Examining Heat's Salary Cap, Decisions for 2025 NBA Free Agency After Loss to Cavs

Just two years after making it to the NBA finals, the Miami Heat look like a completely different team. Miami did make it to the postseason as a play-in team, but it never felt like a legitimate threat in the Eastern Conference.

While standouts like Tyler Herro and Bam Adebayo remain at the core of Miami's roster, the team's in-season trade of Jimmy Butler likely signaled the start of an incoming rebuild.

Now that the Heat's season is officially over, it's time for coach Erik Spoelstra and general manager Andy Elisburg to begin the building phase of this endeavor. Fortunately, Miami will have an extra first-round pick from the Butler trade and a reasonable amount of cap space with which to work in free agency.

Here, we'll dive into the Heat's cap situation, biggest looming contract decisions and potential free-agent targets for the 2025 NBA offseason.

While the Heat won't enter the offseason with a championship-caliber roster, it faces a more favorable situation than those of several other franchises. Most of Miami's biggest stars—including Herro, Adebayo, Andrew Wiggins and Terry Rozier will be under contract. Elisburg will have the cap flexibility needed to add more talent to the roster.

Miami is currently projected to be $14.9 million below the first luxury-tax apron and $26.8 million below the second apron. While one big addition could put the Heat over the second apron, Miami doesn't face major restrictions heading into the offseason.

The big question is whether Elisburg and Spoelstra believe they can immediately reload this offseason. With Herro and Adebayo in their playing prime, that could be the plan. However, preserving cap space, building through the draft and waiting until 2026 for a splash move could also be in the cards.

The Heat will have options, something that cannot be said about every Eastern Conference contender.

While Miami isn't in a position to tear down its roster further, it will have to make some potentially tough contract decisions.

The Heat have club options with Jaime Jaquez Jr. and Keshad Johnson, while Davion Mitchell and two-way players Isaiah Stevens, Josh Christopher and Dru Smith are set to be restricted free agents.

Duncan Robinson has an early-termination option, and Miami could be content to let him test the market. While the 30-year-old has been mostly good when healthy, he isn't quite the third star the Heat may want to partner with Herro and Adebayo.

If Miami is eager to find that star this offseason, it may look to the trade market—and possibly to Kevin Durant of the Phoenix Suns. The Heat, and team president Pat Riley, reportedly had interest in adding Durant when it dealt Butler to the Golden State Warriors.

"Miami debated cutting the Warriors out and dealing Butler to Phoenix for Durant, sources said," ESPN's Ramona Shelburne Brian Windhorst wrote in February. "Riley, after all, had wanted Durant for years."

If Miami does attack the trade market, it may have to part with players like Rozier and Wiggins.

The reality is that the Heat are unlikely to be especially active in either 2025 or 2026 free agency. This year's FA class isn't overwhelming, and while next year's class could potentially be great—Durant is set to be available, while Luka Dončić will have a player option—Miami may not have the flexibility to offer a max deal in 2026.

According to Barry Jackson of the Miami Herald, the Heat "to improve from draft and potential trades and growth by the young guys."

That would seem to indicate that Riley's plan is to draft, develop and build around Herro and Adebayo. In the short-term, Miami may look to add point-guard depth and some outside-shooting help.

Miami is unlikely to go after a true star to fill those needs, but a veteran point guard like Malcolm Brogdon or Cameron Payne could make sense as depth. Adding a range shooter like Malik Beasley or Luke Kennard would also be logical.

If Jackson is correct about Miami's plans post-Butler, the Heat are likely to have a quiet foray into free agency.

*Cap and contract information via Spotrac.