The Miami Heat officially announced the Bam Adebayo extension yesterday. And we have now learned some key details regarding the contract.
Apologies if somebody mentioned this already, but:— John Hollinger (@johnhollinger) November 29, 2020
Hearing that Bam Adebayo's deal only pays him the full Supermax (30% of cap) if he wins MVP. Apparently it's 28.5% if he makes 1st-team All-NBA, 27.5% if he wins DPOY, and 25% otherwise.
Adebayo’s five-year, $163 million extension will kick in for the 2021-22 season. As it stands, it is currently slated to pay Adebayo 25 percent of the NBA salary cap.
He can now only reach the full supermax of 30 percent of the cap — which would increase the contract to $195 million — if he wins MVP for the 2020-21 season. If he makes First-Team All-NBA, Adebayo’s contract would increase to 28.5 percent of the cap, or $186 million. And if he wins Defensive Player of the Year, it would increase to 27.5 percent of the cap, or $179 million.
Bam’s potential payouts (at the current $112.4M salary cap projection for 2021-22):— Albert Nahmad (@AlbertNahmad) November 29, 2020
◾️ Min Payout (25%): $28.1M ($163.0M total)
◾️ DPOY (27.5%): $30.9M ($179.3M total)
◾️ 1st Team All-NBA (28.5%): $32.0M ($185.8M total)
◾️ MVP (30%): $33.7M ($195.6M total)
These details have enormous implications for the Heat’s flexibility during the 2021 off-season. Luka Doncic is already the favorite to win the 2020-21 MVP. Adebayo won’t even enter the conversation unless Jimmy Butler sustains a serious injury and the Heat remain competitive. Adebayo received 26 All-NBA Third-Team votes last year, but failed to make the cut. It’s difficult to envision him making All-NBA First-Team next year, competing against Anthony Davis, Nikola Jokic and Joel Embiid.
Defensive Player of the Year would be the accolade Adebayo has the best chance of winning next year, but he’d still compete against Giannis Antetokounmpo and Davis. He finished fifth in the award last year and made the All-NBA Defensive Second Team.
If Adebayo fails to win any of those awards, the Heat could have up to $30 million in cap space next summer. Of course, Miami would need to decline the 2021-22 team options for Goran Dragic, Andre Iguodala, Meyers Leonard and Avery Bradley.
If the Heat ultimately elect to go the cap room route next summer, and get super-aggressive with it (retaining only Butler, Bam, Herro and Robinson), they could probably get to as much as $24M - $30M of cap room (range based on Bam hitting 5th Year 30% Max targets). #flexibility— Albert Nahmad (@AlbertNahmad) November 24, 2020
And though it falls short of the cap space needed to sign Anteotokounmpo, the two-time MVP could sign a one-year contract with a player option for a second year with the Miami Heat. Such a move would allow the Heat to sign him without executing a sign-and-trade that could involve giving up Tyler Herro and Duncan Robinson.
Just throwing this out there: A max-type player (e.g., Giannis) could hypothetically take a discount in signing a 1+1 with a new team as a free agent, and, as long as that discount is within 20% of his projected max for the following season, max out thereafter.— Albert Nahmad (@AlbertNahmad) November 24, 2020