According to ESPN’s Adrian Wojnarowski, Klay Thompson is set to sign a three-year, $50 million contract with the Dallas Mavericks in a sign-and-trade deal involving the Golden State Warriors and Charlotte Hornets.

As part of the agreement, the Warriors will receive two second-round picks from the Mavericks to finalize the transaction.

Thompson, who spent his first 13 seasons with the Warriors, signed a substantial five-year, $189.9 million contract in 2019 despite recovering from a torn ACL that sidelined him for the entire 2019-20 season. Subsequently, he suffered an Achilles injury that kept him out for most of the following two seasons.

After a 30-month absence from the game, Thompson returned in January 2021. While he has shown flashes of his shooting prowess—hitting 41.2% of his three-point attempts in the 2022-23 season—his defensive impact has diminished since his peak.

The move signifies a significant change for the Warriors, who faced challenges under the new collective bargaining agreement, prompting them to explore options to manage their roster and financial flexibility. Despite efforts to retain Thompson, negotiations stalled, paving the way for Dallas to secure the veteran player.

Joining the Mavericks, Thompson will join forces with stars like Luka Dončić and Kyrie Irving, potentially forming one of the NBA’s most potent offensive trios and bolstering Dallas’ bid for championship contention following their recent NBA Finals appearance.