(Mandatory Credit: Wilfredo Lee/AP Photo)
At his end-of-season press conference last May, Miami Heat president Pat Riley hinted at the organization wanting to duck the luxury tax to avoid repeater tax penalties for the 2025-26 season.
By a series of moves, the Heat got under the luxury tax last summer, currently $1.6 million below that threshold. Though Saturday marked the first day the Heat could sign a veteran to the prorated minimum without exceeding said the tax.
Miami has one open roster spot; Jahmir Young, Vladislav Goldin and Myron Gardner occupy the team’s three two-way spots, which don’t count against the cap.
Don’t expect Heat to immediately fill that 15th roster spot:
While they can technically exceed that threshold, don’t expect them to, according to Anthony Chiang of the Miami Herald.
“But the expectation, according to a league source, is the Heat won’t immediately fill its open standard roster spot in part to preserve salary-cap flexibility for potential trades and late-season signings,” Chiang wrote Friday.
“By not immediately signing a player to a minimum contract to fill its open standard roster spot in the coming days, the Heat will remain about $1.6 million below the luxury tax line. This allows the Heat to take back about $1.6 million more salary in a potential trade while still avoiding the luxury tax.
“If the Heat signs a player to a minimum contract any time soon, that wiggle room to take back more salary in a potential trade while still remaining under the luxury tax threshold would be gone.”
Teams who are in the luxury tax for four straight years or four years in a five-year period are subject to the repeater tax. The Heat were a luxury tax teams each of the previous two seasons. Thus, their actions suggest they are hoping to avoid triggering the repeater tax.
The tax bracket for teams who are in the repeater tax also becomes more onerous this year; repeater teams will be charged $3 for every $1 they are in the tax, and that surcharge increases every $5 million. For more on that, click here.
Having the trade flexibility will be important come the trade deadline. The Heat are currently 14-11, in the midst of a four-game losing streak. Unless they crater, history suggests the Heat will be more buyers than sellers.
Miami’s had a pressing need for a backup big all summer. The market is dryer than a summer day in the Saharas, so it’s likely not worth dipping into barring injury.
Do you think the Miami Heat should immediately fill their 15th roster spot?! Let us know in the comments!
***
To check out our other content, click here.
Follow Hot Hot Hoops on Twitter/X here!
Follow Hot Hot Hoops on Instagram here!
Check out Hot Hot Hoops on Facebook here!
Subscribe to our YouTube channel here!