Jalen Williams and Chet Holmgren Unexpectedly Lose $3 Million

Jalen Williams and Chet Holmgren Unexpectedly Lose $3 Million

The NBA announced a lower salary cap for 2026-27. The change reduces projected earnings for two Oklahoma City Thunder stars.

Cap revision and why it happened

The league now projects a $165 million salary cap for 2026-27. That figure is $1 million below earlier forecasts.

The drop stems from weaker local media revenue tied to regional television issues. The NBA informed teams of the revision on March 23, 2026, according to a Shams Charania update shared with Filmogaz.com.

How the Thunder contracts were structured

Oklahoma City signed Jalen Williams and Chet Holmgren to maximum extensions last summer. Those deals were agreed after the Thunder won the NBA Finals.

Williams secured a five-year maximum contract that includes Rose Rule escalation language. Holmgren’s extension was set at the standard 25 percent level without Rose Rule triggers.

Awards and eligibility considerations

Rose Rule language can increase a veteran’s max if they make All-NBA or win Defensive Player of the Year. Holmgren remains a realistic candidate for such awards.

Williams could have reached a larger total if he had earned an All-NBA nod. He missed most of the season and is therefore ineligible for that postseason award consideration.

Exact financial impact

Earlier projections put the cap near $166 million. That estimate produced initial salary calculations with a $41.5 million first-year pay figure.

With the revised $165 million cap, both players will start at $41.25 million next season. That is $250,000 less than previously expected for each player.

Both Jalen Williams and Chet Holmgren unexpectedly lost about $3 million combined over the life of their deals. Each will earn about $1.5 million less across the five-year contracts.

Contract totals and payroll effects

Prior to the cut, projections showed about $243.46 million over the life of each max deal. The new projection is roughly $241.99 million per player.

The lower starting salary also reduces year-to-year raises. That change affects both player earnings and the Thunder’s projected long-term payroll.

Broader team and league implications

Even a $1 million cap change alters luxury-tax calculations. The Thunder and other high-spending teams face tighter fits under tax aprons.

Salary caps are tied to league revenues. Local television revenue swings therefore ripple through player pay and team strategy.

The situation highlights the volatility of contracts tied to cap estimates. Small shifts in broadcast income can have multi-million-dollar consequences.