Contracts For Difference Explained

Free agent guard Klay Thompson has agreed on a three-year, $50 million contract with the Dallas Mavericks, ending his historic 13-year run with the four-time champion Golden State Warriors, sources told ESPN on Monday.

Thompson's deal was largely inspired by the chance to compete for a fifth title with the Western Conference champion Mavericks.

The deal, negotiated by his agent, Greg Lawrence of Wasserman, required a multiteam sign-and-trade that sends Mavericks guard/forward Josh Green to the Charlotte Hornets and two second-round picks to the Warriors.

Dallas is sending its own 2031 second-round pick in the deal as well as the least favorable of the 76ers or Nuggets' second-round pick in 2025, a source said. 

Lawrence and Thompson met with Mavericks GM Nico Harrison and VP Michael Finley at the Bottle Inn in Hermosa Beach, California, to dig into the details of a Thompson-Mavericks partnership.

The Lakers were extremely intriguing to Thompson, but the financial savings from living in Texas over California and the fact that the Mavericks came within three victories of an NBA championship were big factors in his decision, sources said.

In the final season of Thompson's remarkable 13-year Warriors career, his relationship with the franchise became increasingly strained over contract discussions and his looming free agency. His departure became more and more likely as the season progressed.

His unhappiness grew as his role with the team fluctuated throughout the season -- punctuated by him being pulled from the closing lineup in early February and moving to a bench role later that month.

Thompson, 34, averaged 17.9 points last season, his lowest since 2012-13.

His Warriors tenure ends with his place in franchise and NBA history cemented. The trio of Curry, Thompson and Draymond Green accounted for 518 wins in the regular season and playoffs, sixth most by a trio all time. Their 98 playoff wins together rank third in NBA history and their four titles are tied with Tim Duncan, Manu Ginobili and Tony Parker for the most by an All-NBA trio over the past 50 seasons, according to ESPN Stats & Information research. 

The Warriors wished Thompson well in a statement Monday, saying they look forward to retiring his No. 11 jersey.

"The amount of joy and happiness that Klay provided Warriors fans, Bay Area natives and Dub Nation supporters all around the world has been immense and cannot be minimized," the statement read. "His penchant for delivering in pressurized situations on the biggest stage, including many Game 6 heroics, has helped define a career.

"Klay's legacy will live on forever and we look forward to the day we can retire his #11 jersey at Chase Center where he will join a host of Warriors immortals, including those who helped shape this recent dynasty -- himself included.

"We thank Klay for his contributions and wish him the best as another chapter in his journey is written."

ESPN's Kendra Andrews contributed to this report.