Guard Dru Smith, who impressed the Heat early last season before sustaining a season-ending torn Achilles, agreed to a three-year deal with Miami on Saturday, a league source confirmed.
According to the source, Smith’s modest first year salary is fully guaranteed. The second and third years have conditional guarantees.
There’s optimism that Smith, who sustained the non-contact injury in late December, will be able to play by the start of the regular season in October, or very soon after.
Smith, 27, logged double-digit minutes in eight straight games before sustaining the injury, establishing himself as a reliable three-point shooter and a skilled point-of-attack perimeter defender.
Smith played the entire fourth quarter in five of the seven games leading up to his injury.
In 14 games and one start last season, he averaged 6.2 points, 2.6 rebounds, 1.6 assists and 1.5 steals per appearance while shooting 50.8 percent from the field and 53.3 percent from three-point range.
Smith has been a part of the Heat’s developmental program since he went undrafted out of Missouri in 2021. He has spent at least part of his first three NBA seasons with the Heat.
“The way that this organization has taken care of me and things like that, I can never thank them enough,” Smith said in February of the Heat’s commitment to him over the last four years. “I’m just really appreciative to be here and be a part of this organization. Hopefully things will progress in the right way and we’ll see how things shake out.”
Because of an arcane league rule, Smith was not permitted to take the Heat’s one available two-way contract.
His signing comes a day after Miami traded wing Haywood Highsmith and a 2032 second round pick to Brooklyn for 2026 second-round pick that will convey to Miami only if the Nets have one of the league’s five best records next season.
That move apparently was made to pull the Heat below the luxury tax line, which Miami does not want to surpass this season.
By shipping out Highsmith, who was due $6 million, and replacing him with Smith, who is expected to make less than half of that, Miami will stand a bit below the luxury tax threshold.
The Heat can add a 15th player midway through next season and remain below the tax threshold.
The Heat opted to sign Smith instead of a backup center such as Kai Jones, who auditioned for Miami last week, or veteran center Trey Lyes, who also has been linked to the Heat.
Smith, Davion Mitchell and rookie Kasparas Jakucionis give the Heat three natural point guards. All could end up coming off the bench if Erik Spoelstra opts to start Tyler Herro and Norman Powell in the backcourt.
Miami now has 17 players under contract -- 14 under standard deals, two players on two-way deals (Vlad Goldin and Myron Gardner) and one (guard Ethan Thompson) on an Exhibit 10 deal, which includes a training camp invitation.