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Trae Young Trade Notes: Possible Extension, Trade Bonus, TPE, More

January 20, 2026 by Hoops Rumors

Once the trade sending Trae Young to Washington is officially complete, the Wizards and their new starting point guard will be open to exploring a potential contract extension, but it won’t be “top of mind,” reports ESPN’s Ramona Shelburne (Twitter link).

As Shelburne explains, both the Wizards and Young may take the opportunity to evaluate the situation and the fit before making a decision on their long-term future together. That process could extend to the 2026/27 season, since Young holds a $49MM player option that he could pick up if he doesn’t sign an extension and doesn’t want to test the free agent market.

If Young were to sign an extension with the Wizards in the coming months, it would require him to turn down his option and replace it with a new deal starting in ’26/27. An agreement between the two sides could tack on a maximum of three years to the current season.

If Young picks up his option in June, he would be eligible during the offseason to sign an extension that begins in ’27/28 and adds up to four new seasons to his option year.

Here’s much more on the first trade of the 2025/26 NBA season:

  • Young’s contract includes a 15% trade kicker, and there has been no indication that he won’t receive his bonus as part of the trade. However, trade bonuses don’t apply to option years and can’t increase a player’s salary beyond his maximum for that year. Young currently has a $45,999,660 cap hit for this season and his maximum salary would be $46,394,100, so if he receives his full bonus, he’ll get a $394,440 bump.
  • The Hawks are sending out more salary than they’re taking back in the deal and will generate a small traded player exception as a result. That exception will be worth $1,357,994.
  • Having cleared Young’s salary from their books for next season, the Hawks are considered likely to remain in pursuit of Mavericks big man Anthony Davis, ESPN’s Shams Charania said on Wednesday evening during an appearance on NBA Countdown (Twitter video link). As John Hollinger of The Athletic observes, CJ McCollum and Corey Kispert can’t have their salaries aggregated in a second trade prior to the February 5 deadline, so any Atlanta package for Davis ($54.1MM) would have to start with the expiring contracts of Kristaps Porzingis ($30.7MM) and Luke Kennard ($11MM), and it may have to include Zaccharie Risacher ($13.2MM) too.
  • The Wizards will open up a roster spot once the trade is complete, and Keith Smith of Spotrac (Twitter link) suggests it could be used to promote two-way player Tristan Vukcevic to a standard multiyear contract. Washington may wait on that until after the trade deadline, since Vukcevic won’t hit his 50-game limit for another month or so, and maintaining roster flexibility could help the team accommodate another deadline deal.
  • Kevin Pelton of ESPN thinks the trade could be a win-win for the Wizards and Hawks, giving both teams a grade of B for the deal. Zach Harper of The Athletic is far less bullish on the move from Atlanta’s perspective, assigning the Hawks a D-plus grade while giving Washington an A.
  • McCollum told Chris Haynes of NBA on Prime (Twitter link) that he “loved” his brief time in D.C. but is looking forward to joining the Hawks. “(The Wizards’) organization was great to my family and I,” McCollum said. “(Executives) Michael Winger and Will (Dawkins) did everything they said they would and kept their word from the very beginning. Love the city and they’re doing things the right way over there. Excited to get to the A and get to work. Very familiar with their style of play. Love the ownership group and front office. Good group of players.”

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