Pelle Larsson To Sign Four-Year Extension With Heat

Larsson will earn $2.3MM this season after Miami exercised its team option on his contract in June. He would have been on track for restricted free agency in 2027, but instead will sign a four-year extension that features a mutual option — both a player and a team option — for the 2030/31 season, per Charania.

Larsson signed a three-year, minimum-salary contract after he was selected 44th overall in the 2024 draft. Miami acquired his rights in a draft-day trade with Houston.

According to Ira Winderman of The South Florida Sun Sentinel (Twitter link), the former Arizona Wildcat’s extension features an ascending structure and will start at around $13.5MM in 2027/28.

Larsson’s new deal will come in lower than the projected non-taxpayer mid-level exception for ’27/28, notes Keith Smith of Spotrac (via Twitter), and is comparable to the four-year, $62.4MM rookie scale extension Nikola Jovic received from the Heat last year, tweets Barry Jackson of The Miami Herald.

Larsson’s extension is also similar in length and structure to the contracts Nickeil Alexander-Walker ($60.6MM over four years) and Quentin Grimes ($60MM over four years) signed in 2025 and 2026, respectively. Alexander-Walker received his deal from Atlanta via sign-and-trade, while Grimes was signed by the Lakers using cap room.

After receiving some rotation minutes as a rookie in 2024/25, averaging 4.6 points, 1.7 rebounds and 1.2 assists in 55 regular season outings (14.2 minutes per game), Larsson emerged as a critical player for the Heat in his second season. In 70 appearances in ’25/26, including 54 starts, he averaged 11.4 PPG, 3.5 RPG and 3.4 APG on .496/.323/.797 shooting in 26.4 MPG.

Larsson received consistent praise from head coach Erik Spoelstra throughout last season for his willingness to do the dirty work and make unselfish, winning plays. Charania (Twitter links) refers to the 25-year-old guard/forward as a “foundational piece” who is expected to play a “major rotation role” for the team in 2026/27.

Larsson is the top player on the Swedish national team and had some big performances for his home country during a handful of World Cup qualifying games this summer.