[Jackson] According to two sources the Heat has been giving thought to potentially using the waive-and-stretch provision on Kyle Lowry if Miami is unable to trade him.

According to two sources, the Heat has been giving thought to potentially using the waive-and-stretch provision on Lowry if Miami is unable to trade him, though a firm decision on that has not been made.

In other words, if the Heat goes the waive-and-stretch route, Lowry would have a cap hit of $9.9 million each of the next three seasons instead of $29.7 million next season, which would be his cap hit otherwise.

The upshot of that: Miami’s 2023-24 salary cap commitments would shrink from $178.5 million to $158.5 million, below the $165 million tax line and the $182.5 million second apron, a threshold that carries significant restrictions, including the inability to sign buyout players who were making more than $12 million from the team that released them.

That extra flexibility could allow the Heat to re-sign guard Gabe Vincent in the days ahead without paying an enormous tax.

Source (Paywall)