Timberwolves and Jaden McDaniels agree to one-year, $40 million extension

The Timberwolves and forward Jaden McDaniels agreed to a one-year veteran contract extension worth $40 million, according to Shams Charania, citing agents Nima Namakian and Bill Duffy.

McDaniels was already under contract for three years and $84 million, so the extension applies to the 2029-30 season and brings his total salary over the next four years to $124 million. Because he has multiple guaranteed seasons left, Monday was the deadline for him to sign an extension during the 2026-27 league year. According to Michael Scotto, it is the first time in NBA history that a player with three guaranteed years left on a non-max contract has been extended.

Adding one year makes sense for two reasons, as Charania outlined. A veteran extension can carry a starting salary of up to 140% of the previous salary, so McDaniels can negotiate his next deal off the $40 million figure for 2029-30 rather than his $29.8 million cap hit in 2028-29. He will also have 10 years of NBA service when the new year begins in 2030, making him eligible for a more lucrative contract if he reaches free agency.