Miami Heat’s Kelly Olynyk makes decision on his player option

Center Kelly Olynyk has decided to opt into the final season of his contract with the Miami Heat, according to a league source.

Olynyk, 29, is now locked into the fourth and final year of the $50 million deal he signed with the Heat in the summer of 2017. He opted into a salary of $12.6 million for the 2020-21 season, a decision that was widely expected because of the hit NBA finances took during the COVID-19 pandemic with the 2020-21 salary cap lower than projected.

Olynyk had until Thursday at 5 p.m. to make a decision on his player option. With Olynyk informing the Heat he will opt in, he immediately becomes trade eligible. He has a $2 million trade kicker if he’s dealt.

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The decision to bypass free agency this year means Olynyk will become an unrestricted free agent next offseason in 2021.

Olynyk (6-11, 240) averaged 8.2 points while shooting 46.2 percent from the field and 40.6 percent from three-point range, 4.6 rebounds and 1.7 assists in 67 regular-season games (nine starts) last season.

He averaged 7.6 points on 47.4 percent shooting from the field and 34.7 percent shooting on threes, 4.6 rebounds and 1.1 assists in 17 playoff games.

During Olynyk’s first three seasons with the Heat, he has averaged 9.9 points on 47.6 percent shooting, five rebounds and 2.1 assists in 222 regular-season games (67 starts).

When it comes to how big of a role Olynyk will play for the Heat this upcoming season, that answer is still to be determined.

Through his first three seasons with the Heat, Olynyk has been in and out of the starting lineup and minutes have been unpredictable. He averaged a career-low 19.4 minutes this past season after averaging a career-high 23.4 minutes in his first season with Miami in 2017-18.

But Olynyk’s skill set as a three-point shooting big man who’s also an above average passer for his position is definitely useful, and he’ll likely be part of the Heat’s rotation again.

Following Olynyk’s opt in decision, the Heat’s current salary-cap breakdown for next season looks like this: Jimmy Butler ($34.4 million), Andre Iguodala ($15 million), Olynyk ($12.6 million), Bam Adebayo ($5.1 million), Tyler Herro ($3.8 million), Duncan Robinson ($1.7 million), Kendrick Nunn ($1.7 million), KZ Okpala ($1.5 million), Chris Silva ($1.5 million) and a projected $2.6 million cap hit for 20th overall pick Precious Achiuwa. In addition, a $5.2 million waive-and-stretch cap hit for Ryan Anderson is still on Miami’s books, as well as a $350,000 waive-and-stretch cap hit for AJ Hammons.

Add that up, and the Heat has about $85 million committed to 10 players for this upcoming season with the 2020-21 salary cap set at $109.140 million.

The Heat is about $45 million under the luxury tax line and is expected to operate as an over-the-cap team, as opposed to a room team. That will allow Miami to exceed to cap to signs its unrestricted free agents, while also having the ability to utilize a $9.3 million midlevel exception and a $7 million trade exception.

The Heat has six impending unrestricted free agents this offseason: Jae Crowder, Goran Dragic, Udonis Haslem, Solomon Hill, Derrick Jones Jr. and Meyers Leonard.

The Heat wants to re-sign Dragic and Crowder and also has expressed interest in re-signing Jones and Leonard, according to multiple sources.

Haslem announced last week that he will return to the Heat for an 18th season. He’s expected to sign a one-year, $2.6 million veteran minimum contract with Miami, but he would count only about $1.6 million against the salary cap and luxury tax in this scenario because of NBA salary-cap rules.

Free agent negotiations are allowed to begin Friday at 6 p.m., with signings permitted to start on Sunday at 12:01 p.m.