The two-time All-Star will become the newest starting small forward after the loss of free agent LeBron James.
For the same price tag that the Chicago Bulls were offering at $10 million yearly, Riley has landed a versatile, team player who was the Bull's leading scorer after Derrick Rose's injury and was an All-Star in 2012 and 2013.
Yahoo! Sports writer Adrian Wojnarowski first reported the deal, which includes a player option for the 2015-16 season.
Deng chose the Heat believing their returning nucleus and free-agent signings can keep them contending in the Eastern Conference. The absence of state income tax made the Heat's offer sound financially for him, too.
Heat president Pat Riley and Deng's agent Ron Shade talked on Saturday and completed the deal on Sunday morning.
The starting small forwards for the Heat and the Cleveland Cavaliers have now switched teams in free agency. Deng has career averages of 16 points, 2.5 assists and 6.3 rebounds over 10 seasons and is the fourth-leading scorer in Bulls franchise history. Deng increased his averages at the start of last season to 19 points and 6.9 rebounds in 23 games with the Chicago Bulls before being traded to the Cavs.
Heat's strategy is clear: They're trying to get as many guys (including their own) to take 2 year deals as they can, clear room for 2016.— Ethan J. Skolnick (@EthanJSkolnick) July 13, 2014