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Pat Riley hints at Heat ducking luxury tax to avoid repeater tax penalties

Miami Heat
The Miami Heat will trigger the repeater tax penalties if they are a tax team in 2025-26, when they become more punitive. (Mandatory Credit: Sam Navarro-USA TODAY Sports)

Most of Pat Riley’s end-of-season press conference Friday was tailored toward the franchise’s future. He didn’t have any opening statement–atypical for the Heat’s president–instead jumping into the meat and potatoes of the tumultuous season that was the 2024-25 Miami Heat season, plus brushing the surface of what is to come.

One of the fine details that Riley, 80, discussed was the luxury tax. Miami tried to get out of the luxury tax at the 2024-25 trade deadline, but was unsuccessful, becoming a tax team for the second-straight season.

Riley mentioned that a goal is attempting to avoid repeater tax penalties, triggered by being a luxury tax team in at least three of the previous four seasons.

“Now, because of these different CBA machinations — that have to do with repeater tax, the first apron, the second apron and the penalties that come with it — there’s a different thought process,” Riley said. “It’s a little bit different about how you plan now. It could come through trades. It could come through the addition of one or two very good players. There’s always still going to be with us, improvement from within. But I don’t think we can go there.

“I think we have to make an adjustment … I think we can handle that. This is not a priority, but it is in order to manage the final part of the team and the roster. And there’s a couple of teams that simply are so far over that they will start feeling the punitive consequences of draft picks being frozen or dropped to third or whatever. But I think we’ll probably try to get out and then get back and reset it.”

Miami has been a luxury tax team in each of the last two seasons; it paid a $15.3 million fee after 2023-24 and a $4.3 million fee after this season.

The Heat were trying to get under the tax ahead of February’s trade deadline with Kyle Anderson’s $8.8 million contract. They had a deal completed to send him to Toronto … until it wasn’t, with the Raptors backing out before they acquired Pelicans star forward Brandon Ingram.

Miami has roughly $9.4 million in luxury tax space heading into 2025-26, according to Spotrac. Though that’s before potentially re-signing Davion Mitchell, who is entering restricted free agency this offseason.

The league’s luxury tax threshold for 2025-26 is expected to be roughly $187.9 million.

The repeater tax penalties for being in the luxury tax will be far more onerous beginning next season, especially for teams who are at least $10 million into the tax. If you’re not a contender, there’s no point in triggering the repeater tax with how punitive the penalties become.

Miami did not pay the tax after 2020-21, 2021-22 or 2022-23. It has not been deeper than $10 million into the tax since 2012-13, according to Spotrac.

Riley made it known that the Heat weren’t going to “RIB it,” (run it back) but not only does it take two to tango, we don’t know the line of delineation between what “running it back” means versus the inverse; we all probably have different definitions of it. Changes will be made, but how drastic?

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heat for life

watching the better teams play the heat are so far away from being a title contender .i have to say to myself eric reid is ez to listen to and rc is ez to post with to keep interest for the next 3 – 5 years.theres no short term fix for pats mess.

heat for life

tyler herro would get 0 minutos on okc ,

heat for life

tj mconnell hardly plays that would be the case with herro on indiana.if u cant luka defend u cant play on a good team.on the heat one wayers welcome come on down one wayers pat loves u guys

heat for life

30s fav playa ty jerome benched.bring on herro get his confidence going

heat for life

cooper flagg the next antman lol

heat for life

omg antman putting quitter to sleep.

heat for life

not sure why devicenzo and podjeski play they both suk every game

heat for life

why did kerr bench kuminga jeez hes one heckua player.

heat for life

do u think pat asked for kuminga and gsw said no

heat for life

jalen brunson is the best player in the east.

heat for life

we have one good all star type player.ty was in the asg but overall not all star type player we all know that even rc i think.not a dawg.keshad and ware are the only hopes on roster to be any good.cooper flagg would have helped but we need about 4 more cooper flaggs.

Reality Czech

If you make the asg, you’re an all star. He had a great season. As for Flagg, even in the unlikely event you don’t keep him, you’d have every team in the league knocking on your door and offering some of their best players to get him.

