Why Kevin Durant re-signed with the Warriors for $7 million less than his max

Kevin Durant agreed to re-sign with the Golden State Warriors on a two-year deal worth $53 million. It was a move that followed Stephen Curry’s five-year, $201 million supermax contract to solidify a powerhouse Warriors dynasty for years to come.

But the deal with the Warriors conceivably cost Durant $6.8 million in salary for next season. Instead of taking a max contract starting at almost $32 million, he signed a contract that’ll pay him $25 million in Year 1. After that, the Finals MVP can opt out and become a free agent, where he can re-sign with the Warriors for a longer-term deal.

But Golden State needed its MVP to take a momentary pay cut to comfortably bring all of its pieces back next season. That had to happen if Golden State was planning to re-sign its core to compete for championships for at least the next three seasons.

With both Andre Iguodala and Shaun Livingston entering unrestricted free agency this summer, Golden State had to handle business. But that business could have been held up had Durant decided not to take a pay cut.

The absolute max the Warriors could have offered Durant would have started at a $34.5 million salary next season. But Golden State needed to have that much money in cap space to sign him, which would have inhibited the team’s ability to re-sign Iguodala and Livingston.

Instead, his max this season was his Non-Bird max of $31.8 million. From that amount, he took a $6.8 million cut and commanded a $25 million Year 1 salary.

That pay cut allowed Golden State to give Livingston three years at $24 million and shovel up $48 million over three years for Iguodala, keeping the integral reserves for a championship run intact.

Golden State also has its full taxpayer’s mid-level exception of $5.192 million, an amount the team is rumored to be interested in using on swingman Nick Young.

The pay cut also did a huge favor for Warriors ownership. Joe Lacob and Peter Guber pocketed around $25 million in salary and luxury tax fees they would have otherwise absorbed had Durant demanded his full max contract.

The former Most Valuable Player signed a two-year deal. If he opts into that second year, the Warriors will own his full Bird Rights. At that point, Durant will be 30 years old and able to command a max contract of his own.

But for now, Durant takes a momentary loss for a chance at permanent gain. The Finals MVP takes a $25 million salary, knowing he’ll accrue frequent trips to a championship series at least the next three seasons.

And when the time comes for the Warriors superstar to finally get the max contract he desires, even if Golden State doesn’t make the offer, someone will.