Klay Thompson made a splash in NBA free agency, stepping into new territory after 13 years with the Warriors. As the clock struck 6 p.m. ET on June 30, he entered the market for the first time and swiftly secured a new path.

Thompson engineered a sign-and-trade deal that landed him a lucrative three-year, $50 million contract with the Mavericks. In return, Golden State received a couple of second-round draft picks, and the Mavericks also sent Josh Green to the Hornets as part of the transaction.

While many expected Thompson to land in Dallas, choosing the Mavericks over the Lakers raised eyebrows. Despite Los Angeles’ interest and reported offers exceeding Dallas’, Thompson opted for a fresh start with the Mavericks.

Why Dallas over Los Angeles? Here’s the breakdown of his decision:

 

Why did Klay Thompson choose Mavericks over Lakers?

Klay Thompson’s decision to join the Mavericks over the Lakers boiled down to a mix of financial smarts and championship aspirations, according to ESPN’s Adrian Wojnarowski.

Initially, Thompson found the Lakers enticing, but the financial savings of living in tax-free Texas versus high-tax California and the Mavericks’ recent deep playoff run played significant roles in his choice.

The tax factor, often overlooked by fans, played a big part. In Texas, Thompson won’t face state income taxes, whereas in California, a hefty 13.3% would have eaten into his Lakers salary offer, significantly reducing its real value.

For instance, a reported $20 million per year deal with the Lakers would actually amount to around $17.34 million after taxes, compared to the Mavericks’ offer of $16.67 million, which is tax-free in Texas.

While NBA players do pay “jock tax” on income earned in other states, Thompson’s overall tax burden would still be less in Dallas than in Los Angeles.

Team Reported AAV Income tax rate Actual value
Lakers $20 million 13.3 percent $17.34 million
Mavericks $16.67 million 0 percent $16.67 million

Beyond taxes, the Mavericks’ proximity to a championship was a deciding factor. They made a deep run to the NBA Finals last season without a third superstar alongside Luka Doncic and Kyrie Irving. Thompson’s addition promises more scoring consistency than the Mavericks saw from Tim Hardaway Jr. during their postseason push.

In contrast, the Lakers, despite a respectable 47-35 record, bowed out early in the playoffs. LeBron James remains their standout player, but at nearly 40, questions linger about the team’s future without a young star to lead when James eventually slows down.

While Thompson would have bolstered the Lakers’ 3-point shooting, their uncertain future compared to Dallas, led by the younger Doncic, made them a riskier bet for Thompson.

Thus, on paper, choosing the Mavericks over the Lakers makes sense. Dallas must prove their Finals appearance wasn’t a fluke, but with Thompson on board, they have a stronger shot at contending for an NBA title in the near future.

 

Klay Thompson trade details

Mavericks receive:

  • Klay Thompson

Warriors receive:

  • 2025 second-round pick (least favorable from Denver or Philadelphia)
  • Mavericks’ 2031 second-round pick

Hornets receive:

  • Josh Green
TOPICS: Dallas Mavericks Klay Thompson Lakers Mavericks