What Is a Team Option in the NBA? Know Jonathan Kuminga’s Sacrifice in Contract Negotiations

Offers, counteroffers, and a war of words only produced a stalemate for the Golden State Warriors. Cutting it close to October 1, when Jonathan Kuminga’s $7.9 million qualifying offer would expire, the two have reached for a new solution. However, the new two-year agreement with the Dub Nation at $48.5 million, which begins right in the 2025-26 season, comes with a sacrifice. Throughout the summer, the 22-year-old and his agent were angling for a player option, but instead, they received a team option.

What Is a Team Option in NBA Contracts?

According to the NBA’s website, it makes a team eligible to maintain a player on its roster for another year. Meaning, the team has the cards and has control over the player’s future. If a player commits to a 2+1-year kind of deal, the 1 being the team option, this can play out in two ways. In the third year, the franchise can exercise the right and extend the contract. But if they don’t, then the player’s contract ends at that point, and the player becomes a Free Agent.

Now, reverse the roles, we have the Player Option clause. Instead of the team, it gives a player the option to accept or decline a contract already agreed upon for the following season. If the player refuses to exercise this option (therefore opting out), the player becomes an unrestricted free agent.

How Does a Team Option Work in Rookie Contracts?

Team options work exactly the same in rookie contracts, with just one exception. All regular contracts can have only one option year. But in the rookie-scale contracts, contracts for first-round picks, those contain a team option for two years. Continuing the previous example. For Rookies, this becomes a 2+2 offer, giving them more financial stability at the start of their professional career.

Jonathan Kuminga’s Contract Situation Explained

Coming back to the Warriors forward, he was their 1st round overall 7th pick. Meaning, the team always liked the 22-year-old and his potential. On Aug 03, 2021, the Congolese native signed a four-year regular rookie scale contract totaling $24.9 million with Golden State. The first two seasons were guaranteed, and the next were options. In the next two seasons, the Warriors exercised their team option to lock in the player for the future. That brings us to this year, where there was a lot of drama.