Heat land Iguodala, Waiters to Grizzlies as Gallinari talks fall apart

Andre Iguodala is headed to South Beach.

The Memphis Grizzlies traded Iguodala, Jae Crowder, and Solomon Hill to the Miami Heat in exchange for Justise Winslow, Dion Waiters, and James Johnson, the Heat announced.

The Minnesota Timberwolves joined the deal in the final hour before Thursday's 3 p.m. ET deadline by acquiring Johnson from the Grizzlies in exchange for forward Gorgui Dieng.

Memphis and Miami were in negotiations with Oklahoma City about a trade that would send Thunder forward Danilo Gallinari to the Heat, but those discussions came to a halt in the hours leading up to the deadline.

Miami was also working on an extension with Gallinari's camp, but the Heat's motivation to preserve 2021 cap space prevented anything from materializing.

Iguodala will also reportedly sign a two-year, $30-million extension with Miami. The second season (2021-22) is a team option, according to The Athletic's Shams Charania. His extension includes a 7.5% trade kicker, ESPN's Zach Lowe reports.

The team option on the second season of Iguodala's extension is intended to give Miami financial flexibility in 2021 when it plans to make a splash in a loaded free-agent class; the team will guarantee the second season if it fails to sign a max star that summer, Adrian Wojnarowski reports.

The Grizzlies had mutually agreed to hold Iguodala out for the season after acquiring him from the Golden State Warriors last summer. They had hoped to eventually flip him to a contender prior to Thursday's trade deadline. Iguodala is earning $17.2 million this season - the final year of a three-year, $48-million contract he signed with Golden State.

Iguodala was a crucial piece of the Warriors side that won three NBA titles in four seasons between 2015 and 2018. He was also named Finals MVP in 2015.