Examining Heat's Salary Cap, Decisions for 2026 NBA Free Agency after Play-In Loss
A few seasons ago, the Miami Heat were in the NBA finals. Following a trying 2025-26 campaign, they're in the process of reloading.
An up-and-down season ended with a loss to the Charlotte Hornets in the NBA Play-In.
Miami still features standouts Tyler Herro and Bam Adebayo, but defensive deficiencies prevented the Heat from ever feeling like a legitimate contender. Despite making the play-in tournament, the season's highlight was Adebayo's 83-point outing against the lowly Washington Wizards.
In other words, the Heat still have some centerpieces, but they're also searching for a new identity. That'll be part of the challenge facing coach Erik Spoelstra and vice president Andy Elisburg this offseason.
Here, we'll dive into Miami's projected cap situation, biggest looming contract decisions, and potential free-agent targets for the 2026 NBA offseason.
2026 Salary Cap
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Spoelstra and Elisburg have work to do this offseason, but they won't be starting from scratch. Miami is slated to have 10 players under contract or facing a club option, including Adebayo and Herro.
Andrew Wiggins also has a $30.2 million player option that he very likely will exercise.
The Heat are widely expected to be significant players this offseason. They're projected to be $43.3 million below the first luxury-tax apron and $56.3 million below the more restrictive second apron. If Miami decides to chase a star in free agency or on the trade market, it will have that flexibility.
However, the Heat will probably choose to keep their 2026 first-round pick and add a piece from the talented draft pool in June.
Top Contract Decisions
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In addition to examining external options, the Heat will have a few contract decisions to make over the summer. Adebayo is under contract through the 2027-28 season—with a player option the following year—but Herro is entering the final year of his current deal.
Herro and the Heat failed to work out a new deal, which likely leaves the team with two options this summer. Miami could make another extension offer or trade him. It's unlikely that the Heat will simply let him play out the final year of his contract—though holding him for a deadline deal is certainly a possibility.
Miami will also have to sort out the future of critical role player Norman Powell. The newly-crowned All-Star is set to be a free agent but has made it known that he'd prefer to stay with the Heat.
"Hopefully there's some good synergy from what they've seen that I bring to the table," Powell said, per Anthony Chiang of the Miami Herald. "And hopefully a deal is able to be done sometime."
Simone Fontecchio is also slated to be unrestricted free agents. Pelle Larsson's contract includes a team option for 2026-27.
Free Agents to Pursue
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The list of external candidates for Miami may be limited since few true stars are expected to hit the open market.
Should a superstar like Giannis Antetokounmpo become available in a trade, of course, the Heat will likely pounce. Otherwise, their first focus may be on player retention.
Miami will likely work to retain Powell, and they'll need to make a decision on Wiggins if he opts out.
Bleacher Report's Zach Buckley listed Powell as Miami's "dream" target in free agency, with Wiggins as a "realistic" target and Chicago Bulls center Nick Richards as an optimistic target.
LeBron James will be a name to watch if he's interested in signing a minimum deal in free agency, though a return to L.A. or the Cleveland Cavaliers may be more likely for him. Miami will probably also consider adding a backup center like Mo Wagner or a 3-and-D standout like Kelly Oubre Jr. (player option) when rounding out the roster.
*Cap and contract information via Spotrac.