Hothothoopsfan4life

Lmao he couldn’t get past Sam Merrill or dean wade he’s a major liability on offense and he was a reserve btw lol Tyler can do no wrong in your eyes I see

heat for life

major liability on defense when tired offense to

Hothothoopsfan4life

Players I’d take over herro rn in the relative same age group

Jaden Ivey Aaron neismith Andrew nembhard herb Jonss Trey Murphy Quinton grimes, amen and Ausar Thompson Ben maturin

Reality Czech

I disagree on Neismith, Jones, Grimes, and Nembhard. Ivey, Thompson brothers, Mathurin all much higher draft picks. Trey Murphy is a maybe, I can see how you would feel that. Good size, had a good year. All may be better defensively, but you do need offense too and Herro is better than most career wise. I respect your opinion, I would be happy to see any one of them in a Heat uniform very.

heat for life

if tylers on ind does he play at all?

Reality Czech

Of course not. You’d rather play a guy with a 10 ppg average who is at 29.1% shooting 3s. Defense is important, but you need a player who can score and create his own shots as well.

heat for life

ask ty jerome

Reality Czech

Nope

heat for life

ty made his namesake look like an allstar for a week.enter nemhard neismith back to bench type player

Reality Czech

Doesn’t mean shit, bro

Reality Czech

From Herald..
In an alternate universe, the Miami Heat would have the No. 1 pick in the 2025 NBA Draft. But the reality is the Heat won two consecutive road play-in tournament games to become the first 10th-place team to make the NBA playoffs and lost the right to the 11th seed in the NBA draft lottery. Instead, the Dallas Mavericks became the No. 11 lottery seed after the Heat dropped out of the lottery by making the playoffs. Then the worst-case scenario happened for the Heat.
With almost all of the same four-digit numerical combinations assigned to the Mavericks as the No. 11 seed that would have been the Heat’s lottery tickets, the Mavericks overcame long odds to win Monday night’s lottery in Chicago and get the No. 1 overall pick in the June 25 NBA Draft that will almost certainly end up with the selection of 18-year-old phenom Cooper Flagg.

Yup, but everyone is wrong and one person here is right? Let’s just say unlikely.

heat for life

lets see cooper going against nba players rc

Reality Czech

Guess what? We will. And it won’t be in a Heat uniform very very unfortunately.

Reality Czech

At this point, I actually hope the Heat trade the #20 for the Nets 26 and 27. Names in that range on the new SB Nation mock include Fleming, Traore, Wolf, Saraf. I would welcome any 2 of those 4.

Reality Czech

SI-
The Miami Heat got a stiff slap in the face in the NBA Lottery when the Dallas Mavericks, seeded 11th in the slot the team vacated by winning the play-in tournament and reaching the playoffs, ended up with the rights to the No. 1 overall pick.

The Heat can always cling to the reality that nothing was guaranteed to them at the No. 11 spot in the lottery, but the organization and their fans can now monitor Flagg’s career going forward and wonder what might have been.

Last edited 19 days ago by Reality Czech
Reality Czech

Flagg carried Duke to the Final Four and became just the fourth freshman to win the Wooden Award since 1977 recognizing the nation’s most outstanding player. Flagg’s dominant production against older competition despite not turning 18 years old until the end of the Dec. is the best indicator for his future stardom, and he also has so many great tools to work with. Flagg has an elite combination of positional size (6’9 with a 7-foot wingspan), athletic explosiveness, motor, and feel for the game. He’s a true two-way forward who can impact the game without the ball, but he also flashed some incredible upside on the ball as the engine of Duke’s offense. His three-point shot was automatic (44.7 percent) after he turned 18, and his passing reads were damn impressive for a player this big and this young. This is a shocking result after the Mavs traded Luka Doncic midway through this season. Dallas has a new franchise star, and he can take them to same heights Luka reached — maybe even higher.

