The Miami Heat are reportedly “leaning against using” the waive-and-stretch provision before this week’s deadline, according to Anthony Chiang of the Miami Herald.
Heat Would Rather Not Use Waive-And-Stretch Provision
The stretch provision allows for a team to waive a player and stretch his remaining salary on the salary cap twice the number of years remaining on the player’s contract plus one year.
Chiang noted that by waiving and stretching a player like Terry Rozier, it would reduce his cap hit from the $26.7 million he’s owed this upcoming season in the final year of his contract to an $8.9 million cap hit in each of the next three seasons.
However, the main drawback of an NBA team using the stretch provision is that a player’s salary remains on that club’s books beyond the initially scheduled year.
Instead of using the waive-and-stretch provision, the Heat could just waive Rozier and create an additional $1.7 million of room below the tax line because only $24.9 million of Rozier’s $26.6 million salary for the 2025-26 season is guaranteed.
Such a move would give Miami enough space under the luxury tax threshold to add another player to a standard contract before the start of the season.
Miami Remains $1.7 Million Under The Luxury Tax Threshold
Because the Heat have already finished as a luxury tax team in each of the past two seasons, they’re working toward avoiding the luxury tax for this upcoming campaign to avoid penalties.
Per Spotrac, the Heat are approximately $1.7 million under the luxury tax threshold and about $7.2 million below the first apron of $195.9 million.
On Aug. 15, Miami traded forward Haywood Highsmith to the Brooklyn Nets to get under the tax line and create roster flexibility. The Heat also sent a second-round pick in 2032 to the Nets, while Brooklyn gave a conditional second-round pick in next year’s draft to Miami.
The Heat currently have 14 players on standard contracts for this upcoming season — one below the NBA regular-season limit of 15 players on standard deals.
NBA teams are allowed to carry up to 21 players during the offseason and preseason, including up to three two-way players. Miami has a total of 17 players signed to contracts.
The Heat open training camp on Sept. 30 at Florida Atlantic University in Boca Raton.
