The notion of an NBA team hoarding cap space — and then having nobody great to spend it on — would have been a comical concept 15 years ago, when star players traditionally waited for free agency before securing generational wealth.
That’s no longer the case in this modern NBA era when players sign mega contracts first, then ask questions (or, in some cases, ask to be traded) later.
And that has left the Heat — and some other teams with the ability to clear out significant cap space next summer — changing course somewhat.
In deciding not to extend Jimmy Butler’s contract past this coming season, Miami originally was eyeing major cap space in 2026, either to pounce on a player in free agency or via trade, or maintain the flexibility to make moves that teams over the cap, or the first apron, cannot easily make, or make at all.
But since then, Luka Doncic, De’Aaron Fox, Jalen Williams, Paulo Banchero, Jaren Jackson Jr., Mikal Bridges, Chet Holmgren, Jabari Smith and other potential 2026 free agents have signed extensions.
That leaves only four multitime All-Star players with the ability to become free agents next summer: Kevin Durant (who hasn’t agreed to an extension with Houston), LeBron James, James Harden (who has a $42.3 million player option with the Clippers for 2026-27) and Trae Young, who has a $48.9 million player option with the Hawks.
Durant will forever be a Heat possibility if he makes it to free agency; the Heat always has held him in high regard, but key members of the organization disagreed about which players to offer in trade negotiations with Phoenix in June.
Ultimately, the Heat opted not to include Kel’el Ware (whom the Suns particularly coveted) or Nikola Jovic combined with a first-round pick swap (in addition to several other players and a 2025 first-round pick).
Instead, Durant was dealt to Houston, and it would be a mild surprise if he and the Rockets don’t agree on an extension at some point. He’s eligible to sign a two-year, $118 million extension.
As for Young, at this point it’s considered unlikely that he would end up with the Heat. Everything is fluid, but that’s where things stand at the moment.
Young is eligible to sign a four-year, $229 million extension before June 30 or can sign a five-year, $345 million supermax extension if he is named All-NBA this upcoming season. Otherwise, Young can become an unrestricted free agent next summer if he declines to exercise his player option for 2026-27.
There is no specific Heat goal of creating 2026 cap space, but there is a desire to maintain flexibility; that means having room under the luxury tax line and first apron, which makes trades easier. In that regard, the Heat should be in good shape, well below the projected $200 luxury tax line for 2026-27 and the $209 million first apron.
Exploring each path open to the Heat in nine months:
OPERATING AS A ROOM TEAM
This was the original tentative plan but no longer. In fact, creating cap space could end up being counter-productive.
If Andrew Wiggins exercises his $30.2 million player option for 2026-27, then the Heat would have $127.5 million committed to four players for that season: Bam Adebayo ($51.9 million), Tyler Herro ($33 million), Wiggins and Davion Mitchell ($12.4 million), with the cap projected to be $166 million in 2026-27.
If the Heat, as expected, exercises player options for Jaime Jaquez Jr. ($5.9 million), Ware ($4.6 million) and Pelle Larsson ($2.3 million), that would add up to $140.3 million committed to those seven players.
Throw in the $3.8 million 2026-27 salary for rookie Kasaparas Jakucionis and another salary potentially in that range for a 2026 first-round pick, and that brings the total to the neighborhood of $148 million.
There’s also a $13.3 million cap hold for restricted free agent Jovic that stays on Miami’s books until he re-signs or leaves. (Restricted free agents who are making less than the league average salary, like Jovic, have a cap hold of 300% of their previous season’s salary.)
Miami Heat forward Nikola Jovic (5) controls the ball against the Philadelphia 76ers in the second quarter at Wells Fargo Center. Kyle Ross Kyle Ross-Imagn Images
If he re-signs, that $13.3 million would be replaced by his 2026-27 salary. If the Heat doesn’t make him a qualifying offer, he would be off the Heat’s books entirely — but Miami very likely would make him a qualifying offer.
So that’s about $162 million for 10 players, with modest cap holds required for players 11 and 12, leaving the Heat a tad over the projected $166 million cap.
That $166 million payroll does not even include impending free agent Norman Powell, who is due to make $20.6 million this season. According to a source, the Heat is open to considering an extension with Powell if the start of the season goes well.
