How Wiggins’ unusual new deal impacts Heat’s flexibility the next two years
Andrew Wiggins’ unusual new contract, agreed to on Monday, will not give the Heat additional flexibility to augment its roster this summer but will give the Heat more flexibility to achieve that next summer.
Wiggins and the Heat on Monday executed a unique arrangement in which he opted into his $30.2 million contract for next season.
But as part of the deal, Wiggins committed to the Heat for a bargain-basement $16.5 million for the 2027-28 season, with a $17.5 million player option for the 2028-29 season.
The Heat preferred this path because it gives them additional flexibility next summer. Wiggins is trade eligible, but the Heat plans to keep him.
So the Heat will enter Tuesday evening’s start of free agency with 10 players: Giannis Antetokounmpo and Bobby Portis (its acquisition from Milwaukee cannot be executed until July 6), Bam Adebayo, Andrew Wiggins, Nikola Jovic, Davion Mitchell, Pelle Larsson, Dru Smith, Myron Gardner and Ryan Conwell (not yet signed, but will sign a standard contract at some point).
That means the Heat, which is operating under a $209 million hard cap, can use $12 million of its $15.1 million midlevel exception, plus sign two or three players to minimum deals. That $12 million would increase if Miami is able to find a taker for Jovic without taking as much money back.
If the Heat splits its midlevel exception among two players, then it would need to sign two players to minimum deals to reach the required 14-player limit. If the Heat uses the midlevel on one player, then it would need to sign three players to minimum deals.
For the Heat, the benefit of the Wiggins deal will come next summer.
Barring trades or additional multiyear contracts added to the Heat’s payroll during the next 12 months, Miami likely will have at least $152 million committed for five players in 2027-28: Adebayo ($56 million), Antetokounmpo ($61 million, if he signs an extension with Miami as expected when he becomes eligible in December), Wiggins ($16.5 million), Jovic ($15 million) and Conwell (expected to be in $3 million range if Miami uses the second-round pick exception to sign him).
That means the Heat would be $61 million below the projected $213 million tax line for 2027-28. And that flexibility would allow the Heat to use a full $16 million mid level exception in July 2027, as well as a biannual exception. The Heat also could take more money than it sends out in trades next summer.
The salary cap is projected to be $173 million in 2027-28. But even though the Heat would have just $152 million in salary (provided Antetokounmpo signs the extension) in this scenario, Miami would not be operating as a “room team” under the salary cap next summer because cap holds that are required for empty roster spots would essentially tie up that cap space.
So Miami — which is expected to be a tax team this upcoming season — could avoid the tax in 2027-28 (which would trigger the onerous repeater tax) and still have the ability to improve its roster next summer, as it enters year two of a potential five-year commitment from Antetokounmpo.
The Heat believes that added flexibility next summer outweighs the benefit of having more money to spend this summer, though more money this summer might have allowed the Heat to sign Norman Powell to a new contract.
This story was originally published June 29, 2026 at 1:59 PM.
