What to know about Draymond Green reportedly opting out of Warriors contract

Draymond Green is reportedly opting out, but the Warriors could still bring him back in free agency.

SAN FRANCISCO — In the moments after the Los Angeles Lakers eliminated the Warriors from the playoffs last month, Draymond Green said he wanted to “ride out with the same guys I rode in with.”

He reiterated on his podcast the following week that he wanted to return to the Warriors.

“I’ll say it right here for you, this isn’t it,” he said. “We plan on doing this again. That’s the plan, obviously, this is a business and things has to take place.”

News broke on Monday that Green plans to decline his $27.5 million player option and enter unrestricted free agency. That doesn’t mean Green is certain to leave the Bay Area, though.

There are rumblings that the Warriors, under new general manager Mike Dunleavy Jr., could shuffle their exorbitantly expensive roster to be more competitive after an early playoff departure and with stricter CBA rules afoot.

“We really want Draymond back,” Dunleavy said at his introductory press conference, echoing head coach Steve Kerr’s comments earlier this offseason.

Green has until June 29 to opt out officially. And even if he does, the door is wide open for the Warriors to sign him back. The opt-out means Green can field offers from other teams and potentially leverage any offer in his negotiations with the Warriors.

Here are some things to know as Green and the Warriors enter talks.

The ripple effect

The Warriors are within a contention window for as long as Steph Curry is with the team, and Green is seen as a pillar to keeping their model of success intact.

If Green officially opts out and signs with another team in free agency, the Warriors will likely need to find another defensive anchor and, preferably, a point forward who can let Curry operate off the ball. This is all to say: Green isn’t an easy player to replace, which is why the Warriors are adamant about bringing him back.

There is a world where another team offers Green a contract he can’t refuse and the Warriors don’t match. If Green leaves, a player like Toronto wing Pascal Siakam — potentially on the trade block for a Raptors team in flux — could fill the void and add more of a scoring threat to that position. But Dunleavy and the front office would likely have to put together a roster-altering offer to Toronto for Siakam’s services. Think some combination of Jordan Poole, Jonathan Kuminga, Moses Moody and future picks.

Green’s potential return and the terms will also determine how they approach extension talks with Klay Thompson, who will make a whopping $43 million next season in the final year of his five-year deal, and the financial restrictions or capabilities they’ll have in forming the roster this year and beyond.

The second apron

The Warriors are on the hook for $211.7 million in payroll for next year — and that’s without a potential Green contract — which is expected to be well above the luxury tax threshold that triggers “second apron” violations laid out in the new CBA.

Lucky for the Warriors, the most punitive new CBA rules don’t kick in until the 2024-25 and 2025-26 seasons. Violators this season lose the ability to use the taxpayer mid-level exception to add a player and won’t be able to sign a bought-out player making more than approximately $12 million.

Stricter punishments in future years — including some trade restrictions in ’24-’25 and an increase in repeater tax for ’25-’26 — may make the Warriors reluctant to give Green a lot of money in a long-term contract, instead hoping to retain some financial flexibility to add players while also working to get under the second apron over the next few years.

If Green stays, does anyone need to go?

Majority owner Lacob and Dunleavy seem to be on the same page about keeping the core — Curry, Green and Thompson — together for as long as possible. Green is known as a leading voice and connector crucial to the team’s storied success. But his credibility took a hit when he punched Jordan Poole in the face during a preseason practice last year.

The punch ruptured trust and soiled the team’s culture last season, many around the team have said. What bubbled to the surface was discontent from players such as Poole and Kuminga about playing time. Notably, Lacob pointed to the roster surrounding the core as an area for Dunleavy and the front office to address this offseason.

“I think the core group of guys, led by Steph Curry, is at an incredibly high level,” Lacob said. “For that reason, we feel we have a chance to always be knocking on the door. The rest of the roster going on down the line is a group that probably needs to be better about playing together and connecting, so that’s something we’ll look to solve for this offseason.”