The Atlanta Hawks Have A Trae Young Extension Dilemma Awaiting Them This Summer

Once again, the Atlanta Hawks are at a crossroads when it comes to Trae Young.
Being at a crossroads when it comes to their franchise star is not exactly new to the Hawks. The night they drafted him, they decided to trade with the Dallas Mavericks to get him in exchange for Luka Doncic. While Doncic became the better player, Trae led the Hawks to one of their most memorable postseason runs in franchise history and outlasted Doncic. When it came down to choosing him or Dejounte Murray to remain on the team this summer, they chose him and sent Murray to New Orleans.
For a third time, the Hawks now have a big decision to make involving Young. After signing his rookie-scale extension contract of 5 years and $215 million back in 2022, Atlanta is coming up on a big decision to make. Young has one more year on his deal remaining before he has a player option for the 2026-27 season. If the Hawks do not offer him an extension this summer and he grows discontent with the situation in Atlanta, he could do a few different things.
1) He could demand a trade immediately before the 2025-26 season.
2) He could play out the 2025-26 season, decline the option and sign elsewhere.
3) He could play out the 2025-26 season, pick up the option and either sign on a deal after the 2026-27 season or use it to facilitate a trade. Using the option to negotiate a trade is something that James Harden did when he was trying to get out of Philadelphia and he eventually used it to make his way to the Los Angeles Clippers. It's not very common, but it is a potential avenue for the Hawks to go down. However, if it happens, a Young trade is probably going to happen the offseason before he has to decide on the option.
The reason why this is a real conversation is because there's been speculation over how content Young is with the situation in Atlanta. After the trade deadline, NBA insider Chris Haynes had this to say about Young's future with the Hawks:
“That guy is a fierce competitor. He wants to win. I’m saying, he wants to win. So the direction of the Hawks is very – I would say very unique considering they know where he stands and what he wants to accomplish.”
With respect to what the Hawks have achieved this season, it seems that 2024-25 is going to be another season of not being truly competitive. Young's time to ask for a trade is this summer - one year before teams have to give him an extension. Therefore, the question becomes two-fold: what would a Trae Young deal look like and are the Hawks making a smart decision by signing him to that extension?
What Does the Deal Look Like?
The first of those questions will become more straightforward to answer once the 2025-26 salary cap is officially determined. Young has 4 All-Star selections and one nod on the All-NBA Third Team. That All-NBA selection earned him an extra $35 million on his current contract. If he signs a new extension with Atlanta, it's fair to think that the deal would run for an additional four seasons and start at somewhere around 30% of the salary cap. For 2025-26, the salary cap is projected to be at a $154,647,000 cap. 30% of that would be around $46 million dollars.
The Hawks can also add player/team options to give or concede flexibility. However, it's a really expensive commitment for Atlanta to make. It places limitations on their roster flexibility that are in addition to the self-imposed restriction that the Hawks have to not exceed the luxury tax.
Should the Hawks Do This?
The question of whether the Hawks should do this deal is significantly more complex to answer. There has been a lot of discussion over the difficulties of building a team around a small point guard in the modern NBA. While Young is one of the best playmakers in the NBA and routinely elevates offenses, those teams do tend to be very reliant on him and struggle to find cohesiveness in his absence. That places a lot of pressure on him to be able to generate his own shot and survive on the court in a league that is reliant on do-it-all wings and big men who can make three-pointers.
This year, Young has been incredible as a passer. He's averaging a career-best 11.5 assists per game and has done a better job of elevating his teammates. However, he's also averaging career-worsts in FG%, 2PT% and turnovers. His 3PT% has dropped since last year and he's dealt with Achilles tendinitis all season. Young also oscilates between being a good and inconsistent shooter from deep on a season-by-season basis. He shot above 37% on high volume in the 2021-22 and 2023-24 seasons, but followed both up by shooting under 34% from deep on similar volume.
On defense, I'm of the belief that Young's defensive limitations are overblown. He's small, but he's improved his positioning and recognition on that end. He gets into passing lanes and simply isn't the same liability he was earlier in his career. He's a passable option, but is still subject to mismatches purely by being 6'1.
The Knicks have a good team around Jalen Brunson, who is of a similar size to Young. However, they have an elite offensively-tilted big man in Karl-Anthony Towns to draw attention away from Brunson and a excellent wing duo in Mikal Bridges and O.G Anunoby. Josh Hart is also one of the best role players in the NBA. It's just not a similar team set-up to the Hawks. Jalen Johnson is one of the most intriguing young players in the league, Onyeka Okongwu is a passable starting center and Zaccharie Risacher is developing into a contributor. Are any of those players going to be ready in time to take advantage of Young's best seasons and turn Atlanta into a true contender?
The answer to that is unknown at this stage. There are a lot of moving parts towards a Young extension and a good amount of factors are unknowns still. However, it's a conversation worth having because the decision is coming quicker than fans may realize. After another season where the Hawks seem to be destined for either the 8th seed or the play-in, Young might make some real noise in an effort to find a new team that gives him a more competitive future. This summer, those options seem more realistic.
One team that should be interested in Young is the Orlando Magic. They already have a pair of do-it-all wings in Paolo Banchero and Franz Wagner and a rock-solid defense. The problem is their lack of halfcourt creation and shooting issues. Young could solve a lot of those problems and feast off the attention Banchero and Wagner demand. Furthermore, the Magic can send Jalen Suggs to Atlanta as part of a package to match salaries.
Things change rapidly in the NBA and it's not impossible for the Hawks to elevate themselves into contender status. However, Young is going to have to make a decision on whether he wants to be a Hawk long-term and the front office needs to decide if they want him at his price. This time, the answer to that question may not result in them staying together.
Related Links
Should the Hawks Consider Trading for Kevin Durant in the 2025 Off-Season?
Currently No. 8 In The East, What Are Three Keys To An Atlanta Hawks Playoff Push?