For the Heat, having significant 2025 cap space — the potential offshoot of a Jimmy Butler departure — isn’t a bad thing.

But it’s not the most important thing.

The Heat is eyeing max flexibility during the summer of 2026, when a parade of All-Stars could become free agents. But that doesn’t mean the Heat is opposed to having a lot of flexibility this summer, which would be achieved if Butler is traded only for expiring contracts or leaves for nothing.

If Miami gains that type of flexibility this summer, the question is whether there’s any realistic target in the 2025 free agent class who’s worth a significant investment, especially considering the potential 2026 class is considered vastly superior. That seems unlikely.

Though Butler leaving the Heat in free agency (without the Heat’s help) would not leave Miami with cap space to sign a max player this summer or anything close to a max player directly into cap space, there are ways around that — avenues that could give the Heat more than $60 million in spending money in July.

Here’s how: If the Heat facilitates a July sign-and-trade for Butler and wants an enormous trade exception instead of players in return, it can take no money back from the team acquiring him. That, however, would necessitate the inclusion of teams with cap space to absorb salaries of players being sent away from a team acquiring Butler.

If that falls into place, Miami would have a trade exception equal to Butler’s first-year salary in a new contract next season — which would be enough to land most of the top free agents from a weak class this summer if those players’ teams wish to cooperate and if the Heat has mutual interest with any of those players. The trade exception, appropriately, can also be used on trades for players who are under contract, with Miami not obligated to send significant money back in return.

That trade exception also would come into play if Butler surprisingly exercises his $52.8 million player option for next season and Miami trades him to a team without taking any money back. (Third and fourth teams would be required in this scenario, as well.)

Here’s the other option: If Miami decides not to participate in a Butler sign-and-trade and simply allows him to leave, the Heat could clear out $13 million in cap space — a figure that would balloon to $23 million if Duncan Robinson is released, and a figure that could top $30 million if Miami finds a team with cap space that’s willing to take Terry Rozier’s expiring contract and send Miami less money back.

Also, the Heat could take back more money than it sends out in a trade this summer because it would be below the first apron; the Heat cannot do that now.

By trading Butler this summer, Miami could then try, if it wishes, to become involved in a sign-and-trade for Dallas’ Kyrie Irving (who has a $43.9 million player option for next season), Minnesota’s Julius Randle (expected to opt of $30.9 million for next season) or Indiana’s Myles Turner (unlikely) and New Orleans’ Brandon Ingram, two impending unrestricted free agents.

Of those four, Ingram is considered the most likely to change teams, but his injury history is cause for concern. Irving has given no indication that he wants to leave Dallas, and the Timberwolves gave up Karl Anthony-Towns with the intention of keeping Randle.

The Lakers’ LeBron James has a $52.6 million player option and the Clippers’ James Harden has a $36.6 million player option, but either coming to Miami would seem unlikely. Utah’s John Collins can opt out of $26.6 million, but his production has regressed.

Keep in mind that the trade exception could be used for a full year, seeping into July 2026 free agency.

If the Heat operates as a team over the cap (but under the tax) this summer, Miami would have a $14 million exception to use on a free agent class including Toronto guard Bruce Brown, Chicago oft-injured guard Lonzo Ball, Brooklyn guard D’Angelo Russell, Milwaukee Bucks players Brook Lopez, Bobby Portis and Khris Middleton; Atlanta center Clint Capela; Brooklyn’s Bojan Bogdanovic, Boston center Al Horford; Minnesota wing Nickiel Alexander-Walker, Cavaliers guard Caris LeVert; Detroit guard Tim Hardaway Jr.; new Lakers wing player Dorian Finney-Smith (if he opts out of $15.3 million), Milwaukee’s Gary Trent Jr., Philadelphia’s Kelly Oubre (if he opts out of $8.3 million) Minnesota center Naz Reid; Clippers guard Terance Mann and center Ivica Zubac.

Miami likely is not going to reduce its 2026-27 cap space for a player that is not viewed as a difference-maker.

Other players set for free agency in July — some of whom will need to settle for minimum deals — include Washington guard Malcolm Brogdon; Toronto forward Chris Boucher; Memphis guard Luke Kennard; Golden State guards Gary Payton Jr. and Denis Schroder; San Antonio guard Chris Paul; Phoenix guards Tyus Jones and Monte Morris; Clippers guard Kevin Porter Jr.; Chicago guard Jevon Carter; Detroit guard Malik Beasley; Denver guard Russell Westbrook and Nets wing Ben Simmons.

The Heat also could opt against acquiring a trade exception for Butler and instead take back several players from a team acquiring Butler, either before Feb. 6 or as part of a sign-and-trade this summer. Miami is open to taking back players with more than only this season left on their contracts, but would be very selective about doing that and likely would need to be given an additional carrot to do so.

If Miami takes no part in a Butler transaction and simply uses cap space, it would not have access to a $14 million midlevel exception and a $5.1 million biannual exception to spend this summer. (Teams using cap space do not get that full $14 million exception.)

If Miami is involved in a Butler trade before Feb. 6 or in July, it would have access to both of those exceptions.

This story was originally published January 10, 2025 at 10:15 AM.