Stephen Curry’s $136.7M Extension Explained: What Is The NBA’s Over-38 Rule?

Stephen Curry's next Golden State Warriors contract has a strange twist. The four-time champion can sign a two-year extension worth up to $136.7 million, but waiting could give him access to a three-year, $212.9 million deal in 2027. The reason is the NBA's Over-38 Rule, which changes how long teams can structure contracts for older players. Curry is entering the final season of his current Warriors deal and will make $62.6 million in 2026-27. He became eligible for a new extension on August 29, but there is no rush from either side. Curry has already said, “There's no question I want to be here the rest of my career, and I'm pretty sure that's going to happen.”

Stephen Curry's Over-38 Rule Limits His Warriors Extension

The Over-38 Rule is part of the NBA's collective bargaining agreement. It deals with contracts that run into seasons after a player turns 38. For cap purposes, salary from certain later seasons can be treated as deferred compensation and moved onto earlier years. The rule was created to stop teams from using long deals to get around cap limits.

For Curry, the rule matters because he is 38 and will turn 39 in March 2027. If he signs an extension now, the maximum reported option is two years and $136.7 million, keeping him with Golden State through the 2028-29 season. NBC Sports says the Warriors have left the timing and structure of the deal up to Curry.

That leaves Curry with a simple choice on paper, even if the decision is not simple for the Warriors. He can take the security of a new deal now or wait for free agency. Waiting could bring more money, but it also means playing the 2026-27 season before securing that next contract.

Stephen Curry's 2027 Decision Could Shape The Warriors' Next Move

The timing also matters for Golden State. If Curry waits, the Warriors keep his current salary on the books for this season without immediately adding his next contract. That could give the front office more room to plan for 2027, when several major roster decisions could come together.

If Curry reaches free agency in 2027, current projections put his possible maximum at three years and $212.9 million. Sports Illustrated and NBC Sports both reported that figure as the potential route if he waits. That is a much larger total than the $136.7 million extension available now.

The bigger story is that Curry has never suggested he wants to leave. His own words have made that clear. “There's no question I want to be here the rest of my career,” he said. So the question is not really about Curry choosing another team. It is about when he wants to sign and how the Warriors build around him.

For Golden State, that timing could matter almost as much as the final number. The Warriors have Curry, Draymond Green and Jimmy Butler as veteran pillars, while younger players such as Brandin Podziemski, Will Richard, Gui Santos and Yaxel Lendeborg represent the next stage. Curry's contract will help decide how much room the team has for both sides of that plan.

Curry's next deal, then, is not only about his salary. The Over-38 Rule has already narrowed the immediate options, while waiting creates a different financial path in 2027. With Curry wanting to finish his career in Golden State, the final decision could shape both his last years and the Warriors' next roster.