This month, the Miami Heat gave one of their young veterans a notable new contract. Nikola Jovic is set to make $62.4 million over four seasons, beginning in 2026-2027.
As the details of the deal emerged, the Heat included an unusual dip in salary during the second season, which picks back up and concludes with the original salary in the final year.
via @KeithSmithNBA: 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. Allows the Heat to have additional cap flexibility in 2027 and 2028 summers.
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.
— Keith Smith (@KeithSmithNBA) October 7, 2025
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.
The Miami Heat have been looking for a new star to add to their team well before Jimmy Butler forced his way over to the Golden State Warriors.
Last year, the Heat were viewed as the favorites to land Damian Lillard, before Giannis Antetokounmpo and the Milwaukee Bucks swooped in and convinced the Portland Trail Blazers to trade their homegrown star to Wisconsin.
There was a brief moment the Miami Heat were linked to Kevin Durant, but that idea never gained any real steam before Durant was ultimately shipped to the Houston Rockets.
The Heat are always going to look for ways to remain as contenders as long as Pat Riley’s running the front office, and Erik Spoelstra is in the coach’s chair. Therefore, finding financial flexibility in future offseasons was key for Miami.
The Heat didn’t do anything innovative with the structure of Jovic’s deal, but it is rare for an extension see a salary decrease over time.
It’s difficult to imagine other NBA teams will manage to turn the Heat’s recent deal into a trend. While some players have agreed to deals that help their team out, most want to lock in as much as they can when the opportunity presents itself. And for a player in Jovic’s position, he’s securing his first big deal since landing in the NBA in 2022.
During his first three seasons, the veteran forward made between $2.2 and $2.4 million in salary. This year, Jovic is set to make $4.4 million on the 2025-2026 team option the Heat picked up last October.
The former 27th overall pick out of Mega Basket played 46 games last season. In 25.1 minutes of action, Jovic has produced an average of 10.7 points, 2.8 assists, and 3.9 rebounds per game.
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