Andrew Bogut has signed a three-year, $36 million contract extension with the Warriors. The deal, which could be worth up to $42 million with incentives, could actually prove to be a bargain for Golden State, according to the Mercury News:

“For the second consecutive October, the Warriors embraced the risk to get a player they really wanted at a discounted price.

“Golden State announced Friday it had signed center Andrew Bogut to a contract extension, even though he’s missed 104 games the last two seasons. The extension locks up Bogut through the 2016-17 season. [...]

“The base of the Bogut deal, according to multiple sources, is three years, $36 million. That kicks in after this season, for which he will make $14 million. But the extension includes incentives that could push the deal up to nearly $42 million.

“For a 15 percent bonus to kick in, Bogut needs to play 65 games and achieve one of the following: All-Star, All-NBA, All-NBA Defense, Defensive player of the year. [...]

“Bogut’s contract also descends in value, starting at about $13 million for next season and ending at about $11 million in the final year. That gives the Warriors a little more salary-cap flexibility, which will matter when it’s time for guard Klay Thompson’s extension next offseason. And forward Harrison Barnes’ the year after that. [...]

“At the end of last season, the Warriors told Bogut they wanted to keep him long term. Bogut said the management’s willingness to reward him for the sacrifice he made in the playoffs made him feel good about avoiding free agency.

“The two agreed to begin negotiations in October provided Bogut was healthy. Both parties wanted to get a deal done before the season began or table it until next offseason. Bogut said the deadline was Friday because he didn’t want that in his head while preparing for the season opener.”