Last edited 19 days ago by Reality Czech
Hothothoopsfan4life

Mia needed that lottery pick and idiots here cried about experience now wants them to tank a whole year rather than a few games this year it’s sad really

Big_guy305

Screw them mavs I hate that they get that pick .

heat for life

duke had 5 star players around him.we shall see.hes from duncans part of the world

Reality Czech

Who cares? Fine, you don’t want to sign the #1 prospect, they could just take the #2 prospect… stop trying to spin it. Major mistake.
Dylan Harper. The younger son of Ron Harper, Dylan is an elite level shooting guard prospect and one of the best players in the 2025 draft class.
The 6-5 lefty is a bucket-getter who can score inside and out. He has range on his jumper and is becoming a knock-down shooter and is a cold-blooded shot-maker.
He’s a sturdy and strong guard who can overpower defenders at the high school level/college. His strength helps him absorb contact and finish in the paint, where he’s got a nice touch around the rim. He’s not a true high flyer and plays more of a skill and power based game rather than relying on pure athleticism.
Harper can play on or off the ball. He’s a high level passer with good court vision and good decision making; you can tell he’s the son of a NBA player.

heat for life

the no 20 pick might be better than flagg .tom brady was drafted in 6th round.ayton fullz simmons #1 picks

Reality Czech

Hey, it once snowed in Florida. Anything can happen. But the odds of the #1 pick being better than the #20 are overwhelming.

heat for life

whos the last great whitesider forward larry bird mchale

Reality Czech

Has zero to do with current situation. Teams wish they had gotten the #1 pick in order to take him. Not because he’s white, because he’s good. Every analyst and every team is wrong though, I guess, in your opinion.

heat for life

will see when hes banging against nba players.hes the jerry cooney of the nba

Reality Czech

You really have no clue about that. You’ll be the loudest complainer when you see him play knowing he could have been a game changer here. Every single team wanted him, every one. Everyone in the NBA is wrong and you’re right? Because you watched him for x number of minutes? Lol. He’s going to be good. Take it to the bank.

Reality Czech

The following were all #1 picks:

LeBron James, Kareem Abdul-Jabbar, Magic Johnson, Tim Duncan, and Shaquille O’Neal. Other frequently mentioned players include Hakeem Olajuwon, David Robinson, and Allen Iverson. 

So, while there are always exceptions, some of the greatest players to ever play were #1 picks. And that’s just looking at #1 picks. If you look at top 5 picks through the years, you will probably find 90% of the all time best players. That’s a fact.

heat for life

1 % chance to get #1 pick.nico harrison death threats sounds fishy this lottery

Hothothoopsfan4life

Doesn’t matter had spo/pat done what was in the best interest of the team and future which was the lottery this team man is annoying and haven’t done nothing right in years

Hothothoopsfan4life

To me this has nothing to do with getting number 1 overall but more about getting in the lottery period because Mia needs talent over some dumb ass “experience” argument dumman wanted the “young guys to get” but now wants Mia to punt/tank the whole next season but cries and complain about the “giving up” 2-3 games

Last edited 19 days ago by Hothothoopsfan4life
heat for life

whos dumman

Big_guy305

It’s either we tank or Riley makes a big move no in-between. This season was a disaster and losing that chance at the 1st pick gives this whole organization a huge L on their head or an F grade.

heat for life

no tank

heat for life

cooper flagg is not a wemby or ant man i saY hes more likk gordon hayward

Big_guy305

He probably ain’t generational, but he dam near is close to it, and he will be better then Hayward, that’s a bad comp. When is the last time a white player went number 1 ? That gotta mean he is legit .

heat for life

u never know big i dont see it.playing vs nba players different than players from the u.andrew bogut aussie whitesider2004

Big_guy305

We shall see…

Reality Czech

Yup, let’s judge him on talent, not race. As you say, we’ll see.

Reality Czech

I don’t buy that. Hayward was the 9th pick.

InsuranceMan

Go to hell man what the ****

Reality Czech

We lost the #1 pick in the draft! Yeah, picks don’t matter!! This sucks!

heat for life

how

Big_guy305

Sucks is an understatement I’m freaking devastated 💔

heat for life

lift some weights

Big_guy305

I did yesterday, not In the mood today

heat for life

watching nyk bost?

Big_guy305

Yes sir

Big_guy305

Tatum tore acl, I think Celtics will make changes next season.

heat for life

w/o tatum theyre now the miami heat

Reality Czech

WE Could have had the number one pick in the draft!!! Anybody going to say the draft picks don’t matter now? Team royally screwed up!!!

