At one point this offseason, it seemed all but clear that the Miami Heat were building toward having complete financial flexibility (via cap space) heading into the summer of 2026. 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 Heat don't need cap space, but they need to be smart
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.
Free agency didn't always give players that luxury by signing outright new deals.
It's time for the Heat to catch up with that mentality. So, more than cap space, what the Heat needs is to replenish their draft asset inventory, while also maintaining tradable contracts on their roster.
The first part of that long-term plan should come with time. However, the second part (balancing tradable contracts) could be difficult.
And that's what should be at the forefront of the Heat's front office decisions over the next couple of months. The last thing the Heat needs to do is hurt itself by signing a Tyler Herro or Nikola Jovic to untradeable contract extensions.
That would defeat the point of not only the Heat losing their cap space for 2026, but also eliminate the Heat's other chances of putting themselves in a position to trade for a star player.
While it may not be the end of the world that the Heat are no longer setting themselves up to have prime cap space for next summer, they also can't be irresponsible when it comes to handing out contract extensions over the next few months.
It's certainly something to keep a close eye on for Miami.