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Avdija’s descending contract structure is a brilliant move by Wizards FO

ByCem Yolbulan|
TORONTO, CANADA - OCTOBER 20: Deni Avdija #8 of the Washington Wizards puts up a shot over Pascal Siakam #43 of the Toronto Raptors during the second half of their NBA game at Scotiabank Arena on October 20, 2023 in Toronto, Canada. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using this photograph, User is consenting to the terms and conditions of the Getty Images License Agreement. (Photo by Cole Burston/Getty Images)
TORONTO, CANADA - OCTOBER 20: Deni Avdija #8 of the Washington Wizards puts up a shot over Pascal Siakam #43 of the Toronto Raptors during the second half of their NBA game at Scotiabank Arena on October 20, 2023 in Toronto, Canada. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using this photograph, User is consenting to the terms and conditions of the Getty Images License Agreement. (Photo by Cole Burston/Getty Images)

It was announced yesterday that the Washington Wizards and Deni Avdija had agreed to a four-year fully guaranteed contract extension worth $55 million in total salary. This is a team-friendly contract that has a chance to be considered a bargain deal for the Wizards in a few years. Now, more details about the contract have emerged and it sheds a light on the front office’s plan for the future.

According to Bobby Marks of ESPN, Avdija’s contract is structured in a descending way. He will make $15.6 million next season, and his annual salary will drop to $11.8 million in the 2027-28 season. At that point, his salary will amount to only 7% of the estimated salary cap. For a player who is projected to be at least a rotation-level player, that is going to be an excellent-value contract.

This is a similar structure to the contract Kyle Kuzma signed this offseason. His deal starts at $25 million for this season and declines throughout the duration of it, ending with $19 million for the 2026-27 season.

So, what does this accomplish for the Washington Wizards?

It means that the front office wants to keep its financial flexibility in the future. They would much rather pay upfront when the team is not competitive and have cap space when the team is trying to contend in a few years. Having cap space right now is not valuable as the team is trying to figure out what it has in its young players. But having Kuzma and Avdija on great contracts while having additional cap space in a few years could be critical in signing free agents or trading for productive but overpaid players.

It also probably means that the Wizards will not rush the process. They are focused on three or five years down the line, as demonstrated by the length and type of contracts they are signing with their players. They want every player to be on tradeable contracts. Avdija and Kuzma’s deal structures make both of them more tradeable in a year or two than they would have been if they were on standard contracts with regular raises every season.

Once again, this is a fresh breath of air for an organization that previously lacked vision and creativity. For what it’s worth, this front office is at least thinking outside the box and executing a strategy. Let’s hope that it pays dividends sooner rather than later.

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