On Sunday night, Thunder fans rejoiced at the latest notification from ESPN’s Shams Charania, which detailed that budding guard Cason Wallace and Thunder agreed to a five-year contract.

The new deal is set to keep Wallace, one of the league’s top young defensive guards, in OKC til’ 2032, a major win ahead of Monday’s 5 p.m. deadline. There were reports that other teams would close in on Wallace in restricted free agency, where OKC doesn’t have a lengthy history of retaining players.

Inking Wallace’s contract was the last major fiscal domino for the Thunder for some time. Though now that the dust has settled on Wallace’s staying in OKC, its time to dive into how valuable the deal is for both team and player:

The contract details 

Wallace signed on to play for five more years in OKC, beginning next season and staying through the 2031-32 season. In total, he’ll be making $139 million, rounding out to $27.8 million annually.

For reference, Wallace’s fellow 2023 draftees in Ausar Thompson and Keyonte George both signed for $31 million annually, and Warriors’ contributor Brandin Podziemski signed for $22 million. Wallace fitting snugly between those players feels fair at this stage, especially given the rising costs of retaining both stars and role players.

There were rumors that teams would throw more than $30 million annually at Wallace in restricted free agency, which feels correct based on what OKC paid out.

Did the OKC Thunder overpay?

A loaded question we aren’t likely to firmly know the answer to for seasons to come, there’s room on both sides here. The Thunder landing below the $30 million line certainly feels like a win, though for $139 million total, Wallace is going to have to continue an upward trajectory.

All of Shai Gilgeous-Alexander, Chet Holmgren and Jalen Williams are locked in with OKC for the foreseeable future, meaning they’ll continue to make up the star trio. While Wallace doesn’t need to blossom into an All-Star to earn his new payday, he will need to improve offensive to make it all worth it.

Defensively, Wallace has more than proved himself, with one All-Defense selection under his belt. Offensively, he’s been more spotty, offering up 7.9 points per game for his career, on up-and-down 37% 3-point shooting.

There’s league-wide belief that Wallace can also show more on the ball than he has previously, handling, passing and play-making in the Thunder’s core. That development would certainly help to bridge the gap between output and pay. 

Given Wallace’s play-style, it doesn’t seem like the Thunder will ever massively regret doing the deal. In the least, he’ll offer elite defense for a system that prioritizes it, and he should be able to continue to hit triples alongside the team’s other heavy hitters. That alone is likely worth the price tag, not to mention the fact Wallace is just 22, and could swing things the other direction with even a little more additive to his game.

In the least, the Thunder retained in-house talent that's proven to work with its existing core, and has again given itself flexibility and optionality moving forward.