The Heat's contract extension has a twist, with stars (Giannis?) in mind

Sometimes, there's a message in the structure of the signing.

This seems to be the case for the Miami Heat and Nikola Jovic, who agreed to terms on a four-year, $62.4 million contract extension this week.

The Heat could have structured it in a straight line with pay raises each season, or even made it descending. Instead they staggered it. So it's clear Pat Riley, Andy Elisburg and ownership are looking a few years out, hoping to build a sustainable contender.

Miami structured Nikola Jovic's extension with a dip from Year 1 to Year 2 before going back up for Years 3 & 4, a league source told @spotrac.

26-27: $16.2M
27-28: $14.9M
28-29: $15.1M
29-30: $16.2M

Allows the Heat to have additional cap flexibility in 2027 and 2028 summers.
— Keith Smith (@KeithSmithNBA) October 7, 2025

With the two smaller payments being made in the middle two years, that has the potential to give the Heat a little more at their disposal for the 2027 and 2028 NBA free agent classes. This is a change from what most teams were targeting, since the 2026 free agent class was supposed to be extraordinary. But many of the stars, such as the Los Angeles Lakers' Luka Doncic have already extended to stay with their current teams.

It's very possible that many of the current projected free agents for 2027 and 2028 could extend by then as well. But as of now, the likes of Steph Curry and Kawhi Leonard and Trae Young could be available. And in 2028, Anthony Davis and Giannis Antetokounmpo could be among the prizes.

Giannis — Trevor Ruszkowski-Imagn Images

That doesn't include the stars who could decline player options -- including Nikola Jokic, Jovic's Serbian national team teammate.

It also aligns with the Heat's current salary cap and luxury tax situation.

2027-28 will be Year 1 of a potential extension for Tyler Herro.

2028-29 will be Year 1 of a potential extension for Kel'el Ware.

Some forward-thinking by Miami to frontload and backload Jovic's extension in Years 1 and 4, while keeping flexibility in Years 2 and 3. https://t.co/EqHcgX6JPy
— Keith Smith (@KeithSmithNBA) October 7, 2025

This also suggests that Miami will continue with its young core for a bit, looking to opportunistically add a whale, even if it takes longer than a year. Jovic himself is a big part of that plan -- an unselfish player who will fit with a variety of rosters.

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