Big_guy305

Spo fucked us smh 🤦 worst season coaching but couldn’t even get that 11th pick, cuz he didn’t want to tank 😒. This is will definitely hurt for awhile knowing we could of got the Cooper Flagg, this was the perfect year to tank. This pisses me off, a lot of regret to around that organization smdh.

Reality Czech

What a fkn disaster. Top 4 pick could have changed the direction of the team for the next 10 years!

Reality Czech

SHIT!!! Our pick went top 4!! Heat screwed up! Really sucks!

heat for life

not all ind picks are high they just went with 2 wayers plus tjs gotta little dawg in him.bad drafting rc.how bout going after siakam instead of turtle patrick.ob toppin in a heat uni?.bad pat u just suk now retire.i admired u for a long time suns not shining on u anymore.my sun would have been better than u.

Reality Czech

First you say kiss your ss azz and give him whatever he wants. So Riley does exactly that by signing Lowry to a bad contract. Now you’re blaming Riley for that.

heatforlife

u tell quitter i love u jim but turtle is washed.yes u do kiss ss ass ask the great jimmy johnson.duncans of the world they ask for something u tell them where the nearest train station is thats how successful franchises work for the most part.in hhh u tell hfl what to post or not post or else .u dont dare tell sun what to post .sun is hhh .jimmy was the miami heat.dunc is the hfl of hhh

Reality Czech

Right, but you didn’t qualify your statement. You said give him WHATEVER he wanted, and he wanted to play with his good friend.

heat for life

man this tax sht too complicated alls i know after seeing okc dawgs and ind dawgs our non dawg team blows.totally pats fault get him out of here.suns not shining on us anymore.san diego has better sun there.pat needs to go this team is behind the time

Reality Czech

Sorry, if you haven’t already noticed, Riley has no intention of going. From 2021-23, Pacers had 11 draft picks. That helps the team to add those players to the roster or utilize them in trades. OKC between now and 2031 have 32 draft picks, 15 firsts and 17 seconds!! They will be a powerhouse for years to come. It is how they’ve built this team. It is why I strongly disagreed when you said you don’t care about draft picks. Of course, you also get them by losing a lot.

heat for life

pats drafing like its the 1960s

Hothothoopsfan4life

Agreed herro Jaime’s pelles and the Duncan Robinson of the world prove this, Indy making the cavs quit and Mia couldn’t even win a damn game. Herro also couldn’t get past players like dean wade and Sam Merrill but the athletes on Indy don’t even bother with them bums

heat for life

ty jerome has gone from an all star vs heat to a scrub vs ind.but others dont see that herro is pretty much an average player overall.theres a reason why donovan and dame are not heaters

Big_guy305

Herro was a good pick for the end of the lottery but he ain’t 1 or 2 option currently. I wanted Whitmore over Jaquez, but both haven’t proven anything yet. I honestly think keshad will be better then pelle, he’s athletic, has good 2 way potential if can get some minutes. Indy has been really good this year and last, But they built through the draft, and had good assets to trade for hali, and spicy p. That’s why I wanted us to not make playoffs to get more draft assets, but that didn’t happen 😒

Last edited 19 days ago by Big_guy305
heat for life

heat prefers whitesiders seems like.not a good way to operate biz

Big_guy305

Only cuz this team doesn’t purposely tank. I don’t mind rebuilding, but pat Riley doesn’t like that approach, so we shall see.

Reality Czech

Today is an interesting day with potential to p*ss off me and other Heat fans. It is the draft lottery. If, by any chance, Dallas lucks out and moves up into one of the top 4 picks, it would be like adding salt in an open wound. They currently have what could’ve been our #11 pick, which is bad enough. I hope they don’t move up. Also, fyi, the pick OKC gets from us is #15 (as if they need it. They also have #24&44)

Hothothoopsfan4life

Agreed with your whole comment making the playoffs was a total waste of time that did nothing but hinder an already talentless team in hopes of experience lmfao. And how bout okc the hoarders of picks and talent

heat for life

bam is a talented player any team would want.ware might be.rest no.maybe keshad.rest no

heat for life

dallas got cooper flagg

Big_guy305

This team is too prideful can’t get out of its own way. Dallas doesn’t deserve that pick, trading away generational players, now they can luck into another potential generational player is ridiculous smdh.

