Millsap, a four-time All-Star, had a $21.4 million option for next season that he said he planned to opt out of following the Atlanta Hawks‘ first-round exit from the playoffs.
The veteran forward is signing for less than the max he was eligible for. The Hawks could have offered to re-sign him for a projected five-year deal worth up to $205 million, and any other team could have offered him a four-year contract worth $158.4 million.
After Atlanta lost to Washington in six games in the Eastern Conference’s first round, coach Mike Budenholzer said he is a “huge believer” in the 32-year-old Millsap.
“The best for us is with Paul,” Budenholzer said. “We’re incredibly optimistic and incredibly committed to Paul.”
Millsap, for his part, said he wanted to stay with the Hawks.
“I want to be here,” Millsap said. “I think talks have been pretty good. … It’s something me, my agent and my family have got to sit down and talk about.”
Millsap averaged 18.1 points and 7.7 rebounds this past season. His name was floated around at the trade deadline, but Atlanta ultimately decided to hang on to him en route to a 43-39 record and the fifth seed in the East.
Millsap was the top producer on a roster that received disappointing returns from $70 million investments in Dwight Howard, who has since been traded, and Kent Bazemore and lost forward Al Horford to free agency last offseason.
Millsap was ranked No. 5 on the list of top available free agents compiled by ESPN’s Kevin Pelton this offseason.