Kate Fagan and Adrian Wojnarowski have the scoop via Twitter. Thad won't test the market, the Sixers have apparently locked him down for five years for $42M. Woj had the number first, Kate had the deal being done.
Obviously, we need more details, but this deal would probably have to start higher than $7M/year to reach $42M over five. Based on the other contracts that have been handed out, this isn't out of line with the market. More analysis to follow.
OK, so a starting salary of $7,250,000 with yearly raises of the max allowed (7.5%) would put the five year total at a little over $52M. If this is a typical contract, that's probably where he'll start in year one. This would be the yearly breakdown:
If the contract is a done deal, and this is how it's structured, the Sixers are probably at about $63,665,659 against the cap. Meaning they can't use the MLE unless they withdraw their QO to Hawes and renounce his bird rights, sign him for less than $2M, use the amnesty provision on someone else (like Nociono), or make a trade which drops some money from their books.
Happy Thad's back? Sad they didn't get a bargain in the process? Thoughts in the comments.