"However, that may no longer be the case, especially with the extension decisions they'll have to make between now and the next free-agency period. Theoretically speaking, the Heat could still carry cap space heading into next summer, but because of the decisions they have to make on Tyler Herro, Nikola Jovic, and Norman Powell relatively soon, it won't necessarily be genuine cap space."
"The Heat will be forced to make some big decisions on extensions for each one of those players, either before the start of this season or early on in the summer next year. And even if they don't break the bank by re-signing any of them, those moves are going to all but eliminate all the theoretical cap space that fans may be hoping the Heat carries into next summer."
"The good news is that the Heat don't necessarily need cap space. The days of free agency being the primary springboard toward building a roster for a star-hunting franchise like the Heat are long gone. Nowadays, stars aren't making it to free agency. They're usually traded a year or two before that even happens, allowing them to sign an extension in their new landing spot for the maximum money possible."
The Miami Heat once appeared set to enter 2026 with significant cap flexibility, but upcoming extension decisions for Tyler Herro, Nikola Jovic, and Norman Powell threaten that position. Extension choices likely must occur before the season or early next summer, and even modest re-signings will largely eliminate theoretical cap space. The franchise does not strictly need free-agent cap room given modern trading and extension trends, but it does need to replenish draft assets and preserve tradable contracts. Balancing those tradable contracts will be difficult and should drive front-office decisions in the coming months to avoid self-inflicted roster limitations.
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