into exceeding salary cap limits this season, forcing tough roster decisions and tax penalties. Similarly, Orlando faces potential financial challenges tied to Banchero’s rising max contract. These situations show how the Rose Rule has real financial impacts on team-building decisions for high-spending, competitive teams.

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Holmgren’s contract signing without pushing for the highest Rose Rule bump aligns with Oklahoma City’s strategy to retain key players like Shai Gilgeous-Alexander and maintain salary flexibility. This approach is crucial in the modern NBA salary cap environment, where managing cap space and roster composition carefully is key to sustaining long-term success.

Many of the league’s best teams have managed to build competitive rosters by negotiating below-maximum contracts for core players, freeing resources to improve elsewhere. Holmgren’s agreement appears to be another smart move by the Thunder, balancing fair compensation with team financial health.

While the Lightning still have a challenging road ahead to become a dynasty, Holmgren’s contract offers a beneficial scenario for both sides. It provides significant financial reward for him while allowing the team to remain competitive without crippling financial burdens. This balance could be a foundation for sustained success.

Fan Take: This contract news is significant because it shows how teams and stars are navigating complex salary cap rules to build championship-contending rosters. Holmgren’s deal highlights a growing trend where players and franchises prioritize long-term competitiveness alongside individual earnings, which could shape the NBA’s future landscape.

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