The Minnesota Timberwolves have found a way to reward one of their most important players without committing to a massive long-term extension just yet. Minnesota and Jaden McDaniels have agreed to a one-year, $40 million extension that keeps the All-Defensive forward under contract through the 2029-30 season. It is an unusual deal, but the timing makes sense for a team trying to remain a contender while reshaping its roster around Anthony Edwards and new arrival LaMelo Ball.
The agreement, first reported by ESPN’s Shams Charania, adds $40 million in guaranteed money to McDaniels’ existing contract and gives him a path toward an even bigger payday. For the Minnesota Timberwolves, it also buys another year of control over a player whose defensive value is difficult to replace — just as his offensive responsibilities could be about to grow.
Jaden McDaniels’ $40 Million Extension Has an Unusual Structure
McDaniels still had three seasons remaining on his existing five-year contract, worth approximately $131 million. The new agreement adds a fourth year at $40 million, taking his total remaining commitment to four years and $124 million. According to HoopsHype’s Michael Scotto, McDaniels is the first player to receive an extension with three fully guaranteed seasons remaining on a non-maximum contract.
The structure is notable because it gives both sides something valuable. McDaniels secures another $40 million while preserving the opportunity to negotiate a new extension as early as 2028. Under the reported terms, he could then qualify for a starting salary of up to 140% of the new $40 million figure — potentially $56 million — if the relevant rules and negotiations allow it. Without the new deal, the comparable calculation based on his existing $29.8 million salary for 2028-29 would have been about $41.7 million.
That does not guarantee McDaniels will receive another contract at that level. It does, however, give him a more favorable starting point for future negotiations. Minnesota gets to keep a key player through 2030 without committing now to several additional seasons at an uncertain future price.
Why the Timing Matters for Minnesota’s New-Look Roster
McDaniels is coming off the best offensive season of his career. He averaged 14.8 points, 4.2 rebounds and 2.7 assists in 73 games, shooting 51.5% from the field and 41.2% from three-point range. He also averaged 1.3 steals and 1.0 blocks, reinforcing the two-way value that made him such an important part of Minnesota’s defense.
His preseason performance has offered further encouragement. McDaniels averaged 14.8 points in just 20.7 minutes per game across four exhibitions, shooting 60.6% overall and 71.4% from beyond the arc. Those percentages are unlikely to hold over a full season, but the production suggests he may be ready for a larger offensive role.
That possibility matters after Minnesota traded Julius Randle and Naz Reid in its offseason reshuffle and brought in Ball. Edwards remains the franchise’s primary scoring option, while Ball’s passing could help create easier opportunities for McDaniels. The forward may not need to become a 20-point scorer to justify the investment, but consistent improvement on offense would make him even more valuable. The extension keeps that upside in Minnesota rather than allowing the relationship to approach free agency without another year secured.
The Timberwolves Are Betting on More Than Defense
McDaniels has already established himself as one of Minnesota’s most important perimeter defenders. His length, mobility and ability to handle difficult assignments give the Timberwolves flexibility against elite wings, while his improving three-point shooting makes it harder for opponents to ignore him on offense.
He also showed what he can do when given a larger scoring burden during the playoffs. McDaniels delivered 32 points and 10 rebounds in Minnesota’s series-clinching Game 6 win over Denver, helping the Timberwolves eliminate the Nuggets in the first round. It was a reminder that he can contribute more than defense when the circumstances demand it.
The new contract is therefore both a reward and a calculated bet. Minnesota has secured a proven defensive piece at a time when its roster is changing, while McDaniels has gained financial security and a potential route to a much larger future deal. The $40 million figure may look surprising for a player who has never been his team’s leading scorer, but the Timberwolves are paying for the combination of defense, shooting and room to grow. If McDaniels takes another step forward alongside Edwards and Ball, this could prove to be a particularly well-timed agreement for both sides.
Timberwolves Make a Surprising Bet on One of Their Own