How Miami's trade of Haywood Highsmith affects Charlotte's pool of future draft picks

'… Every breath you take
And every move you make
Every bond you break
Every step you take
I'll be watching you

… Every single day
And every word you say
Every game you play
Every night you stay
I'll be watching you'

The lyrics above are from 'I'll Be Watching You,' a classic song by The Police about a man chasing after a scorned lover.

They also aptly describe how the Charlotte Hornets look at the Dallas Mavericks and Miami Heat.

Charlotte linked its future with Miami and Dallas at the 2024 NBA trade deadline when Mitch Kupchak acquired protected first round picks from the pair of successful franchises. Those picks, part of Jeff Peterson's ever-expanding war chest of future assets, fluctuate in value with every move Nico Harrison and Pat Riley make, and a recent trade executed by the latter is no exception.

Miami's trade of Haywood Highsmith is a curious move

Miami Heat forward Haywood Highsmith (24) reacts in the fourth quarter — David Richard-Imagn Images

Although Highsmith struggles to impact games on the offensive end, he is the type of quality defender that every playoff team needs, evidenced by his rise in Miami's pecking order on the wing once the playoffs started.

In 2024-25, the Heat's net rating raised by 2.4 points when Highsmith took the floor. The majority of his work was done against fellow reserves, but the work was impactful nonetheless, which made it confounding when Miami traded the 28-year-old away this week.

On Friday afternoon, Miami sent Highsmith and a 2032 second-round pick to the Brooklyn Nets for a protected 2026 second-round pick that is unlikely to ever convey to the Heat, meaning the trade will eventually end up as Highsmith and a 2032 second-round selection for...nothing.

Odd, right? That Miami would trade away a key member of their playoff rotation for not even peanuts, but the equivalent of some discarded shells? Not when you look at the granular salary cap details.

Miami slid under the tax by trading Highsmith, signaling a lack of interest in overspending to compete in 2025-26.

By sending Highsmith's $5.6M salary to Brooklyn for no cash in return, the Heat ducked the tax by $1.8M, escaping the laborious penalties of the new CBA by the skin of their teeth.

Barry Jackson, a 35-year veteran of the Miami Herald, said this about the move: 'This was, in my view, the first example this decade of Heat clearly worsening its roster for financial reasons, though I also get them not wanting to pay a tax when they don't have a championship contender...'

This was, in my view, the first example this decade of Heat clearly worsening its roster for financial reasons, though I also get them not wanting to pay a tax when they don't have a championship contender..... Heat didn't want to leave itself at risk of not being able to get… https://t.co/qL3N86H2uy
— Barry Jackson (@flasportsbuzz) August 15, 2025

Which brings us back to Charlotte.

The Heat project to be a fringe playoff team in 2025-26 with Bam Adebayo, Tyler Herro, and Andrew Wiggins leading the way.

The following season, 2026-27, is when the Hornets could potentially receive the Heat's first round draft pick. The selection is lottery protected, meaning if the Heat miss the playoffs in 2027 and are picking in the top 14 of the draft, Charlotte will get Miami's pick unprotected in 2028.

The Heat's unwillingness to pay the tax in 2025-26 may have ramifications going forward. Because they aren't going to spend exorbitantly this season, that allows them to spend big in future seasons with lesser penalties.

Teams pay steep luxury tax penalties when they exceed the tax limit in three out of four seasons, and not paying it this season opens up a world of flexibility down the line for a team with deep pockets in a desirable location.

That flexibility may make Miami's future first owed to Charlotte less valuable. The 2026 free agency pool is stocked with high-end talent, and if the Heat can add a veteran to their core of Herro and Adebayo with their newfound flexibility, they could be poised to make a run at the Eastern Conference crown in 2026-27 and send a late-first round pick to Charlotte instead of a juicy lottery pick in the top-14.

The Highsmith trade will have minimal effect on Miami in 2025-26 as they can supplement the loss of the veteran forward with some young, ascending players, but the impact it has on their cap sheet long-term are huge, as is the impact on the pick the Heat owe the Hornets.

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