The Jimmy Butler situation continues to evolve, as extension question looms over Butler and Heat

The busy part of the NBA offseason is still about a month away. But the noise surrounding Miami Heat star Jimmy Butler’s situation continues to grow louder.

With Butler seeking a maximum two-year contract extension worth about $113 million from the Heat this offseason, Keith Pompey of The Philadelphia Inquirer reported Tuesday that the Philadelphia 76ers “are prepared to give Butler a maximum-salary extension if things align and he forces a trade out of Miami.” Pompey added that the 76ers “view [Butler] as a fallback option if they are unable to sign Paul George in free agency.”

Along with the 76ers, according to league sources, there are two other teams that have made it known in league circles that they would be willing to trade for Butler and sign him to a max-level contract. Butler turns 35 on Sept. 14.

Despite the outside interest, Butler and his agent Bernie Lee have repeatedly made it clear — publicly and privately — that he wants to spend the rest of his NBA career with the Heat. But choosing not to offer Butler a max extension this offseason could derail those plans, especially with other teams seemingly willing to fulfill his request.

The two-year max extension that Butler and his camp will push for this offseason includes salaries of $54.3 million for the 2025-26 season (nearly a $2 million increase from the player option that it would replace in Butler’s current contract for that season) and $58.6 million for the 2026-2027 season when Butler will be 37 years old. He’s already under contract with the Heat on a $48.8 million salary for next season.

So essentially, Butler will ask the Heat to replace the two years and $101.2 million remaining on his contract (should he exercise the 2025-26 player option) with a three-year commitment worth $161.7 million.

While a few other teams appear to have interest in signing Butler to a max-level contract in his mid-30s, Heat president Pat Riley was noncommittal earlier this month when asked if the Heat would give Butler that extension this offseason.

The Heat can begin formally discussing the extension with Butler on the day after the last game of the NBA Finals, which could be as early as June 15 or as late as June 24. The window for the Heat to sign Butler to the two-year max extension opens July 7 and closes next year on June 30, 2025.

“We don’t have to do that for a year. So we have not discussed that internally right now,” Riley said during his season-ending news conference on May 6. “But we have to look at that, making that kind of commitment and when do we do it. We don’t have to do it until 2025, actually. But we’ll see. We haven’t made a decision on it, and we really haven’t in earnest discussed it. So we’ll just see what happens.”

But should the Heat opt not to sign Butler to a max extension prior to the start of next season, the allure of another team willing to give it to him could factor into what comes next.

Butler would be eligible to sign the same two-year, $113 million extension that he can sign with the Heat with any team he’s traded to because his Bird Rights carry over in a trade. However, Butler won’t become eligible to sign that extension in this scenario until six months following the trade.

Of course, Butler is under contract with the Heat for next season regardless of what happens with the extension this offseason. It also remains unclear whether Butler would even request a trade from the Heat if he doesn’t get the extension before the start of next season or if the Heat would be willing to deal Butler away.

Butler could choose to play out his current contract with the Heat next season even if he doesn’t get an extension this offseason. While one could argue Butler may then be forced to exercise the $52.4 million player option in his current contract with the Heat for the 2025-26 season because he might not get that type of money on the open market as he approaches his 36th birthday, the Heat risks losing a potentially disgruntled Butler for nothing in this scenario should he decline his player option in the 2025 offseason and become an unrestricted free agent based on the current outside interest in signing him to a max deal.

This regular season, Butler averaged 20.8 points, 5.3 rebounds, five assists and 1.3 steals per game while shooting 49.9 percent from the field, 41.4 percent from three-point range and 85.8 percent from the foul line. He was one of only five players around the NBA this regular season who averaged more than 20 points per game while shooting better than 49 percent from the field, 41 percent on threes and 85 percent from the foul line along with Kevin Durant of the Phoenix Suns, Kyrie Irving of the Dallas Mavericks, Kawhi Leonard of the Los Angeles Clippers and Karl-Anthony Towns of the Minnesota Timberwolves.

Butler’s case for requesting a max extension from the Heat this offseason is obvious: On the way to establishing himself as one of the greatest Heat players ever, he has helped lead the Heat to one of the most successful eras in franchise history with three Eastern Conference finals appearances and two NBA Finals appearances in his first five seasons with the organization. Earlier this month, Riley called Butler “an incredible player” and the one on the Heat’s roster who “moves the needle the most.” The advanced metrics back that up, as Butler led the Heat in estimated plus-minus, estimated wins, player efficiency rating, win shares and box plus/minus this season.

The Heat’s case for not giving a max extension to Butler this offseason is also obvious: He has missed 20 or more regular-season games in three of the past four seasons and his production was down across the board from last regular season with fewer points, rebounds, assists and steals per game this regular season at age 34. In addition, the extension would pay Butler nearly $60 million when he’s 37 and likely erase any chances the Heat has of entering the 2026 offseason with max cap space.

Butler wants to end his career with the Heat, but he also wants a max extension this offseason. He may not get the ending he wants if he doesn’t get the contract he wants.

This complex situation — between a player and an organization that have accomplished a lot together and share mutual respect for each other — will play out in the coming months. And it’s clear that other teams are watching and waiting to pounce if Butler and the Heat can’t strike a deal this offseason.