The Warriors offered Klay Thompson a $48 million two-year contract earlier this season, but Thompson turned it down, and the news was broken by Shams, a well-known NBA reporter. At the same time, Shams also revealed that the Warriors and Thompson have a huge disagreement over the contract extension, and Thompson is likely to choose to enter the free market. At the moment, the contract offered by the Warriors is not considered a "squeeze", as Thompson has set a new career low in shooting and three-point shooting this season. Thompson's current contract is a five-year contract worth $1$900 million contract, and this season happens to be the final year of this contract.
In the 2019 NBA playoffs, Thompson suffered a serious injury with a ruptured cruciate ligament, but the Warriors still offered him a maximum salary contract. Although Thompson helped the Warriors win another championship during his five-year contract, he has also experienced major injuries such as a ruptured Achilles tendon and has seen his form drop significantly. This season, Thompson is averaging just 154 points, 4 rebounds and 2 assists while shooting just 397% and 34 three-point shooting3%, the scoring dropped to the lowest level since his rookie season, and the shooting percentage and three-point shooting percentage were career lows. As things stand, the Warriors' offer of a two-year, $48 million contract seems reasonable.
Of course, it can also be looked at from another angle, the Warriors once gave Draymond Green a contract worth $100 million for four years. Perhaps Thompson thinks his contract length and salary should be at least on par with Draymond Green's. But there's no doubt that Draymond Green is significantly more valuable to the Warriors on the defensive end and playmaking offense, and his form dip isn't as severe compared to Thompson. For Thompson, he may need to revisit his form. If he enters the free agency next summer in his current form, he may not even get a two-year, $48 million contract.
If Thompson chooses to leave, the Warriors' four-crown dynasty could fall apart.