Klay Thompson Rumors: Magic Prefer Short-Term Contract for Warriors Star in NBA FA | News, Scores, Highlights, Stats, and Rumors

As the Orlando Magic try to upgrade their offense for the 2024-25 season, their interest in Klay Thompson could depend on what type of deal the five-time All-Star is looking for in free agency.

Per The Action Network's Matt Moore, the Magic are willing to offer Thompson a short-term contract with a higher average annual salary starting in the range of two years and $50 million total.

The relationship between Thompson and the Golden State Warriors is difficult to figure out at this point.

General manager Mike Dunleavy Jr. told reporters earlier this week they want Thompson back, but the business side of things has to be factored into their decision-making process this offseason:

"I think, look, I think I'm reasonable, I'm rational. That's how I'm always going to operate. But to say a guy like Klay Thompson who has meant so much to this franchise, to completely strip the emotion away from it, I think that's almost impossible. But this is a business. We'll talk through things and continue to talk through things. Like I said, we are hopeful but you know, we'll see. We've got to figure things out."

The Warriors are in a position to merely be over the cap this summer, as opposed to over the first or second apron that would restrict their ability to add talent to the roster. It would require them to let Thompson leave in free agency to stay in that position.

It's unclear what kind of deal Thompson can expect to receive when free agency begins on Sunday.

ESPN's Bobby Marks noted he would offer Thompson a two-year, $70 million contract, but he did note teams like the Magic and Oklahoma City Thunder could try to entice him by offering a third year.

The Magic are projected to have $35 million in cap space to use in free agency. They could also use a point guard to help facilitate, but Moore wrote the team is "comfortable" going into the season with Jalen Suggs as the starter.

Thompson would solve Orlando's need for three-point shooting. The Magic finished tied for the fewest three-pointers made (11.0) and tied for 23rd in three-point percentage (35.2) last season.

Even though Thompson is no longer at his peak, he is still an effective three-point shooter. He connected on 38.7 percent of his attempts from behind the arc last season.

A team like the Magic, which is loaded with defensive talent at the wing position, would take some of the pressure off Thompson on that end of the court and allow him to focus primarily on upgrading their offense.