Dwyane Wade's contract dispute could be simple question of luxury tax
According to the minimal leaks that have come out regarding the impasse in contract talks between the Miami Heat and Dwyane Wade, the Heat want Wade to opt in so that the team can maintain as much financial flexibility as possible moving forward. That may very well be true; every dollar matters, despite the fact that the cap is set to explode over the next couple of seasons.
But the Sun-Sentinel's Dave Hyde joined CBS Miami's "Kup and Crowder Show" this week to voice a different perspective: If the Heat really want to keep Wade happy, it's a matter of Heat owner Micky Arison's willingness to pay the luxury tax next season.
"They can give Dwyane Wade — and I did this with my capologist Ira Winderman so it isn’t just me pretending I know the salary cap — $23.5 million this year, the maximum," Hyde said. "They’re gonna be over the cap. So it isn’t a question of forfeiting the ability to win next year, the only question then is does Micky Arison want to pay the luxury tax? And it will be a steep luxury tax as of now."
With all of the Heat free agents and cap holds for players such as Goran Dragic and other complicated cap tomfoolery, it's hard to say just what the repercussions of going that far into the tax would be for Miami this season and next. They'd be able to bring Dragic back, as they can go over the cap to re-sign their own free agents. But Hassan Whiteside's free agency next season could become more difficult, especially if he plays himself into an even bigger raise this season. And if Miami plans on making a run at a big-name free agent like Kevin Durant, having Wade on the books at a significant salary would make things more difficult than having him as a free agent next summer after opting into his current deal.
With all that said, the Heat absolutely could give Wade the money he reportedly wants, if they so desired. It's all about priorities and planning for the future. And that's something we can all relate to, even if the scale is a little bit bigger.
(h/t CBS Miami)
Photo Credit: Steve Mitchell/USA Today Sports
