The Warriors might have a tough decision to make on Klay Thompson this summer.

After a disappointing 2023-24 NBA season, the veteran guard is an unrestricted free agent and likely will test free agency in some capacity.

Former Warriors coach George Karl joined Brandon Robinson on the “Scoop B Radio Podcast” to discuss Thompson’s future and how he would approach contract negotiations with the 34-year-old.

“I would have probably made that decision to break them up a little earlier than now,” Karl said. “Would I give him an extension? I would try to work on an extension with him that would be team-friendly and hopefully make him happy. But if he wants to go out and get the bigger dollar, I might let him go.” (h/t Warriors Wire)

The Athletic’s Shams Charania reported Monday that Thompson and the Orlando Magic have “mutual interest,” and Karl believes Orlando could be a good fit for the five-time All-Star.

“Orlando needs someone that can make a shot … Now I don’t know if he’s able to help you as an All-Star but he might help you as a veteran and pro that can come off the bench and light it up,” Karl added.

The Warriors have made it abundantly clear they want to re-sign Thomspon, but faced with financial constraints and glaring roster needs, there is a possibility they might not be able to afford him.