How Heat trade turns into massive cash windfall for Giannis Antetokounmpo

Giannis Antetokounmpo will make a bag in Miami.

The former Bucks star could sign a lucrative four-year $275 million extension with the Heat until the 2030-31 season as soon as six months from now, or $214 million for three years should he take advantage of his player option.

Antetokounmpo’s willingness to sign a long-term extension played into the Heat’s interest to trade with Milwaukee to avoid a one-year rental situation.

Antetokounmpo is set to make $58.4 million in his 2026-27, with a player option for $62.7 million the following season.

The Heat had an advantage in terms of contract value because Florida is one of nine US states without an income tax.

In contrast, Massachusetts, home of the trade talk runners-up Celtics, has a 9% millionaires tax, and Wisconsin has a 7.65% income tax on earnings in excess of $431,060, according to Sportico.

Sportico estimates, assuming all factors remain the same, the 10-time All-Star would make $198.3 million after taxes if he signs an extension with the Heat, compared to $181.7 million if he joined the Celtics.

Antetokounmpo’s current contract is the seventh-highest annual salary in the NBA, but it would become the highest should he sign the four-year extension.

The 31-year-old joined the Heat on Monday in a trade that also brings Bobby Portis to Miami. The Bucks got Tyler Herro, Kel’el Ware, Jaime Jaquez Jr., Kasparas Jakucionis, three first-round picks, one pick swap and one second-round pick in return, per ESPN.

Milwaukee chose the Heat package over the Celtics’ in order to allow new head coach Taylor Jenkins the chance to imagine the next generation of the Bucks, rather than focusing on another veteran-filled team with win-now aspirations.

The Heat title odds jumped from 30-1 to 18-1 after the trade and 6-1 to win the Eastern Conference, behind the Knicks and Celtics.

Antetokounmpo will chase his second career title after leading the Bucks to the championship in 2021.