Behind The Numbers, Why Donovan Mitchell Chose A Three-Year Extension With Cleveland Cavaliers

Donovan Mitchell strategically signed a three-year extension with the Cleveland Cavaliers.

Apr 20, 2024; Cleveland, Ohio, USA; Cleveland Cavaliers guard Donovan Mitchell (45) dribbles the ball in the second quarter against the Orlando Magic during game one of the first round for the 2024 NBA playoffs at Rocket Mortgage FieldHouse. Mandatory Credit: David Richard-USA TODAY Sports / David Richard-USA TODAY Sports

After months of speculation and a season full of trade rumors, the Cleveland Cavaliers have officially agreed to a three-year contract extension with Donovan Mitchell.

Fans may have been initially alarmed that Mitchell signed a three-year extension rather than a four-year supermax, which was rumored to be on the table. However, there’s a very specific reason for this decsison. 

Let’s break down Mitchell’s current deal and extension to better understand Mitchell's intentions and what all the numbers mean. 

Mitchell still has one more deal left on his current contract, which will be $34,848,240 for 2024-25, and his extension will kick in after that.

Here’s the full details of the extension:

2025-26: $46,394,100
2026-27: $50,105,628
2027-28: $53,817,156 (Player Option)

ESPN’s Bobby Marks shed some light on Mitchell's rationale for agreeing to the deal. 

Mitchell will have accumulated 10 years of service time heading into the 2027-28 season when he has his player option on the extension. This is a significant milestone for an NBA player because it increases the value of their next contract. 

May 11, 2024; Cleveland, Ohio, USA; Cleveland Cavaliers guard Donovan Mitchell (45) stands on the court in the second quarter of game three of the second round of the 2024 NBA playoffs against the Boston Celtics at Rocket Mortgage FieldHouse. Mandatory Credit: David Richard-USA TODAY Sports / David Richard-USA TODAY Sports

By signing a three-year deal right now, Mitchell can sign or extend for 35 percent of the salary cap on his next contract. (The salary cap heading into the 2027-28 season is projected to be $65.5 million.)

Mitchell will be able eligible to sign a four-year extension in July of 2026. 

A look at the Donovan Mitchell extension in Cleveland pic.twitter.com/V2TBkJu6c3

— Bobby Marks (@BobbyMarks42) July 2, 2024

The three-year deal or player option isn’t because Mitchell is hesitant about Cleveland's direction or that he's already leaving the door open down the line. It’s strictly a business decision for the All-Star guard.

Mitchell is happy to be in Cleveland, and if you don’t believe that, check out how he announced the extension on social media.