Milwaukee Bucks and Jrue Holiday Agree to a Four-Year Extension Deal

The Milwaukee Bucks have signed guard Jrue Holiday to a four-year contract extension that will keep him in Milwaukee at least until the 2023-24 season.

The contract could be worth up to $160M and it includes a player option for the 2024-25 season.

🗣 Milwaukee Bucks and Jrue Holiday Agree to a Multi-Year Contract Extensionhttps://t.co/uLdmjgUedl

— Milwaukee Bucks (@Bucks) April 4, 2021

Holiday had a $26.7M player option for the 2021-22 NBA season as part of the five-year $126M deal he signed when he was still in New Orleans and could have entered free agency after the current season. But by agreeing to an extension, he declines that option and will make more than $30M next season, with his pay increasing each year until it reaches $37M for his player option during the 2024-25 season.

Milwaukee gave up a fortune to acquire Holiday, as it attempted to sign two-time MVP Giannis Antetokounmpo to a long-term deal. By trading for Holiday, they were able to re-sign Antetokounmpo. But the Bucks gave up George Hill, Eric Bledsoe, first-round pick RJ Hampton, two future first-round picks, and two pick swaps.

Unlikely Bonuses

A breakdown of the contract, however, revealed that it isn’t as massive as it is being reported. That’s because only $135M of the deal is guaranteed, with $25M coming in the form of bonuses. Despite that though, Holiday is still getting a nice raise – a pay grade that is 20% better than his current salary.

Jrue Holiday’s Extension Has $20.9M In ‘Unlikely Bonuses’ https://t.co/CrU9WQ80Ub

— RealGM (@RealGM) April 5, 2021

According to a report from The Athletic, only $4.1M of the said bonuses is deemed likely, with the remaining $20.9 “unlikely”. These bonuses are player performance bonuses, meaning Holiday earns them if he reaches specific statistical milestones.

Per the report, these numbers are not within his reach given his current season averages.

Had holiday waited for the free agency period after the season, he would have been eligible to sign a four-year $169.9M contract with another team or approximately $228M over the course of five years with the Bucks. But then, of course, the offseason is still several months away and anything could still happen and he played it safe.

Locking Their Big 3

By securing a deal with Holiday, the Bucks now have locked in their Big 3 at least through the 2022-23 season. Khris Middleton has a $40M player option for the 2023-24 season while Holiday has a player option for the 2024-25 season which is the final year of Giannis Antetokounmpo’s supermax deal. This means that this is the best time for the Bucks to chase a championship in the Giannis era.

Bucks have LOCKED IN their Big 3 👀

💰 Giannis: 5 years/$228M

💰 Khris: 5 years/$177M

💰 Jrue: 4 years/$160M

How many rings will these 3 win together?

(📸: @Bucks) pic.twitter.com/vqskQK5Knb

— Overtime (@overtime) April 4, 2021

Milwaukee had the NBA’s best record during the previous two seasons but they came up short during the playoffs in both seasons. Last offseason, Milwaukee swung a big trade to acquire Holiday but gave up two first-round picks and two pick swaps to do so. That was a big risk but now that they have locked Holiday for the next four seasons, the risk has been mitigated and they no longer have to spend the next three offseasons looking for that third star to help Giannis and Middleton.

With ownership doing its part by spending big, it’s now up to the front office and the coaching staff to help this team at the highest level. With the kind of money that they have invested, $330M+ on their best three players alone over the next three seasons, anything less than an NBA title would be a disappointment.