The Washington Wizards are preparing to secure All-Star point guard Trae Young with a projected three-year contract extension worth $120 million, according to NBA insider Marc Stein.
The deal would structure Young's salary at an annual average of $40 million, with a deadline of June 23, 2026, when Young must decide on his current $49 million player option for the 2026-27 season.
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“Early projections on the likely ballpark for Young's new deal with the Wiz: $120 million over three seasons,” Stein wrote on The Stein Line.
The anticipated extension represents a lower starting salary compared to the maximum three-year, $160 million deal Young remains eligible to sign until June 30.
The restructured contract provides the franchise with greater financial flexibility.
The Wizards currently hold $189.4 million in total roster salaries, placing them $11 million under the $200.5 million luxury tax threshold.
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The front office adjusted its financial blueprint before the trade deadline by exchanging the expiring contracts of C.
J. McCollum and Khris Middleton to acquire Young and Anthony Davis.
General Manager Will Dawkins previously indicated to reporters during end-of-season media availability that the roster needed additional playmaking and scoring.
The financial reduction from Young's eligible max rate prevents immediate roster construction limitations under the first apron.
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Washington retains additional team-building assets, including the number one overall pick in the 2026 NBA Draft, where prospects AJ Dybantsa, Darryn Peterson, and Cameron Boozer remain under evaluation.
