Sun Sentinel Palm Beach Edition
Heat bypass ‘stretch’ deadline
The Miami Heat opted Thursday to bypass utilizing the NBA’s “stretch provision” at that deadline, meaning the guaranteed salary on their books for the 202324 season no longer can be reduced other than by trade or buyout.
The league’s annual Aug. 31 deadline allows teams to stretch the remaining payments due to a waived player over twice the number of years remaining on a deal plus one, as a means of alleviating the hit against the salary cap and luxury tax, provided such moves are made prior to Sept. 1.
With the Heat hard up against a new, onerous level of the luxury tax, there had been speculation earlier this offseason of such a move with the final season on the contract of Kyle Lowry, with the 37-year-old point guard ending last season as a reserve.
Instead, the Heat rebuked such speculation in June and then bypassed the stretch deadline.
Lowry’s $28,333,334 salary for the upcoming, final season on his threeyear, $85 million contract now will count fully in 202324 against the Heat payroll or the payroll of an acquiring team. The stretch provision would have allowed the Heat to count one third of that amount against their cap over each of the next three seasons. Should Lowry be dealt, he would not be eligible to be stretched by such an acquiring team.
By electing not to invoke the stretch provision with Lowry or any other player on the roster, it leaves such players available for trades.
The Heat, hard up against the luxury tax at the times, previously utilized the
stretch provision on the contracts of forwards A.J. Hammons in 2018 and Ryan Anderson in 2019, carrying those salaries on their books in seasons beyond the years the players were waived. The move with Ansderson in 2019 opened salary-cap space needed to add Jimmy Butler.
Unlike the introduction of previous NBA Collective Bargaining Agreements, the one introduced for the coming season did not include an amnesty provision to offload a contract without a future impact on the salary cap or luxury tax. The Heat utilized the amnesty provision in 2013 by dropping the contract of forward Mike Miller.
With 13 players under standard contract for the coming season (two-way contracts or tryout deals do not count against the luxury tax or salary cap), the Heat have $179.3 million in committed salary. With the salary cap set at $136 million and the luxury tax at $165.2 million, the Heat already stand well above both figures.
However, the NBA’s new CBA now features dual tax “aprons” that limit some personnel moves, with the first set at $172.3 million and the second at $182.7 million. It is that second figure that the Heat are attempting to maneuver below, thus the question of whether the stretch provision would have been put into play.
Teams are required to have at least 14 players under standard contract, which still potentially leaves the Heat with work to do with the books.
Potentially reducing or removing the luxury-tax hits would be a major payroll shakeup with a blockbuster trade, with Portland Trail Blazers guard Damian
Lillard two months ago having requested a trade to the Heat.
While the luxury tax and luxury-tax payments are not calculated until season’s end, limitations against utilizing some salary-cap exceptions and trade exceptions are based on where a team stands at the time of such moves.
Currently under standard contract to the Heat are Bam Adebayo, Tyler Herro, Caleb Martin, Josh Richardson, Kevin Love, Duncan Robinson, Haywood Highsmith, Thomas Bryant, Nikola Jovic, Jaime Jaquez Jr., Orlando Robinson, Butler and Lowry. Of those 13, Orlando Robinson is the lone player without a fully guaranteed contract for 2023-24. The team also has Jamal Cain, Jamaree Bouyea and Dru Smith under two-way contract. With Drew Peterson, Cole Swider, Justin Champagnie, Caleb Daniels and Alondes Williams having signed tryout Exhibit 10 deals, it has the Heat at the NBA offseason limit of 21 players under contract.
The Heat open training camp Oct. 3, with their preseason schedule opening Oct. 10 and their regular season on Oct. 25.