The Golden State Warriors entered the offseason without signing a single outside free agent. After missing out on a potential deal for LeBron James, the franchise shifted its focus toward retaining its own players and adding through the draft. The team’s only new addition was 2026 first-round pick Yaxel Lendeborg.

That approach allowed Dub Nation to maintain continuity around Stephen Curry, but the decision to bring back De’Anthony Melton has created a new financial challenge.

Retaining the veteran guard has raised more questions about the team’s long-term roster construction. As the final details of Melton’s contract surfaced, the Warriors found themselves facing even tighter salary restrictions.

“De’Anthony Melton’s contract with the Warriors came in higher than was reported. Melton got the full Taxpayer MLE from GSW: 2026-27: $6.064M 2027-28: $6.4M 2027-28 is a player option for Melton,” Cap analyst Keith Smith reported.

“GSW is hard-capped at the second apron by using the Taxpayer MLE. They have about $5.2M in room under the second apron.”

The contract came in higher than the original reported figure of two years and $11 million. The initial expectation was that Melton would return on a smaller deal after opting out of his previous $3.5 million player option. Instead, the Warriors used the entire taxpayer mid-level exception to keep him.

Originally signed as a free agent on July 8, 2024 by GSW, his first season ended after six games. A partially torn left ACL ended his campaign, and later the Warriors traded him in December that year. Melton eventually returned to Golden State on October 1, 2025.

Over a season and a half with the Warriors, Melton played only 55 games, starting 26 of them. Despite that limited availability, Golden State continued investing in his return.

Melton received $13 million in July 2024 and another $3 million in July 2025. His latest agreement added another significant commitment, with the Warriors giving him the full taxpayer mid-level exception.

By using the taxpayer mid-level exception, the Warriors became hard-capped at the second apron. The team entered the season with only around $5.2 million of room below that threshold, limiting its ability to make additional upgrades.

On paper, his skill set fits alongside Curry and the Warriors’ style of play. The concern has been consistency and availability. During the 2025-26 season, Melton appeared in 49 games and averaged a career-high 12.3 points per game. However, he struggled with efficiency, shooting 40.7% from the field and just 29.4% from three-point range.

Keeping Melton could still prove valuable if he stays healthy. His defensive ability and experience can help a team build around an elite veteran leader. With Curry entering the later stages of his career, the Warriors cannot afford many more expensive moves that fail to provide consistent impact.