Heat retain Goran Dragic (for now, as Lowry looms); Andre Iguodala allowed to become free agent

The Miami Heat on Sunday picked up their $19.4 million 2021-22 team option on the final year of the two-year contract of guard Goran Dragic, but bypassed a similar move with forward Andre Iguodala, making him a free agent.

With the move with Dragic, it means the Heat will operate as a team above the 2021-22 salary cap at Monday’s 6 p.m. start of NBA free agency.

The decision by the Heat with Dragic makes it easier for the team to retain their other impending free agents, such as Victor Oladipo, Trevor Ariza and Dewayne Dedmon.

But the decision by no means guarantees that Dragic will be with the Heat this coming season. Instead, it became increasingly apparent Sunday that Dragic was retained in order for his salary to be utilized in a trade with the Toronto Raptors for free-agent guard Kyle Lowry, a deal that also could involve Heat center Precious Achiuwa.

Should Dragic ultimately be dealt to the Raptors, he likely would receive a buyout from Toronto and be able to sign with the team of his choice (but not allowed, under league rule, to return to the Heat).

Under such a scenario, because the Heat would be taking in a player in a sign-and-trade transaction, the Heat would be hard-capped at a payroll limit of $143 million for 2021-22.

By choosing the operate above the salary cap, it leaves the Heat with a $9.5 million mid-level exception to add a free agent and a $3.6 million biannual exception.

As for Iguodala, the Heat retain the right to re-sign him by retaining his Bird Rights, still able to utilize him in a sign-and-trade transaction as salary-cap ballast.

Bypassed by the Heat with Iguodala was the $15 million team option for the 2021-22 season the team added when it acquired the veteran defender at the 2020 NBA trading deadline from the Memphis Grizzlies. ESPN reported the bypassing of Iguodala’s team option.

Sunday’s moves do not directly impact the restricted free agency of the Heat’s Duncan Robinson or Kendrick Nunn, but now make it easier to retain both, no longer operating with concern regarding exceeding the salary cap.

Both Dragic and Iguodala played largely in supporting roles this past season, with Dragic, at 35, and Iguodala, at 37, each showing signs of their age.

Iguodala potentially could retire or possibly return for an encore run with the Golden State Warriors, with whom he won NBA titles in 2015, ‘17 and 18.

Both Dragic and Iguodala played significant roles for the Heat’s run to within two victories of the 2020 NBA championship, with Dragic at the time playing as a starter and Iguodala as a lead reserve.

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Dragic was acquired by the Heat at the 2015 NBA trading deadline from the Phoenix Suns for two first-round picks, including the No. 18 selection exercised last week by the Oklahoma City Thunder. Dragic since had re-signed twice with the Heat since joining the team, including last November.

Iguodala was acquired in February 2020 along with Jae Crowder and Solomon Hill from the Grizzlies in exchange for Justise Winslow, James Johnson and Dion Waiters. No players from that trade now remain with the acquiring teams.

By picking up Dragic’s team option, the Heat for 2021-22 now have under contract Dragic, Achiuwa, Jimmy Butler, Bam Adebayo, Tyler Herro and KZ Okpala.

Teams can carry up to 20 players in the offseason, then limited to a 15-player standard roster as well as two additional two-way players during the season.

This story will be updated.