Pelle Larsson 4-Year Extension Analysis

Miami Heat lock up Swedish wing Pelle Larsson to a 4-year, $60,000,000 contract extension.

Extension Agreed

Total Contract Value

$60,000,000

Fully committed extension

Duration

4 Years

Starts in upcoming cycle

Average Annual Value (AAV)

$15,000,000

Approx. 9.8% of salary cap

Heat Cap Health

Under 1st Apron

Mid-level exception flexibility

Contract Structure Model

Salary Escalation

Annual NBA Cap Growth 10.0%

5% conservative 10% max TV cap-spike

Incentives / Likely Bonuses $0M

Adds performance-based upside triggers across the 4 seasons.

Miami Heat Luxury Tax Baseline $182.4M

Simulated active roster payroll with Larsson's extension applied.

Salary Trajectory vs. Projected NBA Salary Cap

Pelle Larsson's cap burden relative to expanding league revenue thresholds

Larsson Cap Hit

Cap Share % (Right)

Season	Base Salary	Incentives	Total Cap Hit	Projected Cap	Cap Share

Calculated based on Year 1 of extension impact

Projected Active Cap Spending: $184.2M

Salary Cap ($154.6M) Luxury Tax ($188.0M) 1st Apron ($196.0M) 2nd Apron ($208.5M)

Recent 3-and-D rotation wing extensions against league cap environment

Pelle Larsson (Heat) $15.0M AAV

4 Years, $60.0M • 9.8% Initial Cap Share

Corey Kispert (Wizards) $13.5M AAV

4 Years, $54.0M • 9.6% Cap Share at signing

Josh Green (Hornets) $13.7M AAV

3 Years, $41.0M • 10.1% Cap Share at signing

Aaron Nesmith (Pacers) $11.0M AAV

3 Years, $33.0M • 8.1% Cap Share at signing