Heat Aim To Extend Danilo Gallinari As Part Of Trade

Having already agreed to a contract extension with Andre Iguodala as part of the trade that will send him from the Grizzlies to the Heat, Miami is looking to do the same with Danilo Gallinari, who is expected to be acquired from the Thunder in a three-team trade, reports ESPN’s Adrian Wojnarowski (via Twitter). According to Wojnarowski, the Heat and Gallinari’s reps were working overnight on a possible extension.

As we detailed late on Wednesday night, the exact terms of the trade that will send Iguodala and Gallinari to Miami remain unclear. We know the Grizzlies are acquiring Justise Winslow, but no other pieces have been confirmed. The belief is that Jae Crowder and Solomon Hill would be involved, likely heading to Oklahoma City. James Johnson and Dion Waiters are among the other rumored outgoing pieces for Miami and would presumably both end up in Memphis. Draft compensation would also be involved.

Assuming the three teams reach a trade agreement, Gallinari would be eligible to sign a new contract with the Heat that extends his current deal by two additional years, with 5% annual raises. Typically, veteran extension rules are less restrictive, but extend-and-trade rules limit new deals to three total years (including the current season) and modest raises.

Based on his current $22.62MM salary, Gallinari could receive as much as $23.75MM for 2020/21 and $24.88MM in 2021/22. However, as Woj notes, the Heat’s desire to preserve cap room for the 2021 offseason may complicate matters. Miami’s extension with Iguodala features a non-guaranteed team option for that ’21/22 season, allowing the team to maintain flexibility. It’s not clear if Gallinari would be on board with a similar arrangement.

As cap expert Albert Nahmad details (via Twitter), the Heat currently project to have more than $50MM+ in cap room for 2021, assuming Iguodala’s option is turned down. A pricey guaranteed salary for Gallinari would compromise the club’s ability to create a maximum-salary slot unless contracts are stretched.

It will be interesting to see how creative Miami gets — Nahmad points out (via Twitter) that using a descending salary structure or making that 2021/22 partially guaranteed could help the team stay somewhat flexible.

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10 thoughts on “Heat Aim To Extend Danilo Gallinari As Part Of Trade

  1. Otogar

    Surely they will be getting some pick(s). But if Miami manages to get (and extend) Iggy and Gallo and get rid of Waiters in the same trade it will be an A+++ move, even if they have to include a couple of picks.

  2. Skip, Tampa

    Winslow solves any picks to Grizzlies and the 2023 1st unprotected has huge value to the Thunder. Plus probably Hill as expiring and possibly Crowder who they can extend.
    Also 3 teams after James Johnson, so another pick to someone, a 2nd likely.
    Waiters is also better than any backup SG on the Thunder or Grizzlies right now.
    Bonus for Riley is he gets to free up the 2025 1st.

  3. Jason Lancaster

    This is a bold move, but it’s also very risky. Riley may look like a genius if Miami makes it to the finals, but if not? It’s like a cheesy Hollywood movie about a bunch of old guys flying a spaceship.

  4. So both Iguodala and Gallo would be extend-and-trade deals? These are rare, as I understand it, and there hasn’t been one since Carmelo in 2011. Now there are two in a day.

  5. Lots of moving parts, but the goal is simple. Put the best possible team in place for this year and next, and then reload in FA in the summer of 2021 around Butler, BA (extended) and a group of young rookie contract guys.

    Riley isn’t a young man, and perhaps his time line and the guys he wants to go with from the summer of 2021 onward aren’t what some fans would like. I get that. But I don’t see any huge organizational risk being assumed by these deals. At least not based on the names and other assets discussed.

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