“One of the most important things a franchise can do …

“One of the most important things a franchise can do is to make sure that your best, youngest, cornerstone players sign on the dotted line,” said HEAT President Pat Riley. “Getting Bam his extension was a no-brainer for us because we know he will be around for years to come. That’s great for the HEAT, great for the fans and great for Bam.”

More on Bam Adebayo Extension?

Bobby Marks: Bam Adebayo rookie max extension Contract vs. the max he could earn 21/22 $28.1 ➡️$33.7 22/23 $30.4 ➡️$36.4 23/24 $32.6 ➡️$39.1 24/25 $34.8 ➡️$41.8 25/26 $37.1 ➡️$44.5 Total $163 ➡️$195.6
Bobby Marks: The Bam Adebayo $28.1M salary in 2021/22 (and possibly more) replaces his $15.4M cap hold. The Heat are still going to have between $25-28M in room.
Anthony Chiang: The move to extend Bam Adebayo this offseason means the Heat will have to do some cap gymnastics to have max cap space next offseason. While more challenging, 2021 max cap space is still a possibility.
The Miami Heat are moving forward with a maximum rookie-scale extension for All-Star center, an NBA source confirmed to the Sun Sentinel, a five-year agreement that would kick in for the 2021-22 season and could run upwards of five years at almost $200 million.
The Heat, however, plan to move forward, at least at the moment, with intentions of maximizing 2021-22 salary cap space. Without an offer, or without accepting such an offer, Adebayo would become a restricted free agent in the 2021 offseason. The intrigue with Adebayo is that he shares the same agent as Antetokounmpo, who also is eligible for a max-tier extension over the next month.
ESPN’s Zach Lowe reported that Adebayo’s agent, Alex Saratsis, will meet with the Heat this week regarding where Miami stands on a possible max extension that would leave the Heat with less 2021 cap space. Adebayo is expected to speak to reporters Tuesday in the context of a charitable Thanksgiving event.
The Miami Heat previously showed interest in the Italian forward at the trade deadline. If Giannis Antetokounmpo signs an extension with Milwaukee, some around the league expect Miami to extend Bam Adebayo, try to bring back Goran Dragic, and upgrade at forward. That could open the door for Gallinari to land with Miami as a free agent on a multi-year deal.
Albert Nahmad: If Heat want to be assured to be able to keep core + retain a Giannis-sized max salary slot for 2021: 🔥 They can’t extend Bam, and 🔥 Any long-term salary they take on (in free agency or trade) needs to be for a player: (x) who's tradable, or (y) who fits into excess cap room
Rival teams are monitoring Adebayo’s extension situation and the aftereffects if Miami bypasses extending their superstar big man. Miami is preparing to go all in on the pursuit of Milwaukee’s two-time MVP Giannis Antetokounmpo in 2021 free agency, sources said. There is a school of thought that salary-wise, waiting on Adebayo’s extension would allow for as much space as possible for 2021. But given Adebayo’s presence, leadership and meaning to the Heat franchise, this is a straight-forward conversation between team executives and Adebayo’s agent, Alex Saratsis: A max extension this offseason or not.
NBA Central: Brian Windhorst says to keep an eye on Bam Adebayo and Giannis Antetokounmpo this off season "It’s interesting to point out that Bam and Giannis Antetokounmpo have the same agent. . . If neither of them sign extensions this off season, watch out for the Miami Heat." (🎥 ESPN) pic.twitter.com/hQXIytB8L2

All of this circles back to one of the most important decisions facing Miami: Bam Adebayo. He’ll be eligible for a max extension this offseason, and if he makes one of the top three 2020-21 All-NBA teams and/or wins Defensive Player of the Year, he’ll be eligible for a five-year deal that could pay him nearly $200 million. However, extending Adebayo now screws up the sugar-plum dreams of having cap space for a Giannis pursuit in 2021. One of the key pieces of that fantasy is that Adebayo’s restricted free-agent cap hold would only be $15 million; if he’s on the books for $35 million instead, that all goes right out the window.
However, a Miami team with Adebayo on a max contract, even the “low” max that pays just 25 percent of the cap, has no chance of having enough cap room for another max free agent. Not with Butler making $35 million in 2021-22 and $5.2 in dead money committed to the long-gone Ryan Anderson. Just with those three spots filled, it is not mathematically possible to have max cap space unless there is a massive leap in the cap number ahead of 2021 — which is the one thing that seems least likely to happen in the current financial environment.
Storyline: Bam Adebayo Extension?
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Knicks, Warriors and Lakers each projected to be worth more than $5 billion

The average NBA franchise is worth nearly $2.4 billion, according to data compiled by Sportico. That is down 2% as a direct result of the pandemic, based on our modeling. Collectively, the fair-market value of the NBA’s 30 teams, including ownership’s stakes in real estate, regional sports networks and additional team-related holdings, is more than $71 billion. Three franchises—the New York Knicks, Golden State Warriors and Los Angeles Lakers—are each worth more than $5 billion. (For context, each of those teams has a greater fair-market value than any National Football League team except for the Dallas Cowboys, based on Sportico‘s assessment of football team valuations last August.)
To be sure, the cumulative revenue for the NBA’s 30 teams, $8.3 billion, was down from the previous, non-COVID-impacted season by nearly 10%. However, a closer look reveals that national revenues (accrued predominantly from the league’s broadcast and sponsorship deals, as well as its licensing program) dipped only 2%. That, in large measure, is because of the NBA’s audacious plan to salvage the season with a playoff bubble at Orlando’s Walt Disney World. In a disrupted COVID environment, such single- and low double-digit declines represent remarkable stability.