The Golden State Warriors can finally breathe easy with Steve Kerr set to return next season.  They settled the coaching situation, but the front office has a lot more to do now. After the disappointing 2025-26 season that ended with a 37-45 record, they have a roster to reshape. Jimmy Butler is out next season with his Achilles injury, and Stephen Curry’s timeline screams urgency. And somewhere in those tough conversations, Draymond Green’s next step becomes impossible to ignore.

Warriors GM Mike Dunleavy Jr. made it clear last week. “The ball is in his court in terms of returning,” he said last Friday during the annual end-of-the-season news conference at Chase Center. “I think we’ve had discussions where we want him to finish his career as a Warrior. He kind of feels the same way. I would expect him to be back, but it’s his call on that.”

As you can guess, the decision now rests with Draymond. He can activate his $27.7 million player option for the 2026-2027 season, which could immediately settle the situation. Now, according to insider Tim Kawakami, the Warriors are quietly trying to figure out the complicated financial situation around the 2017 Defensive Player of the Year.

At present, the Warriors are staring at a massive financial crunch heading into the next season. They already have roughly $278.3 million tied up in salary commitments. And this is the highest figure in the NBA. That also leaves the franchise about $113.3 million over the salary cap before filling out the roster. However, the team still sits around $27.0 million below the 1st apron and nearly $40.0 million below the 2nd apron, giving the front office some room to maneuver.

Therefore, Green’s player option puts the decision in his hands, but the front office would still love to lower that number. The reason is pretty clear. Getting below the luxury tax line would give the Warriors much more room to rebuild the roster while Stephen Curry’s championship window remains open.

At the same time, Draymond Green reportedly likes the idea of skipping the option altogether and locking in a longer stay with the Warriors. However, Green may not find a massive market waiting outside the Bay Area. Teams with cap space will be careful. While contenders could view him more as a $15.1 million non-taxpayer mid-level exception target than a blockbuster signing.

Meanwhile, the Warriors may already be sitting on the table for Draymond Green with a clean middle ground. The veteran forward could decline his player option and return on a fresh two-year deal worth roughly $18 to $20 million annually. That kind of deal would give Draymond more guaranteed money in the long run. At the same time, the Dubs could lower their cap hit and create more flexibility to rebuild the roster for the fifth title.

On the other hand, the basketball side of this equation feels even more fascinating. The Warriors don’t have a capable replacement for the 36-year-old’s defensive chaos and versatility. Especially with Butler and Moses Moody unavailable next season, the responsibility to control defense lands on Draymond again. And the Golden State Warriors seem perfectly fine with that reality.

Draymond Green holds major keys this offseason

Right now, no decision feels bigger for the Warriors than the one involving Draymond Green. If he turns down his option before June 29 and enters unrestricted free agency, everything around the team’s offseason could change. In that scenario, the Warriors would finally gain some much-needed cap flexibility. And Green could get a chance to explore free agency after spending 14 NBA seasons with the same franchise. Even then, reports and speculations suggest that both sides will stay together. It’s largely because he helped deliver the dynasty years.

Every previous contract crossroads has ended the same way, with both sides choosing each other again. But even when Mike Dunleavy said the ball’s in his veteran forward’s court, it’s simply not. Draymond controls one clear path here. That is, he can decline the player option and search for a new team. Beyond that, the Warriors still hold plenty of influence over what comes next.

Even if Green picks up the deal, his spot on the 2026-2027 roster would not become automatic, although that contract could complicate trade talks. The 36-year-old still anchors the Warriors. However, years of physical battles have clearly chipped away at the explosive version that once terrified the league. This season, the veteran star averaged 8.5 ppg, 5.5 rpg, and 5.5 apg.

Meanwhile, things quietly grew awkward before the Feb 5 trade deadline, as the Warriors explored scenarios involving Draymond Green. That adventure included a potential path to the Bucks for Giannis Antetokounmpo. Interestingly so, Coach Kerr and Steph reportedly already knew about the discussions. However, no deal ever happened, but the feeling stuck around. Now, across the league, front offices and players no longer look at Green the same way they once did during Golden State’s dynasty run.

Yet, somewhere in between future uncertainty and fading performance, Draymond Green stands as a crucial key for the Warriors this offseason. If he declines his option and signs a cheaper multi-year extension, the Warriors would likely keep him off the trade block entirely. He could recover some of that lost money in 2027-2028. And that would give the front office some breathing space. And knowing Green’s loyalty towards the team, he might even be ready to sacrifice his pocket. Who knows?