By signing Nikola Jovic to a four-year, $62.5 million extension, the Miami Heat are making it clear that they have no plans to prioritize cap space—or make a major trade this season.
No, the dollar amount, which was first reported by ESPN’s Shams Charania, is not considered cornerstone money. Jovic’s new extension kicks in during the 2026-27 campaign, and will never take up more than 9 percent of the salary cap.
Still, locking down Jovic now says a great deal about the franchise’s faith in him, and its overall direction. For starters, it takes the Heat out of the cap-space game next summer, and potentially during the 2027 offseason. This doesn’t mean they are no longer in the market for a superstar, but it does prove they understand they’ll have to trade for one.
Put the Heat’s superstar pursuit on hold
Jovic could, in theory, be part of any big-time star package—just not until the 2027 offseason.
While he is trade-eligible this season, the poison pill provision stipulates that he’d count for $13.4 million worth of inbound money for another team, but only $2.4 million in outgoing money for Miami. Basically, it is much harder to move him in-season than over the summer, when he’ll simply count as the starting salary in his new deal.
Anyway, the Heat were already hard-pressed to build a top-tier blockbuster package when looking at their available draft equity. Competing for bigger names gets a lot harder now that Jovic is essentially off the table.
This isn’t a decision the Pat Riley- and Andy Elisburg-leg front office makes without placing a premium on Jovic’s internal value. At the very least, they are making it clear that his floor-spacing skill set is mission critical at both the power forward and center spot. It might even be a signal that they consider him the core frontcourt piece next to Bam Adebayo, which sets up an interesting approach to Kel’el Ware’s development.
More extensions could follow in Miami
Regardless of what this news says about Miami’s belief in Jovic, it may not be the last extension the team hammers out.
Tyler Herro is eligible to sign a three-year deal worth up to $150 million right up until about opening night. Though the number should be considered negotiable, tacking Jovic’s money onto the future cap sheet suggests they won’t hesitate to lock down their All-Star guard.
The same goes for Norman Powell. Miami has already hinted at a willingness to lock him down, even as speculation swirled over their obsession with cap space. Getting one extension out of the way makes it more likely to broker a new contract with him soon, or before he enters free agency next summer.
None of this is written in stone. Miami may ultimately prefer the optionality of having bigger trade-eligible salaries to use near the trade deadline.
Without question, though, the Heat are making at least one statement ahead the regular season: Despite facing so much that is unknown, they are unafraid to continue re-investing in what’s already in place.
