Context, what to know about Riley’s comment on Heat’s cap space plan for ‘27
In an era when more and more top players are bypassing free agency and opting to sign contract extensions as soon as they’re eligible, it might have been surprising for Heat fans when team president Pat Riley said this week that Miami would like to be a “cap team” in 2027.
After all, only one free agent has joined another team on a max contract this decade, and the 76ers likely regret that 2024 decision to give $212 million guaranteed to Paul George in a four-year deal.
But the Heat is hardly alone. The Lakers, Clippers and Golden State have joined the Heat in intentionally carving out enough cap space to sign a max free agent in 2027.
“We’d like to be a cap team in ‘27,” Riley said. “I think that’s kind of a knowledge, just like we planned for four years from 2006 to 2010, and you have to sort of see a little bit into the future with other player contracts. When Dwayne [Wade] signed his contract and six other guys signed theirs, and it was the same year, they’re all going to be free agents, we started the plan.”
But at least in the Heat’s case, there is a method to what might be perceived as madness.
Some necessary context and points to keep in mind:
1). While the Heat enters the offseason determined to keep open salary cap space for an elite free agent in 2027, that will no longer be the plan if Miami is able to trade for a star before then.
For example, if the Heat succeeds in what is expected to be renewed efforts to acquire Giannis Antetokounmpo in the weeks ahead, Miami would work to sign the two-time MVP to an extension and abandon any plans to preserve more than $80 million in cap space in the summer of 2027.
2). Antetokounmpo is hardly the only All-Star player who can become a free agent in 2027, if he opts out of $62.8 million for 2027-28.
Seven other All-Stars also have player options they must exercise or decline in 13 months: Denver’s Nikola Jokic ($62.8 million), Cleveland’s Donovan Mitchell ($53.8 million), Dallas’ Kyrie Irving ($42 million), the Knicks’ Karl Anthony Towns ($61 million); Houston’s Kevin Durant ($46 million), Toronto’s Brandon Ingram ($42 million) and Washington’s Anthony Davis ($62 million).
Another All-Star, the Clippers’ Kawhi Leonard, will be a free agent in 14 months if he doesn’t sign an extension. So will Sixth Man of the Year Keldon Johnson of San Antonio, Phoenix’s Dillion Brooks, Brooklyn’s Michael Porter Jr. and Washington’s Trae Young.
3). The Heat’s current preference to preserve significant 2027 cap space isn’t being made entirely based on the hope that one of the top potential free agents will opt for free agency in 2027.
The fact the Heat and, to an extent, the Warriors are maintaining ample cap space for 2027 could pressure the Bucks into trading Antetokounmpo to a team of his choice in the coming months because the Bucks know they would risk losing him for nothing if a team that he likes has the room to sign him into cap space in 14 months.
Also, the Heat would be positioned to sign Antetokounmpo in 2027 if he’s traded to a team that he doesn’t choose to remain with past next season.
4). Miami’s cap space in 2027 also gives the Heat the ability to acquire a disgruntled star without sending equal money, or necessarily, any money back in a trade in the summer of 2027. In other words, a team with $80 million in space could take back a player earning $60 million in exchange for only draft picks and a cheap young player or two.
5). Though Riley did not rule out extensions for Tyler Herro or anyone else, he said Miami must be “disciplined” with doling out money.
So it would appear unlikely that Miami would offer an extension to Herro, who is set to earn $33 million next season in the final year of a four-year deal.
It also would seemingly make it unlikely that Miami would offer a multiyear deal to Andrew Wiggins if he opts out of a $30.2 million salary next season.
And it would make it very difficult to envision the Heat offering Norman Powell any more than a one-year deal in free agency in the months ahead.
“I think right now we have to show a level of discipline in extending out contracts or big-money contracts,” Riley said. “I think you’ve got to be a little bit careful with that. It’s not an indictment against any of our guys.”
6). The NBA’s salary cap for 2027-2028 is projected to be $173 million. The Heat has $73.9 million in committed money that season to Bam Adebayo ($56 million), Nikola Jovic ($14.9 million) and Dru Smith ($2.9 million).
But that number will grow if Miami gives an extension to Jaime Jaquez Jr. (who could become a restricted free agent that summer) and Kasparas Jakucionis ($4 million team option) and Kel’el Ware ($7.1 million team option).
It is possible to give Jaquez a sizable extension this summer — on top of keeping Jakucionis and Ware — and still have space for a max free agent in 2027. But that would depend on the size of the Jaquez extension, combined with what other salary the Heat takes on during the next 13 months — potentially including outlays to a first-round pick next month and another in June 2027, if it’s in the top 14. (Charlotte would get Miami’s unconditional 2028 first-rounder if the Heat picks in the top 14 in June 2027.)
Final say
Riley on Monday confirmed he doesn’t have final say on personnel issues and never has in his 31 years with the organization.
But a source said Riley has the authority to make some transactions, including draft picks, without needing specific approval from owner Micky Arison and CEO Nick Arison. The Arisons are aware of all transactions in advance but they don’t tell Riley & Co. what to do; instead the Arisons defer to the Heat’s personnel experts.
The source said the owners aren’t meddling in routine day-to-day operations.
Major trade ideas are presented to the Arisons, who have generally deferred to Riley’s wishes.
Also, as a point of clarity, both Micky Arison and Nick Arison - not only Nick Arison - share final say on anything deemed important enough to be brought to their attention.
“If [GM Andy Elisburg] and I decide on something and the boss doesn’t like it, he says no,” Riley said. “They own the team.”
Riley said he speaks with Elisburg more than anybody. They create scenarios “and I rely heavily on his opinion.”
Then they bring the ideas to the owners, and they decide whether to authorize Riley to move forward with it. But while the Arisons are made aware of all transactions in advance, Riley isn’t required to seek specific approval from the owners on matters that aren’t deemed to be major in nature.
This story was originally published April 29, 2026 at 10:51 AM.
