Goran Dragic has reached agreement on a five-year, $90 million contract with the Miami Heat, league sources told Yahoo Sports.
Dragic’s deal will include a player option after the fourth year, league sources said.
It was expected from the moment the Heat traded for Goran Dragic at the deadline that they would be willing to fully commit to re-signing him, and a five-year deal worth $90 million is market value for someone with his skill set.
It’s also worth reminding that deals signed this summer will seem like bargains when the cap spikes in advance of the 2016-17 season.
Things now get interesting in Miami, where Dwyane Wade declined his player option and is threatening to leave in free agency if the Heat don’t meet his contract demands.
I joined Steve Kyler to preview free agency on the Basketball Insiders podcast, and we broke down the Wade situation in great detail. It comes down to this: The team can go over the cap to re-sign him, and whatever money they choose to allocate toward Wade won’t affect their ability to go out and get additional talent to add to the roster. It becomes a luxury (and repeater) tax issue, where Wade’s actual cost would increase substantially once penalties are taken into account.
I still think Wade stays in Miami, but that tax situation is real. The penalties don’t hit until the end of next season, however, so the Heat would theoretically have until the mid-February trade deadline to dump contracts to get under the tax line if they re-sign Wade to a big-money deal, and the team’s performance doesn’t meet expectations.