Trae Young, Washington Wizards agree to new 4-year, $212M contract: Source

Half a year can be an eternity in the NBA.

Seven months ago, as Trae Young and the Atlanta Hawks headed toward a divorce, Young’s value within the league had never been lower.

On Monday, Young and the Washington Wizards agreed to a new four-year, maximum-salary contract worth approximately $212.9 million, according to a league source. The fourth year of the contract will be a player option.

Young’s first-year salary is estimated to be $49.5 million, which amounts to 30 percent of the projected 2026-27 salary cap of $165 million. During the 2029-30 season, the final year of the contract, Young will earn $56.9 million if he accepts his player option.

Wizards officials would love it, of course, if Young can return to the form that made him an All-NBA Third Team player during the 2021-22 season. But at the very least, they place significant value on knowing that their team’s offense will start with him on most occasions, and that he will be around to shoulder a large portion of the scoring load while the team’s young players, who comprise the team’s long-term nucleus, continue to improve.

That Young will receive such large annual salaries no doubt will come as a shock to many observers, especially after Young’s reputation took a beating toward the end of his Hawks tenure. The NBA rumor mill, which is often inaccurate, predicted months ago that any new deal between Young and the Wizards would average no more than $40 million annually.

But in recent weeks, Wizards decision-makers became convinced that, with the NBA’s new anti-tanking measures compelling more teams to compete, Young was going to command maximum-salary contract offers from other franchises through either a straight free-agent signing or a sign-and-trade proposal.

Because the Wizards hold Young’s Bird rights, the Wizards had the latitude to offer Young up to a five-year contract with 8 percent annual raises. But Young’s new four-year deal instead features 5 percent year-over-year raises, the maximum year-over-year raise that any other team could have offered Young as a non-Bird free agent. For Washington, the difference between signing Young to 5 percent raises instead of 8 percent raises will amount to a total savings of $8.9 million over four years.

Wizards officials are not concerned that Young’s new contract will age poorly and prevent them from making future moves to improve their roster. Anthony Davis, who is due to earn $58.5 million in 2026-27, and Young are now Washington’s highest-paid players on its young roster, but the person with the third-largest salary is big man Alex Sarr, who will be paid the relatively small sum of $12.3 million this season. At the earliest, the Wizards do not expect to approach the dreaded first apron until the 2028-29 season, when any new rookie-scale contract extensions for Sarr and Kyshawn George would go into effect.

Plus, Wizards officials reason that Young, who will turn 28 years old in September, will remain in his prime years through the end of his contract. The onerous large contracts that age the worst — potentially Jimmy Butler’s current deal with the Golden State Warriors and Paul George’s current deal with the Philadelphia 76ers, for example — tend to be contracts in which players already are past their primes at the start of their contracts.

Young is by no means a perfect player. Undersized at 6 feet 1, and undeniably more focused on the offensive end of the floor, he tended to be a significant defensive liability throughout his Hawks tenure. That trend could worsen if he begins to lose a step (or two) over the next several years.

At the same time, though, Wizards officials have always known that their lineups would have to feature enough positional size and enough defensive-oriented players to compensate for Young’s shortcomings — in the same way that the defensive liabilities of LaMelo Ball, Jalen Brunson, Luka Dončić, Kyrie Irving and Donovan Mitchell (and others) are compensated for by their respective teams.

The Wizards’ decision-makers believe Davis and youngsters Bilal Coulibaly, Davis, George, Sarr and whomever they pick first overall in Tuesday night’s draft will develop into strong enough defenders to help Young.

Young appeared in only five games for Washington last season after his trade from Atlanta for CJ McCollum and Corey Kispert. That was a large enough sample size to demonstrate how his gravity and his passing skill could create open shots for his new teammates. George, Tre Johnson and others should receive more wide-open 3-point looks when Young directs the offense, and Sarr and Davis should feast on lobs from Young in pick-and-rolls.

Only 16 players in NBA history have averaged at least 20 points and 10 assists per game in the same season, according to Basketball Reference. Young is one of those players, and he has done it three times, during the 2022-23, 2023-24 and 2024-25 seasons. The only other players who have had at least three seasons of at least 20 points and 10 assists per game are James Harden (four times), Kevin Johnson (three times), Magic Johnson (three times), Oscar Robertson (five times), Isiah Thomas (four times) and Russell Westbrook (five times).

The franchise expects Young to make Washington’s offense more efficient and, because opponents will have to take the ball out of their net more often, give Washington’s defense more opportunities to set itself.

July 6 is the first day when new free-agent contracts may be signed and made official.