The Miami Heat are leaning against using the waive-and-stretch provision before Friday’s deadline.
If the Heat were to waive-and-stretch Terry Rosier, for example, they would stretch his $26.7 million expiring contract to an $8.9 million cap hit in each of the next three seasons. The Heat actually could just waive Rozier and create an additional $1.7 million of room below the tax line because only $24.9 million of Rozier’s $26.6 million salary.
The Heat are already under the luxury tax following their trade of Haywood Highsmith to the Brooklyn Nets. The Heat are about $1.7 million under the luxury tax threshold and about $7.2 million below the punitive first apron of $195.9 million. Because of their trade for Norman Powell, they cannot exceed the first apron.
The Heat were a luxury tax in each of the past two seasons.
