Steve Kerr has ended weeks of speculation by signing a two-year contract extension with the Golden State Warriors, securing his place as the NBA’s top-earning head coach. The new deal includes a significant raise over his previous $17.5 million annual salary, widening the gap between Kerr and the league’s second-highest-paid coach, Miami’s Erik Spoelstra, who earns $15 million per year. While exact numbers remain undisclosed, sources told ESPN that the difference between the two contracts will be substantial.
The decision was driven by more than just financial terms. Kerr and the Warriors held multiple meetings with owner Joe Lacob and general manager Mike Dunleavy, focusing on basketball strategy, the team’s long-term direction, and a realistic path back to contention.
Elite NBA coaching contracts have become their own market. Gregg Popovich reset the ceiling in 2023 with a five-year, $80-million-plus deal with the Spurs—partly inflated by his dual role as president—while Spoelstra’s extension and Ty Lue’s Clippers deal, reported at around $7–8 million annually, set earlier benchmarks. Kerr’s previous $17.5 million AAV already topped that field among pure head coaches. His new deal pushes the bar higher, arriving as rising NBA revenues give top coaches more leverage to negotiate market-resetting terms.
That path had looked increasingly uncertain after a rough season. Golden State finished with a disappointing 37-45 record, landing as the 10th seed in the Western Conference. Things worsened when the Phoenix Suns eliminated them in the play-in tournament, ending their season earlier than expected. After that painful loss, Kerr questioned whether he should return.
“I still love coaching, but I get it,” Kerr said. “These jobs all have an expiration date. There is a run that happens, and when the run ends, sometimes, it’s time for new blood and new ideas.”
Before signing, Kerr seriously considered leaving the Warriors. At the start of the season during training camp in October, he made it clear he did not want to rush into a new deal. Instead of immediately extending his contract, he chose to wait until the season ended so he could carefully evaluate his future.
Steve Kerr’s major overhaul with the Warriors
Steve Kerr joined the Golden State Warriors as head coach in May 2014 under heavy skepticism. The team had just finished a strong 2013-14 season with a 51-31 record under former coach Mark Jackson—who was popular with players, especially Stephen Curry—and many fans believed Jackson deserved to keep his job. Adding to the doubt, Kerr had never coached a team before taking over.