Miami Heat Head Coach Erik Spoelstra speaks with forward Haywood Highsmith (24) during the first half of an NBA game against the Orlando Magic at Kaseya Center on January 27, 2025, in Miami. D.A. Varela dvarela@miamiherald.com
During what’s usually a quiet period in the NBA offseason, the Miami Heat made a trade.
The Heat announced Friday it traded forward Haywood Highsmith and a 2032 second-round pick to the Brooklyn Nets for a protected 2026 second-round selection in a move that sheds enough salary to bring Miami out of luxury-tax territory. The 2026 second-round pick that the Heat is getting from the Nets is protected from the 31st overall through the 55th overall selection.
By dealing away Highsmith and not acquiring a player in return, the Heat’s roster is down to 13 players on standard contracts for this upcoming season — two below the NBA regular-season limit of 15 players on standard deals. The move also creates a $5.6 million trade exception for Miami.
More importantly, the trade brings the Heat under the luxury-tax threshold. By shedding Highsmith’s expiring $5.6 million salary, the Heat goes from about $1.6 million above the luxury-tax line to about $4 million under the luxury-tax threshold. The Heat had until the end of this upcoming regular season to get out of the luxury tax, but opted to do that work before the start of the season by trading Highsmith to the Nets.
The Heat is also about $9.5 million below the punitive first apron of $195.9 million that it can’t cross until the end of this upcoming season following last month’s trade for guard Norman Powell.
After finishing as a luxury tax team in each of the last two seasons, the Heat was determined to escape the luxury tax for this upcoming season in order to avoid the onerous repeater tax that’s triggered when a team crosses the luxury tax threshold in four straight seasons or four times during a five-season period.
Now with only 13 players signed to standard deals for this upcoming season, the Heat will need to eventually add at least one player on a standard contract. NBA teams are allowed to have fewer than 14 players on standard contracts for no more than 14 consecutive days at a time during the regular season and a total of 28 days during the regular season.
The Heat, which has been eliminated in the first round of the playoffs in each of the last two seasons, is now far enough below the luxury tax to add a 14th player on a minimum standard contract while still avoiding the tax.
One option to fill that roster spot is for the Heat to use a minimum standard deal to retain guard Dru Smith, who closed last season on a two-way contract with Miami and remains a restricted free agent. Smith is no longer eligible to sign a two-way contract with the Heat because of an NBA rule and would need to sign a standard contract to again be on Miami’s roster for this upcoming season.
Smith, who has continued to rehab from his Achilles injury with the Heat this offseason, has been a part of Miami’s developmental program since he went undrafted out of Missouri in 2021.
Smith, 27, made himself an important part of the Heat’s bench rotation last season before suffering a non-contract Achilles injury in late December. He logged double-digit minutes in eight straight games before the injury, establishing himself as a reliable and solid offensive option while also turning into a standout point-of-attack perimeter defender.
Among the other minimum options still available for the Heat to fill out its roster who are center Kei Jones and guard Alec Burks. The Heat hosted Jones for a workout this week and Burks remains an unrestricted free agent after spending last season with the Heat.
As for Highsmith, he was expected to miss eight to 10 weeks in the wake of undergoing successful surgery to repair a meniscal tear in his right knee on Aug. 8. Highsmith departs the Heat after developing into one of the organization’s latest undrafted success stories.
After playing in 100 G League games and spending the 2020-21 season in the German Basketball Bundesliga, Highsmith initially joined the Heat in the middle of the 2021-22 season on a 10-day contract. He had played in just five regular-season NBA games prior to signing with Miami.
Highsmith, 28, carved out a role for himself as a capable three-and-D rotation player during his time with the Heat. In his four seasons with the Heat, Highsmith appeared in 213 regular-season games (80 starts) and played in 35 playoff games (zero starts).
Last regular season, Highsmith averaged career highs in points (6.5 per game), assists (1.5), steals (0.9) and blocks (0.5) while appearing in a career-high 74 games and making a career-high 42 starts. He shot 45.8% from the field and 38.2% on 3.1 three-point attempts per game last regular season.
Following Friday’s trade, the Heat’s preseason roster currently includes 16 players signed to contracts (including two-way contracts and Exhibit 10 deals).
The 13 players signed by the Heat to standard contracts for next season are Bam Adebayo, Tyler Herro, Andrew Wiggins, Terry Rozier, Powell, Davion Mitchell, Simone Fontecchio, Nikola Jovic, Kel’el Ware, Jaime Jaquez Jr., Kasparas Jakucionis, Pelle Larsson and Keshad Johnson.
The Heat’s two two-way contract players are forward Myron Gardner and center Vlad Goldin, with the third two-way slot still open to sign another developmental prospect. Two-way contracts, which pay half the NBA rookie minimum and do not count toward the salary cap or luxury tax, allow for players to be on their NBA team’s active list for as many as 50 regular-season games with other game action having to come in the G League.
The only player the Heat currently has signed to an Exhibit 10 contract is guard Ethan Thompson. Exhibit 10 deals essentially represent an invite to training camp and provide a financial incentive for that player to join the organization’s G League affiliate.
While 18 players (15 on standard contracts and three on two-way contracts) is the regular-season limit, NBA teams are allowed to carry up to 21 players during the offseason and preseason (including up to three two-way contract players).
The Heat is scheduled to hold its annual media day on Sept. 29 before opening training camp on Sept. 30 to kick off the 2025-26 season. The Heat opens the regular season on Oct. 22 against the Magic in Orlando.