Announcement of a 2-for-1 trade! The Heat send Haywood Highsmith and a 2032 second-round pick to the Nets in exchange for a 2026 second-round pick from the Nets.

On August 16, Beijing time, the Nets and the Heat officially announced that the two teams have reached a 2-for-1 trade deal. The Heat are sending Haywood Highsmith and an unprotected 2032 second-round pick to the Nets in exchange for the Nets' protected 2026 second-round pick (protected for the top 55 selections).

For the Heat, this trade has financial considerations; it enables them to fall below the luxury tax threshold. On the day of the trade, the Heat were approximately $1.6 million over the luxury tax line, with 14 players under contract.

After sending Highsmith's expiring $5.6 million contract to the Nets, the Heat will gain nearly $4 million in maneuvering space below the luxury tax line. Before the season starts, they will need to fill at least one standard roster spot—however, the team may choose not to fill the 15th roster spot at the beginning of the season to avoid exceeding the luxury tax line again.

There has been speculation that the Heat are likely to avoid the luxury tax this season, thereby resetting their "repeat luxury tax payer" clock.

The 28-year-old Highsmith played 74 games (42 starts) for the Heat last season, averaging 6.5 points and 3.4 rebounds in 24.6 minutes per game, with a shooting percentage of 45.8%, a three-point percentage of 38.2%, and a free throw percentage of 72.1%.

However, a week ago, it was reported that Highsmith suffered a meniscus tear during an offseason workout and underwent surgery, with an expected recovery time of at least 8 to 10 weeks. This not only affects his ability to participate in the early games of the season but also diminishes his value as a trade asset, which is why the Heat had to include an additional second-round pick to facilitate the trade.

The Heat will create a trade exception valued at the equivalent of Highsmith's salary ($5,616,000), which will be valid for one year.

As for the Nets, they continue to utilize their salary cap space to accumulate draft assets. Earlier this summer, they acquired two first-round picks in a separate trade involving Michael Porter Jr. and Terance Mann. It remains unclear whether Highsmith will be part of the Nets' plans for the 2025-26 season, as the Nets may face roster space constraints, but adding his contract will have minimal impact on their remaining salary cap space.

As ESPN salary expert Marks stated, after accounting for Cameron Thomas's $12.1 million salary placeholder, the Nets still have $22 million in salary cap space, although this figure does not yet include the reported two-year, $12 million contracts with Day'Ron Sharpe or Ziaire Williams (these contracts have not yet officially taken effect). One of these signings may be completed using the mid-level exception, but at least one will have to utilize the Nets' salary cap space.