A Powell extension likely would leave Miami with modest cap space if Wiggins leaves or well over the cap, but under the luxury tax line, if Wiggins and everyone else stay.
If the Heat wanted to create max space or close to it — and it would seem pointless to do this — the easiest path would be trading Wiggins for an expiring contract before the February trade deadline (or hoping he opts out next June, which is a real possibility), not re-signing Powell and either creating another $20 million plus space by moving off Jovic and several other young players or by trading Herro for several players, including at least pricey one with an expiring contract.
That hardly seems worth the trouble, even if Durant, James and Young make it to free agency.
Simply subtracting Wiggins (either via trade or him opting out), not re-signing Powell but keeping everyone else would create about $28 million in space, which could be used on an unrestricted free agent class that, at this point, could include Kristaps Porzingis, John Collins, Austin Reeves, Zach LaVine (player option), Harrison Barnes, Rui Hachimura, Tobias Harris, CJ McCollum, Colin Sexton, Cam Thomas, Anfernee Simons and Nikola Vucevic.
Jonathan Kuminga and Josh Giddey, who are restricted free agents, can be unrestricted next summer if they sign one-year qualifying offers by the Oct. 1 deadline.
The 2026 class also potentially includes restricted free agents who are traditionally more difficult for other teams to obtain, including Keegan Murray, Christian Braun, Toumani Camera, Jalen Duren, Jaden Ivy and Dyson Daniels.
Are any of those players worth the trouble of moving off both Wiggins and Powell?
For an unlikely goodbye tour for James or a final shot at Durant, it’s worth a discussion. For everybody else, probably not. Wiggins and Powell are better than nearly everyone on that list.
Keep in mind that teams below the cap can use a $9.4 million room exception as well as cap space.
Operating over the cap
This seems like the prudent course, barring a disastrous season or Wiggins opting out next summer.
If the Heat operates above the $166 million cap next summer, it can use a $15.1 million non-taxpayer mid-level exception.
The Heat can keep everyone on the roster, re-sign Powell to a deal in the $20 million annual range and still have the space to use most of its $15.1 million exception without surpassing the $200 million luxury tax line.
If this season disappoints, there will be a strong case to be made for an overhaul. But there won’t be a need to clear out tens of millions in cap space to revamp the roster.
Times have changed, and squirreling away cap space is no longer a panacea, something the Heat essentially acknowledged in changing course over the past year.
And that’s why forgetting about cap space next summer -- overhaul or not -- seems like the way to go.
Achiuwa in play
In its search for another veteran backup power rotation player, the Heat has expressed interest in power forward/center Precious Achiuwa, its 2020 first-round pick, but has not offered him a contract, an involved party said.
Achiuwa has a residence in South Florida and would be interested in a return, the source said.
Oct 15, 2024; New York, New York, USA; New York Knicks forward Precious Achiuwa (5) shoots the ball while being defended by Charlotte Hornets forward Taj Gibson (67) during the first half at Madison Square Garden. Mandatory Credit: John Jones-Imagn Images John Jones USA TODAY NETWORK
The Heat conveyed that Achiuwa would be strongly considered if Miami creates more room under the luxury tax threshold. Unless the Heat releases Terry Rozier or purges some other salary in a trade, Miami would not have enough space to sign a 15th player to a standard contract — and remain under the luxury tax line — until December.
After paying a tax the past two seasons, the Heat prefers not to pay a tax this season. The easiest way to create space now for a 15th player would be releasing Rozier, with only $24.9 million of his $26.6 million salary guaranteed.
The Heat has discussed this option, but to this point has leaned toward keeping Rozier to see if his salary (and expiring contract) can be used as cap ballast in a trade if a pricey standout player becomes available closer to the February trade deadline. But the situation is fluid.
Achiuwa, 25, averaged 5.0 points and 3.1 rebounds in 61 games (and four starts) in his one season for the Heat, before being sent to Toronto with Goran Dragic in the sign-and-trade involving Kyle Lowry.
He has averaged 7.6 points and 5.7 rebounds in 320 games and 72 starts over five seasons. Last season, he appeared in 57 games and started 10 for the Knicks, averaging 6.6 points, 5.6 rebounds and 20.5 minutes.