Will Heat lose both Highsmith and Martin in free agency? The latest on where things stand
The Miami Heat watched Max Strus and Gabe Vincent sign elsewhere in free agency last summer. This offseason, the Heat is hoping not to lose two rotation players in free agency for the second straight year.
That’s why the Heat — with the first round of this year’s NBA Draft being held on Wednesday night and the second round on Thursday (4 p.m., ESPN) — is working to find a way to avoid losing both Haywood Highsmith and Caleb Martin in free agency, which opens around the league on Sunday at 6 p.m.
Highsmith is set to become an unrestricted free agent this summer and Martin holds a $7.1 million player option in his contract that he needs to decide on by Saturday. Both are in line for the biggest paydays of their NBA careers this offseason.
But as the Heat prepares to enter free agency with a payroll already above the first apron and not far from crossing the ultrapunitive second apron, the best Miami can realistically hope for is to re-sign either Highsmith or Martin and not both players. Bringing back Highsmith and Martin would push the Heat, as presently constructed, past the second apron — a threshold that Miami prefers not to cross because of the onerous restrictions that come with it.
Crossing the second apron means the Heat wouldn’t be able to take back more money in a trade than it sends out, aggregate salaries in a trade or send out cash in a trade, among other limitations.
ESPN’s Bobby Marks, an ESPN front office insider and former team executive, told the Miami Herald that he projects Highsmith to get in the $8 million to $10 million range per season and Martin to receive the full $12.9 million nontaxpayer midlevel exception in free agency this offseason.
According to league sources, since NBA teams were allowed to begin negotiating with their own impending free agents on June 18, there have already been discussions between the Heat and Highsmith regarding a potential new contract. The Heat has interest in keeping Highsmith, and Highsmith has interest in returning to the Heat.
“I definitely want to stay in Miami,” Highsmith said after the Heat’s season came to an end in early May when asked about his impending free agency. “I love being here. My family lives here, my daughter lives here. So that’s a big priority for me, just to be around my daughter a lot. But I just got to figure it out and just take my time and understand it’s going to work itself out and everything happens for a reason.”
As a three-and-D wing who would fit on a long list of rosters around the NBA, Highsmith is expected to receive interest from a chunk of the league in free agency. But the Heat holds an edge over outside teams because Highsmith wants to return to Miami and the Heat could even try to get a commitment from Highsmith on a new contract before he hits the open market on Sunday.
“If the money is close, Haywood will stay in Miami,” Highsmith’s agent Jerry Dianis said this week to the Miami Herald. “You combine his perseverance to get to the NBA with his toughness, character and work ethic, he personifies Heat culture.”
This past regular season, Highsmith, 27, averaged career highs in points (6.1 per game), assists (1.1), steals (0.8), blocks (0.5) and minutes (20.7) while shooting career-bests from the field (46.5 percent) and three-point range (39.6 percent) for the Heat. He also appeared in a career-high 66 games and made a career-high 26 starts this past regular season.
Per 36 minutes, Highsmith averaged 10.7 points, 5.5 rebounds, 1.8 assists, 1.4 steals and 0.8 blocks this past regular season.
Highsmith (6-foot-5 and 220 pounds) also established himself as one of the Heat’s top defenders this past season, as the coaching staff trusted him to defend elite scorers such as DeMar DeRozan, Tyrese Maxey, Shai Gilgeous-Alexander and Trae Young for extended stretches.
In addition, Highsmith received extended playing time in the playoffs this past season. With the Heat’s injury issues lifting Highsmith into an even bigger role, he played 25.1 minutes per game during Miami’s short five-game playoff run that ended in the first round.
“Haywood will be a perennial All-Defensive player going forward,” Dianis said. “What’s really special about him is his versatility. His size, strength and 7-foot-1 wingspan allow him to guard one through five. Rudy Gobert is the Defensive Player of the Year, but he can’t guard Luka Doncic, Jayson Tatum, Jaylen Brown, Kyrie Irving or Paolo Banchero. Haywood does that and it gives a Hall of Fame coach like Erik Spoelstra a big advantage.”
Highsmith went undrafted out of Wheeling University in 2018 and spent the 2020-21 season in the German Basketball Bundesliga. Before initially joining the Heat in the middle of the 2021-22 season on a 10-day contract, Highsmith had played in just five regular-season NBA games.
“Haywood is an ascending player,” Dianis continued. “He’s 27 years old and durable. He also guards the other team’s best player every night. Combine that with 40 percent from three-point range and he is going to be one of the more highly coveted three-and-D players in free agency. He just wants to win championships.”
Highsmith is projected to be a cheaper free agent option for the Heat than Martin.
The only real path for the Heat to re-sign Martin, who turns 29 in September, is by convincing him to opt in to his $7.1 million player option by offering him a lucrative extension. The Heat is eligible to offer Martin up to a four-year, $78 million extension that would keep him with the Heat through the 2028-29 if he exercises his player option by Saturday’s deadline.
This type of contract would keep Martin’s cap hit for the upcoming season at a manageable $7.1 million amid the team’s salary-cap crunch, while also making up on the back end of the deal for the money he would lose this summer by opting in to a lower number than he would get in free agency. This extension would also represent long-term security for Martin.
If Martin opts out and enters free agency, he would likely command a salary for the upcoming season that would price out the Heat because of its tight salary-cap situation.
Martin, who went undrafted in 2019 out of Nevada, averaged career highs in points (10 per game) and assists (2.2 per game) in 64 games (23 starts) this past regular season. In Martin’s three seasons with the Heat, he has played in two Eastern Conference finals and one NBA Finals while also finishing just one vote away from being named the 2023 East finals MVP.
But considering that the Heat has a payroll in excess of $180 million, Miami currently isn’t able to fit both Highsmith and Martin under the $189.5 million second apron. Unless salary is shed in another move to create more room under the second apron, the best the Heat can realistically hope for is to resign either Highsmith or Martin this summer and not both.