SunManFromDogBone

If the Heat runs it back with the following starting group and rotation players from day 1, what kind of record do you think they would have at the end of the season?
(Note: I have included player’s current ages.)

STARTERS:
Mitchell (26), Herro (25), Wiggins (30), Bam (27) and Ware (21)

ROTATION PLAYERS
Smith (27), Larsson (24), Jaquez (24), Johnson (23) and Jovic (21)
Include 2025 draft pick in rotation, if/when he is ready

PERSONNEL CONTRACT DECISIONS

Sign Mitchell for 4 years $10M-$12M per yearConsider re-signing Burks (33) to a minimum contract, if it makes senseBuy Robinson (31) out for $9,888,000 and save $10,000,000 -or- exercise team option and sign him for $19,888,000 and trade him for the best possible player or as part of a trade package for a higher salaried player. (A player with a team option can be traded before the team exercises or declines the option, as long as the trade happens before the end of the season and before June 30). Buy Love (36) out for 1/2 of his $4,150,000 salary ($2,075,000) and offer him a coaching/consultant position.Attempt to trade players with expiring contracts (Highsmith (28), Anderson (31) and Rozier (31) for younger players and/or draft picks and/or cash. Worse case scenario, play them sporadically or in cases of injuries, until they can be traded, bought out or their contracts expire, whichever comes first. Note:
Although there may be a market for Robinson, Highsmith and Anderson, it is unlikely that a team would want Rozier, unless it is strictly for salary cap purposes. Expiring contracts, especially large ones, free up significant salary cap space when they end, allowing teams to spend more money on future players. This can be crucial for teams looking to upgrade their roster or sign high-profile free agents. That is why all three contracts, plus Robinson’s are so valuable to Miami. They total over $61M and can be off the books after 2025-2026, one way or another.

Meanwhile, if “killer deals” (offers we can’t refuse) involving starters or rotation players come up at any time before the February trade deadline, they can be evaluated on an individual basis. Who knows, maybe a gift will drop out of the sky (although I wouldn’t bank on it).

Last edited 20 days ago by SunManFromDogBone
Reality Czech

As noted, the repeater tax can be egregious. It can limit who you can sign, for how much, make trades harder to complete, and even affect your draft picks. I know people don’t like to hear that, but it’s not like other sports where you can spend any amount you’re able to.

SunManFromDogBone

Exactly why Heat needs to use this summer, 2025-2026 season and next summer to draft 2 players, get rid of players on expiring contracts, evaluate young players and develop a strategic plan for the future.

Reality Czech

I don’t disagree. But I still don’t think that will happen. I would rather you and others be right on this one however.

SunManFromDogBone

“The repeater tax penalties for being in the luxury tax will be far more onerous beginning next season, especially for teams who are at least $10 million into the tax. If you’re not a contender, there’s no point in triggering the repeater tax with how punitive the penalties become.”

I hope Riley doesn’t act impulsively and try to fix the problem all at once by trading away the future the way Phoenix did.

Reality Czech

I think they’ll find a way out of the tax to avoid getting hit with the repeater.

SunManFromDogBone

I think the way of avoiding the repeater penalty is by shedding salaries without acquiring new players that will raise the team’s overall payroll. Here’s an interesting article about Riley’s admission of tanking in the past (although never admitting it at the time).

“…He referred back to his final coaching season with the Heat where the team went 15-67, before he handed the reins over to Erik Spoelstra.”

“Not really successful in the way here, but I was successful in 2008, but I never told anybody I was gonna try to tank. I always said we’re gonna win, but we’re tanking, not really, but we were.”

This underlines how Riley will communicate his plans for the season. He will say he wants to win, and he most likely really will want to do so.

But in the event he does make the rare move to try and tank – he will keep it secret until it is so obvious it stares everybody in the face.”

https://www.yardbarker.com/nba/articles/i_never_told_anybody_the_rare_move_pat_riley_could_make_for_the_miami_heat_that_he_would_keep_completely_secret/s1_17149_42180993

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