Well, it's official. LeBron James has decided to opt out of his current contract with the Miami Heat.

According to his agent Rich Paul, James will become a free agent on July 1.

This does come as a bit of a surprise to many basketball fans, as James had another week to decide and inform the Heat of his decision. If James had opted to remain with the Heat and exercise his option for next season, he could have made $20.5 million, and the following season, which was also an opt out year, he could have made more than $22 million.

What it Means and Where He May Go

No one knows exactly where James will decide to go, maybe not even James himself. He has had a lot of success in Miami, having won the last four consecutive Eastern Conference titles and two NBA Championships. Could he bring his talents back to Cleveland, where he played for seven seasons and led the team to their only Conference championship? He is from Akron, Ohio. Or is there another team out there that James is interested in?

What is most likely to happen is James will re-sign with the Heat.

James has said constantly that he loves living in Miami and he gets along very well with his teammates and coaches. The Heat may have suffered an embarrassing loss to the San Antonio Spurs in five games, but the reality is they did make it to the Finals. It's very unlikely James will be able to go to another team and join another roster with equal talent while still getting paid superstar money.

If James does decide to re-sign with the Heat, others may follow. That may be the reason for his early announcement. The other two big pieces to this puzzle are Dwyane Wade and Chris Bosh, who both have the option to opt out of their current contracts. Wade is 32 years old and his injuries are starting to show. Bosh is still in the prime of his career, so he can demand more on the open market. If Bosh and Wade are not willing to take less, than James might just leave.

A Look at LeBron's Other Options 

Another option for James is: just take the money and run.

James could join a team with no real expectations or realistic high hopes of winning a championship in the near future for big money. James could sign with a terrible team for more than $30 million a year if he wanted to. If he chooses to go that route however, it would be really hard to build around him because of the salary cap restrictions.

Then there is the other option.                                              

James could take a severe pay cut and join a great team. He did it before, after all, sacrificing cash to build the Big Three in Miami. LeBron could choose to reduce his annual salary from $19 million down to less than $5 million per year and a great team would be able to afford him. A team like the Indiana Pacers the Oklahoma City Thunder, for example. The Pacers already have an elite defense, and with the addition of James they would be unbeatable. This is very unlikely to happen because James is worth much more than this and it would hurt his legacy by just chasing championships. But again, it is possible.

It will be interesting to see how Carmelo Anthony and his agent respond to this. Anthony, too, has chosen to opt out and test free agency. Then there is the Pat Riley factor. Maybe Riley will not even want to keep Wade around for next season.

All cards are still in play, and right now, James is holding most of them. 

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