Klay Thompson became a free agent for the first time in his 13-year NBA career when the clock struck 6 p.m. ET on June 30. It didn't take long for him to find a new home.
Thompson orchestrated a sign-and-trade that landed him with the Mavericks. The long-time Warriors guard received a three-year, $50 million contract as part of the move while Golden State received a couple of second-round draft picks for the trouble of facilitating Thompson's move to Dallas.
The Mavericks also sent Josh Green to the Hornets as part of the trade.
Dallas winning the Thompson sweepstakes wasn't a major surprise, but the veteran notably chose the Mavericks over joining the Lakers. Los Angeles was believed to be interested in adding Thompson to its LeBron James and Anthony Davis-led core, but the Lakers couldn't quite get a deal done despite reports they had offered the sharpshooter more money than the Mavericks.
Why did Thompson go to the Mavericks instead of the Lakers? Here's what to know about his decision.
NOH: Grading the Klay Thompson to the Mavericks deal
Why did Klay Thompson choose Mavericks over Lakers?
There were two primary reasons for Thompson choosing the Mavericks over the Lakers, per ESPN's Adrian Wojnarowski.
The Lakers were extremely intriguing to Thompson, but the financial savings from living in Texas over California and the fact that the Mavericks came within three victories of an NBA championship were big factors in his decision, sources said.
The former factor isn't something that fans often consider when assessing athlete contracts, but income tax rates can influence where players want to play.
In Thompson's case, he was given a choice between Texas, which doesn't have an income tax, and California, where he'd be charged a rate of 13.3 percent of his salary, per Tax Foundation. That would have significantly lowered the real value of the offer he received from the Lakers.
In fact, if Thompson had been offered the $20 million per year reported by Anthony Irwin from the Lakers, taxes would make the actual annual value of that deal much closer to what he'd make in Texas.
It isn't quite that simple — NBA players are subject to a "jock tax," which requires them to pay a portion of their salary to the states and cities they visit — but Thompson will still owe less overall by living in Dallas than 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 |
The reported Lakers offer would still rank better than the Mavericks', but that's where the second part of the equation comes in. Dallas seems closer to title contention than Los Angeles given the Mavericks reached the NBA Finals last season.
MORE: Who should the Lakers target after missing out on Klay Thompson?
The Mavericks managed to win the Western Conference despite not having a third star and consistent scorer behind Luka Doncic and Kyrie Irving. Thompson can provide them with that and give the team a more consistent scoring punch than Tim Hardaway Jr., who fell out of the rotation in the postseason, provided.
Comparatively, the Lakers finished the season a respectable 47-35 but lost in the first round of the NBA Playoffs to the Nuggets. LeBron James continues to be their best player, but he turns 40 in December and the team simply hasn't had enough quality shooting around him since their title run in the bubble back in 2020.
Thompson would provide the team with another high-end 3-point shooter, but the Lakers' lack of a young star could make them a candidate to regress if LeBron does, eventually, slow down. That may have made Los Angeles a riskier landing spot for Thompson than Dallas, which is led by the 25-year-old Doncic who is just entering his prime.
Thus, Thompson's choice of the Mavericks over the Lakers seems sensible on paper. The Mavericks will need to prove last season wasn't a fluke, but if they do, Thompson should give them a better chance to contend for a championship.
MORE: What number will Klay Thompson wear with the Mavericks?
Klay Thompson trade details
Below are the full details of the three-team sign-and-trade that landed Thompson with the Mavericks:
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