Trade or no trade from the Heat, what are Jimmy Butler’s options under his current contract?
The Jimmy Butler situation remains unresolved.
With Thursday’s 3 p.m. trade deadline approaching, the Heat is still working to find a trade for Butler as the clock ticks. But a deal is far from guaranteed because of the challenges that the NBA’s collective bargaining agreement have created to limit player movement paired with Butler’s unique situation.
The Phoenix Suns are still the team pushing the hardest to land Butler ahead of Thursday’s deadline and also seemingly appear to be Butler’s preferred trade destination, according to league sources.
The Golden State Warriors are another team that has emerged as a potential trade destination, but ESPN’s Brian Windhorst reported Sunday that Butler told the Warriors that he’s unwilling to sign an extension with them and trade talks between the Heat and Warriors “have ended for now.”
Windhorst then reported Tuesday that the Warriors are trying to trade Andrew Wiggins and draft picks to acquire a star, adding that “I think Miami was willing to do that deal for Butler. Let’s see if by Thursday that gets revisited.”
Butler, who has made it clear that he wants the Heat to trade him, is suspended by the Heat at least through Thursday’s trade deadline. But the Heat labeled this latest suspension as “indefinite” due “to a continued pattern of disregard of team rules, engaging in conduct detrimental to the team and intentionally withholding services.”
Butler remains away from the Heat, as he serves his third team-issued suspension of the last month. He’ll serve the fourth game of this suspension when the Heat takes on the Bulls in Chicago on Tuesday night.
Butler’s third suspension follows two previous team suspensions last month — a seven-game banishment in early January and a two-game suspension later in January.
In meetings with Heat president Pat Riley, owner Micky Arison and chief executive officer Nick Arison in January, Butler remained adamant about his desire to be traded out of Miami.
According to multiple sources, the 35-year-old Butler has been disappointed with the Heat primarily because Miami declined to give him a two-year, $113 million contract extension this past summer, a deal that would have run through the 2026-27 season.
So, what are Butler’s options under his current contract with the Heat? Here they are, whether or not he’s traded prior to Thursday’s deadline ...
▪ Opt in and play out his current contract: Butler, who is on a $48.8 million salary this season, can play out the season with the Heat or elsewhere (if he’s traded before next month’s deadline) without signing an extension.
He will then have a decision to make on the $52.4 million player option in his contract for next season. By opting in, he would be locked into that $52.4 million salary for next season.
By opting in, Butler would make $101.2 million between this season and next season. Even if Butler opts in, whether it’s with the Heat or another team, he will immediately be eligible to be traded as a big expiring contract.
▪ Opt out and become a free agent: If Butler plays out the season without signing an extension and then bypasses the $52.4 million player option in his contract for next season, he will become a free agent this upcoming summer.
As a free agent this offseason, Butler would be eligible to sign a four-year max contract projected to be worth about $243 million (with a starting salary of $54.1 million in 2025-26) with the Heat or the team he’s potentially traded prior to Thursday’s deadline.
In this scenario, Butler would also be eligible to sign a max three-year contract worth about $171 million (with a starting salary of $54.1 million in 2025-26) elsewhere into a team’s cap space or via a sign-and-trade transaction in free agency.
▪ Sign an extension before June 30: Butler’s other option is to sign an extension with the Heat or any team he’s traded to, eliminating his upcoming player option decision. The window to sign this extension closes on June 30.
Butler is eligible to sign a two-year contract extension worth $112.6 million with the Heat during this window that keeps him under contract until he’s 37 years old, but this is considered unlikely based on Butler’s seemingly broken relationship with the Heat. This extension would pay Butler $54.1 million next season and $58.5 million for the 2026-27 season.
If Butler is traded, he’s eligible to sign a two-year contract extension worth $110.9 million with his new team during this window that also keeps him under contract until he’s 37. This extension would pay Butler $54.1 million next season and $56.8 million for the 2026-27 season. Butler can sign this extension with any team he’s traded to immediately after the move and up until June 30.
The $1.7 million difference between the extension Butler can sign with the Heat and the team he’s potentially traded to is due to the fact that his new team could only offer him a 5 percent raise on his 2025-26 salary, while the Heat can offer an 8 percent raise on his 2025-26 salary.
The $54.1 million salary in both extension scenarios would replace the $52.4 million player option that Butler has in his current contract for next season.
NEWS NOTE
The Philadelphia 76ers reportedly traded former Heat forward Caleb Martin to the Dallas Mavericks on Tuesday. In return, the Mavericks sent guard Quentin Grimes and Philadelphia’s 2025 second-round pick back to the 76ers.
Martin left the Heat to sign with the 76ers in free agency this past summer after a productive three-season stint in Miami, but his time in Philadelphia didn’t even last a full season.
The Heat tried to keep Martin this past offseason, making him an offer that would have paid him $65 million over five seasons. But Martin turned down that offer, as he ended up signing a smaller four-year contract that included $35 million guaranteed and can reach up to $40 million with bonuses to join the 76ers in free agency.
This story was originally published February 4, 2025 at 2:08 PM.
