According to a report from Adrian Wojnarowski of ESPN, the Spurs have signed Pau Gasol to a new three-year deal, with the third year partially guaranteed.

Additional terms of the deal were not disclosed.

Gasol and the Spurs shocked the basketball world when Gasol opted out of his player option final year worth more than $16 million. Nobody thought Gasol would do that because why would a veteran that just turned 37 years old turn down $16 million in guaranteed money?

But the Spurs made a deal with Gasol that freed up enough cap space to sign free agents Patty Mills, Joffrey Lauvergne, and Brandon Paul.

(Rudy Gay is signed to the mid-level exception and his contract doesn’t count against the salary cap.)

While we don’t know yet how much Gasol will make, it’s likely the guaranteed money in his contract adds up to at least $16 million. The last year is likely only partially guaranteed because the Spurs could waive Gasol in the last year of his contract and Gasol could still get paid the money he was promised.

If Gasol is still somehow effective enough to warrant the team picking up that option and paying him more, good for him. The contract is a win-win for the Spurs.