The Heat and Nets have agreed to a trade that sends wing Haywood Highsmith to Brooklyn along with a 2032 second-round pick in exchange for a protected 2026 second-rounder, reports Shams Charania of ESPN (Twitter links).
The Nets have officially confirmed the deal, announcing that they’ve acquired Miami’s unprotected 2032 second-round selection and Highsmith in exchange for their own top-55 protected 2026 second-rounder.
It’s a financially motivated deal for the Heat, who will move under the luxury tax line as a result of the move. Miami entered the day operating about $1.6MM above the tax threshold with 14 players under contract.
Sending Highsmith’s expiring $5.6MM contract to Brooklyn will give the Heat nearly $4MM in breathing room below the tax, with at least one standard roster spot to fill before the season begins — the club will likely keep its 15th roster spot open to start the season to avoid going back above the tax line.
The Heat were always considered likely to duck the tax this season in order to reset their repeater clock.
When I identified Miami earlier this month as a good bet to make a cost-cutting move, I mentioned Highsmith as a potential trade candidate and speculated that he should have a little value based on his play as a three-and-D wing last season. The 28-year-old made 74 appearances (42 starts) for the Heat, averaging 6.5 points and 3.4 rebounds in 24.6 minutes per game and posting a .458/.382/.721 shooting line.
However, word broke last Friday that Highsmith had sustained a torn meniscus during an offseason workout and underwent surgery to address the injury. The recovery process is expected to sidelined him for at least eight-to-10 weeks, jeopardizing his availability for the start of the season and reducing his value as a trade chip, which is why the Heat had to give up a second-round pick to move him.
Miami will create a trade exception worth Highsmith’s outgoing salary ($5,616,000), which the club will have one year to use.
As for the Nets, they continue to use their cap room to stockpile draft assets, having acquired a pair of first-round picks in separate deals for Michael Porter Jr. and Terance Mann earlier this summer. It’s unclear whether or not Highsmith will be part of their plans for the 2025/26 season, given that there may be a roster crunch in Brooklyn, but taking on his contract puts only a small dent into their remaining cap space.
As Bobby Marks of ESPN tweets, Brooklyn still has $22MM in room after accounting for Cam Thomas‘ $12.1MM cap hold, though that figure doesn’t include reported two-year, $12MM deals with Day’Ron Sharpe or Ziaire Williams, which aren’t yet official. One of those signings could be completed using the room exception, but at least one will have to use the Nets’ cap space.