Heat gives four-year, $60 million extension to Larsson. What it means

Miami Heat admin September 18, 2026 0 Comments

Heat gives four-year, $60 million extension to Larsson. What it means

A year after Pelle Larsson established himself as a reliable rotation piece, the Heat rewarded him with a four-year, $60 million extension on Friday, a league source confirmed.

Larsson is due to make $2.3 million this season; the four-year extension starts in 2027-28, with a $13.5 million salary that season and gradual increases the following three seasons. The fourth year is a mutual option.

Without the extension, Larsson would have been a restricted free agent next summer, with the Heat holding the right to match outside offers.

The deal is similar to the four-year, $62.5 million extension given to Nikola Jovic last September – a deal that begins this season.

According to a source, the Heat moved forward with the extension because the front office and coaching staff view Larsson as a big part of the team’s future.

Larsson, a second-round pick out of Arizona in 2024, averaged 12.5 points, 3.5 rebounds and 3.4 assists in 70 games and 54 starts last season, his second in the league. He shot 49.6 percent from the field and 32.3 percent on three-pointers.

Players he defended shot 46 percent against him, equivalent to what those players shot overall. But that doesn’t fully take into account his defensive peskiness and tenacity, his ability to draw charges, and his willingness to take repeated shots to the face.

Even though Larsson was the 14th pick of the second round in 2024 (44th overall), he has emerged as one of the five best second-rounders in that draft (along with Ajay Mitchell, Cam Spencer, Kyle Filipowski and Jaylen Wells).

He also has begun to cement his spot on the list of Heat second-round success stories, with Mario Chalmers, Josh Richardson, Grant Long and Eddie House.

Even with Larsson’s extension, the Heat will enter the 2027-28 well below the projected $213 million luxury tax threshold.

Barring trades or additional multiyear contracts added to the Heat’s payroll during the next 12 months, Miami likely will have $184.9 million committed for eight players in 2027-28: Bam Adebayo ($53.4 million), Giannis Antetokounmpo ($62.8 million, if he opts in an signs an extension; very slightly less if he opts out and signs a new deal with Miami), Wiggins ($16.5 million), Bobby Portis ($15.6 million player option), Nikola Jovic ($14.9 million), Larsson ($13.5 million), Klay Thompson (has a $5.9 million player option), and Ryan Conwell ($2.3 million).

(The Heat also holds team options for 2027-2028 on Dru Smith at $2.9 million and Myron Gardner at $2.5 million.)

This and that

▪ The Heat plans to keep the 15th roster spot open for a while, in case a needle-moving player becomes available in free agency.

▪ Former Kansas wing Tre White continues to pursue a return to college basketball through the legal system and hasn’t informed the Heat if he will accept the team’s two-way contract offer

This story was originally published September 18, 2026 at 5:37 PM.