How Butler trade impacts Heat’s flexibility in 2026. What Miami is now in position to do
Part 2 of a 2-part series.
The five-team trade that sent Jimmy Butler to Golden State and three players to Miami has left the Heat with far more flexibility than it would have otherwise.
But it also left Miami needing to get creative if it wants to achieve maximum salary cap space in the summer of 2026.
Miami no longer has the space to offer any player a max contract that offseason, though there are ways to create that space if Miami moves off the last year of Andrew Wiggins’ contract (for 2026-27).
It’s important to keep in mind that only one player has signed a max contract into cap space this decade – Paul George with Philadelphia last July. And George has been an immense disappointment for the 76ers.
On the flip side, Kevin Durant - who was the subject of Heat/Suns trade discussions before the Feb. 6 trade deadline - said last week that his intention always has been to become a free agent in 2026, at the age of 37.
As it stands, Miami wouldn’t have the cap space to sign Durant or any max-caliber player in 2026, though it could exceed the cap to re-sign a max player if Miami acquires that player via trade in the next 12 months. The Suns reportedly will explore trading Durant this summer, and Miami would get his Bird Rights (and the ability to surpass the cap to re-sign him) if it trades for him by next February.
In Butler discussions, the Heat initially did not want to take any significant money to clog its cap in the summer of 2026, but agreed to do so when the Warriors offered Wiggins and a first-round pick, largely because the Heat admires Wiggins’ game and wants to remain competitive.
If Wiggins exercises his $30.2 million player option for 2026-27, then the Heat would have $115 million committed to three players for that season: Bam Adebayo, Tyler Herro and Wiggins, with the cap projected to be $171 million in 2026-27. If the Heat, as expected, exercises player options for Jaime Jaquez Jr. ($5.9 million), Kel’El Ware ($4.6 million) and Pelle Larsson ($2.3 million), that would add up to $128 million committed to those six players.
Even before factoring in a few million dollars for a Heat first-round pick in 2025 or 2026 (and a Warriors first-round pick due to Miami by 2027), that would leave Miami with $43 million in space -- or actually about $33 million if required cap holds for empty roster spots are also factored in. And some of that space would be filled if Miami opts to re-sign Nikola Jovic, who is eligible for restricted free agency that summer, with Miami retaining a right to match outside offers simply by extending a $6.5 million qualifying offer.
Let’s say, hypothetically, that Jovic keeps ascending and gets $15 million per year in restricted free agency in 2026. That would leave the Heat with about $28 million in space without factoring in a few cap holds and any draft picks this June or June of 2026.
All of this presumes that Miami would part ways with Kyle Anderson, whose $9.6 million salary in 2026-27 is non-guaranteed.
Having salary cap space is less important than a decade ago, with most max players signing extensions before they’re eligible for free agency.
Of the top players potentially available in 2026, most likely will sign contract extensions before then: Luka Doncic (with the Lakers), De’Aaron Fox (with the Spurs), Atlanta’s Trae Young ($49 million player option) and potentially Memphis’ Jaren Jackson Jr., the Knicks’ Mikal Bridges and perhaps Chicago’s Coby White.
Other extension-eligible players who can become free agents in 2026 include Durant, Milwaukee’s Damian Lillard ($63 million player option for 2026-27), Boston’s Kristaps Porzingis, Portland’s DeAndre Ayton and Anfernee Simons, Sacramento’s Zach LaVine ($49 million player option), Houston’s Fred Van Vleet, Utah’s Colin Sexton, the Pelicans’ C.J. McCollum, the Lakers’ LeBron James and the Clippers’ James Harden.
Miami now likely would be unable to sign the best of those players into space, unless it trades Wiggins or, less likely, Adebayo or Herro, or unless Wiggins opts out in 16 months. Even just having Adebayo, Herro, Wiggins and Ware on the 2026-27 roster would leave Miami just short of a max salary slot.
With regard to 2026, one way taking Wiggins could backfire on Miami is if one of the top stars (Doncic, Jackson or Young) bypass extensions and enter free agency in 2026, which would be very surprising. Then Miami would need to find a team willing to acquire Wiggins’ expiring contract for 2026-27 in order to sign any of those players into cap space and pair that player alongside Adebayo and Herro.
Most stars now sign extensions and then ask for a trade if they become disgruntled. Besides keeping an eye on Durant and Lillard (who previously expressed interest in Miami), the future of Young also is worth monitoring from a Heat perspective.
TNT’s Chris Haynes recently said on X that Young’s future with Atlanta is “becoming murky,” adding that he wants to win and suggesting his future might be addressed this offseason.
At the moment, the Heat and Hawks have comparable records.
The Heat isn’t in danger of being a first or second apron team the next two seasons, and that could be helpful in facilitating trades. Miami could have as many as three tradable first-round picks at its disposal this July, depending on when the first-round pick due from Golden State conveys to Miami. That pick is top-10 protected in 2025 and 2026 and unprotected in 2027.
Miami owes first-round picks to OKC (in 2025 or 2026) and Charlotte (in 2027 or 2028). The Heat will keep its first round pick this June if it misses the playoffs; it goes to OKC otherwise. If the Heat misses the playoffs this season, Charlotte would get Miami’s unprotected first-round pick in 2028 from the Terry Rozier trade and OKC would get Miami’s unprotected first-round pick in 2026 from the Butler trade with Philadelphia in 2019.
Here’s a look at how the Butler trade affects the Heat’s ability to improve the roster this offseason.
This story was originally published February 18, 2025 at 11:44 AM.
