Timberwolves, Jaden McDaniels agree to 5-year, $136M extension: What it signals for team’s future

The Minnesota Timberwolves and forward Jaden McDaniels have agreed to a five-year, $136 million contract extension, McDaniels’ agents Nima Namakian and Bill Duffy told The Athletic on Monday. Here’s what you need to know:

In agreeing to the significant rookie extension, Minnesota commits to being a luxury tax team along with guard Anthony Edwards and centers Rudy Gobert and Karl-Anthony Towns.
The Timberwolves haven’t been a tax team in almost 20 years, and are staring at serious luxury tax payments moving forward.
McDaniels, 23, averaged 12.1 points, 3.9 rebounds and 1.9 assists per game through 79 starts last season, his third with Minnesota.

In agreeing to this significant rookie extension, Minnesota is committing to be a luxury tax team along with Anthony Edwards, Rudy Gobert and Karl-Anthony Towns. Wolves haven’t been a tax team in almost 20 years, and are staring at serious luxury tax payments moving forward.
— Shams Charania (@ShamsCharania) October 23, 2023

McDaniels a key figure in Wolves’ long-term plans

First and foremost, what a moment for McDaniels. He was the 28th draft pick in 2020. He came into the league with real questions about his game and his attitude after a volatile season at Washington. But from the minute he stepped onto the court in Minnesota, he has entrenched himself as a central figure in this team’s long-term plans.

McDaniels is starting to establish a reputation for being one of the best perimeter defenders in the league. Last season, he started to show more potential as an offensive player as well, shooting nearly 40 percent from 3-point range. After signing Edwards for the max this summer, the two young players are now attached at the hip in the Timberwolves universe. — Jon Krawczynski, Timberwolves senior writer

How the deal went down

This negotiation was a back-and-forth process the whole way through. The Timberwolves started discussions with McDaniels’ camp in July, but the parameters for a deal changed drastically when the San Antonio Spurs signed Devin Vassell to a five-year, $135 million deal. As late as Monday morning, there was still some question about whether this would get done.

Though he hasn’t been the scorer Vassell has been, McDaniels is still widely considered one of the best young two-way players in the league. He is a foundational piece of what the Timberwolves are building with Edwards, Towns and Gobert, and after a lot of negotiation between Wolves ownership and Namakian and Duffy, the two sides were able to come to an agreement on Monday afternoon. — Krawczynski

What’s next for Minnesota?

When practice concluded Monday, there was a loud ovation that could be heard as media members entered. It wasn’t long after that The Athletic broke the news that a deal had been reached. McDaniels is incredibly popular in the locker room, both for his quietly funny demeanor and his considerable skills. Edwards called him “the most important player on the team” when training camp began.

Getting this deal done ensures there will be no distractions for McDaniels and the Wolves as they enter an important season with high expectations. The group is set. McDaniels has been out of action since the first preseason game with a calf injury. But after practice, he could be seen getting a strenuous workout in. He is still questionable for the season opener on Wednesday in Toronto, but the team enters the season with high, high hopes. — Krawczynski

Backstory

McDaniels landed in Minnesota after being traded from the Los Angeles Lakers to Oklahoma City, then from the Thunder to the Timberwolves that same year.

In 212 career games with Minnesota, McDaniels has averaged 9.6 points, 3.9 rebounds and 1.4 assists per game while shooting 48.2 percent from the field.