Heat trade Haywood Highsmith to Nets (likely for nothing in return) to move below luxury tax

MIAMI — In a move that takes the team below the punitive NBA luxury tax, the Miami Heat have traded forward Haywood Highsmith and a 2032 second-round draft choice to the Brooklyn Nets.

With the Nets currently operating $22.5 million below the 2025-26 NBA salary cap and able to take on salary, the Heat in return received only a conditional 2026 second-round pick, one that is not expected to convey due to the restrictions attached. The pick from the Nets to the Heat conveys only if Brooklyn finishes with one of the five best records in the NBA this coming season.

While Highsmith, 28, has stood as a reliable defensive presence for the Heat, he currently is recovering from recent knee surgery that could have him out for the start of the season. In addition, he is an impending 2026 free agent, with the Heat positioned to potentially clear salary-cap space next summer.

With Highsmith out of the mix, it potentially opens playing time for second-year forward Keshad Johnson, whose 2025-26 salary in June was guaranteed for the coming season. The trade of Highsmith potentially also could open playing time for Jaime Jaquez Jr. and Pelle Larsson, among others.

With the move reducing the Heat to 13 players under standard contract, it will require the Heat to eventually add an additional player on such a standard deal.

Friday’s move potentially opens the door for a return by point guard Dru Smith, a restricted free agent who is recovering from last season’s Achilles tear and no longer is eligible for a Heat two-way contract. The Heat continue to have a qualifying offer in place for Smith, allowing them to match any potential outside offers.

A defensive stalwart, Highsmith was added by the Heat as an emergency pandemic replacement player in 2021. He then emerged as a reliable defensive component, often cast, at 6 feet 5, as a undersized power forward.

Highsmith is in the second year of the two-year contract he signed to return to the Heat in free agency during the 2024 offseason, due $5.6 million for the coming season.

Prior to Friday’s trade, the Heat stood $1.6 million above the 2025-26 luxury-tax threshold, in danger of moving into the highly punitive and restrictive repeater tax. The Heat now have room under the luxury tax to sign any player to a veteran-minimum contract, regardless of NBA experience.

In addition, the Heat are now $9.5 million under the first luxury-tax apron, which, for them, stands as a hard cap for the coming season due to a previous deal that triggered the hard cap.

With the dealing of the 2032 second-round pick, the lone future second-round pick the Heat have available to trade is a 2027 selection. In addition, the Heat owe either a lottery-protected 2027 first-round pick or unprotected 2028 first-round pick to the Charlotte Hornets to complete the 2024 acquisition of Terry Rozier.

By sending out Highsmith and not taking on any salary, the Heat receive a $5.6 million trade exception that can be utilized for a year.

Whether Highsmith remains with the Nets is uncertain. Brooklyn likely will have to cut two players on guaranteed salaries by the start of the season to fall to the limit of 15 under standard contract. Should Highsmith be waived by the Nets he would be ineligible to return to the Heat for a year unless he first moves to a team other than Brooklyn.

Highsmith, who went undrafted out of Division II Wheeling University in 2018 and previously spent time in the Philadelphia 76ers organization, spent four seasons with the Heat, with Miami making the postseason each season. He appeared in 74 games (42 starts) last season, averaging 6.5 points, 3.4 rebounds, 1.5 assists in 24.6 minutes per appearance, shooting .458 from the field.

With the trade of Highsmith, the 13 players currently under standard contract to the Heat are Bam Adebayo, Tyler Herro, Andrew Wiggins, Norman Powell, Kel’el Ware, Davion Mitchell, Nikola Jovic, Simone Fontecchio, Jaquez, Larsson, Rozier, Johnson, and 2025 first-round pick Kasparas Jakucionis.

Under two-way contract to the Heat are former Orlando Magic G League player Myron Gardner and former Florida Atlantic University 7-footer Vlad Goldin.

Teams are allowed to carry a maximum of 15 players under standard contract and three under two-way contract during the regular season, which for the Heat opens Oct. 22 on the road against the Magic.

Prior to the start of the regular season, teams may carry up to 21 players under contract. In addition to the 15 currently under contract, the Heat this week signed Orlando G League prospect Ethan Thompson to a camp tryout deal and are expected to sign undrafted Utah State guard Gabe Madsen to a similar deal. In addition, journeyman center Kai Jones worked out this week for the Heat at Kaseya Center.

In an ironic twist, Powell, acquired last month from the Los Angeles Clippers, recently paid Highsmith to acquire Highsmith’s No. 24 that Powell had worn at his previous NBA stops in Toronto, Portland and Los Angeles. Highsmith at the time had switched to No. 8 with the Heat.

As part of the Heat’s offseason makeover, gone from last season’s playoff roster are Highsmith, Duncan Robinson, Kevin Love, Kyle Anderson and Alec Burks, who remains an unsigned free agent. The Heat also did not bring back two-way players Josh Christopher and Isaiah Stevens.

The Heat open training camp Sept. 30 at Florida Atlantic University.