Warriors offered Klay Thompson two-year, $48 million extension last summer. He turned it down.

To give rookie Brandin Podziemski (or, if you prefer, 38-year-old Chris Paul) his minutes in the Warriors’ close defeat to the Suns, Klay Thompson was tethered to the bench Tuesday night for the final six minutes of the game. Why did Steve Kerr bench the four-time NBA champion? “I simply felt that I had to play the guys that were playing the best tonight.” Thompson admitted that he was correct in his assessment of his first-ever crunch-time benching.

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“I’ve been performing poorly,” Thompson acknowledged.

Thompson’s play isn’t helping his cause, and he is in his contract year. He is shooting a pitiful 34.3% from three, despite his average of 15.4 points per game. His true shooting percentage of 53.7 is substantially below the league average, and he has changed significantly as a defender since his unfortunate series of serious injuries. Prior to the season, the Warriors and Thompson discussed extending their contract, but their discussions came to a standstill.

Which raises the question of what Thompson’s next deal would entail. This bit was added by Shams Charania of The Athletic to The Bounce newsletter:

The Warriors and Thompson’s contract talks came to a standstill because of disagreements on Thompson’s pay and the duration of the extension. Before the season, I’ve been informed that the Warriors made Thompson an offer for a two-year contract worth about $48 million.

With Thompson’s current salary of $43.2 million, it seemed obvious that a pay cut was on the horizon—the only uncertainty was how significant. Thompson might have gambled on himself this season to show that he was worth more because he thought $24 million a season was too little. That tactic hasn’t worked out thus far. Granting Thompson two extra years aligned him with the contracts of Andrew Wiggins, Draymond Green, and Stephen Curry (Green and Wiggins have one player-option year beyond that). Thompson probably also wanted additional years and stability.

Because other clubs aren’t keeping an eye on the 33-year-old and considering poaching him, Thompson’s play this season hasn’t given him any leverage. Because of his background, the Warriors value him more than any other team, but given his current play, $24 million a year may be the best offer.

The transition from this Curry/Green/Thompson era has been anticipated by the Warriors front staff, but the team’s performance this season, aside from Curry, who has seemed to ageless, might accelerate its arrival. Would the Warriors like to continue using this lineup for a few more years? There will be some difficult choices to make.

Klay Thompson might serve as the prototype. What Mike Dunleavy and the Warriors front management are considering will be revealed by what he produces and with which team next season.