Warriors Take Shocking Decision on Kristaps Porzingis’ $20M Contract as Retirement Decision Looms

Just weeks ago, this story was still framed as a mystery. The Warriors couldn't say where Porzingis was, what health issue he was dealing with, or when he might return, and Steve Kerr publicly admitted that he hadn't personally seen him since before camp began.

Golden State offered one concrete step forward at the time, a scheduled medical evaluation at Chase Center. That appointment has clearly led somewhere far more serious than a simple health update.

According to Shams Charania, the Warriors are no longer paying Porzingis his $20 million salary, ruling that he isn't rendering services to the team.

"The Warriors are not delivering payments to Kristaps Porzingis on his $20 million salary, ruling that he is not rendering services," Charania tweeted.

Golden State retains the ability to move his contract at any point before the February 11 trade deadline even without currently paying him, and league sources told Charania the front office will keep exploring trade options as Porzingis, 31, leans toward ending his NBA career entirely.

Brett Siegel added further context on the withheld payments. "When a player refuses to play or is away from the team without organizational approval, the team has the right to withhold portions of their salary or place funds into an escrow account," Siegel wrote. "That is what is happening with Kristaps Porzingis and the Warriors, as the team will continue to explore the trade market over the next few months."

Per Ian Begley, "sources close to the NBPA/Porzingis say the NBPA has been kept in loop" and "Porzingis doesn’t want to challenge Warriors’ stance right now."

Siegel noted the arrangement actually creates an opening for another franchise: any team absorbing Porzingis’ near-expiring contract could immediately buy him out. This will allow that team to shed a larger, less desirable salary of its own while taking on a deal that’s unlikely to require real money paid to Porzingis himself.

A healthy Porzingis holding out for a trade would be treated completely differently than a player signaling he may simply walk away from the game.

Withholding salary protects Golden State financially in the short term. But it also turns his expiring money into a genuine trade chip.

That explains why the Warriors haven't simply written off the situation entirely. Even a player who's retiring, or close to it, still has value on an NBA roster if his salary can help another team duck under the luxury tax or clear a roster spot through a buyout.

Golden State signed Porzingis to a two-year, $40 million contract over the summer specifically betting he could stay healthy and productive.

The outcome now being managed is almost the opposite of what that bet was designed for: not finding a trade partner for a productive center, but finding a taker for a contract attached to a player who may never suit up again.