Published Tuesday, Jul 16, 2013 at 3:38 pm EDT Last updated 6 hours and 30 minutes ago
In a sign of the increasingly tighter times when it comes to NBA payrolls, the Heat announced on Tuesday that they would exercise the amnesty clause on guard Mike Miller, cutting him from the team he helped to two championships in two years.
But in making the move, the Heat will have Miller?s $6.2 million contract removed from its books this year, and will be able to avoid the $6.6 million hit he would have cost the team had he opted in for next season. Under amnesty rules, the Heat still have to pay Miller the remainder of his contract, but for luxury tax purposes, Miller?s deal won?t count.
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Under the new tax rules, teams are required to pay an escalating amount based on how high over the $71.7 million tax threshold they are. Before cutting Miller, the Heat was at $86.5 million in payroll, which would have worked out to a tax bill of a little more than $28 million.
Because cutting Miller?s contract keeps the Heat within the second zone of tax escalation, cutting his contract pays off exponentially. Without Miller, the tax bill drops to about $11 million. There was some speculation that team owner Mickey Arison?who faced the same dilemma in regards to Miller last year?would keep Miller because the team is coming off back-to-back titles.
The Heat had hoped to move Miller in a trade before finally using the amnesty clause on him.
In a statement, Heat president Pat Riley said, ?After many discussions internally and a sincere effort to explore the trade market, we made a very difficult decision to use our Amnesty provision on Mike Miller. Mike had an incredible impact on the Miami Heat; helping us to three finals appearances and winning back-to-back World Championships. This was a very difficult decision for me personally, the Arison family, Erik (Spoelstra) and the entire Miami Heat organization. Mike was one of the best we have ever had here, and will be sorely missed.?
Miller, who has been bothered by a back injury for the last two years, averaged just 3.4 points in the playoffs this year, but he played 21.7 minutes the seven Finals games, including five as a starter. He shot 61.1 percent from the 3-point line in the series.
It is possible that Miller will still be in the league. He first must go through a 48-hour waiver process in which teams under the salary cap can bid on him. Once that process passes, Miller will be an unrestricted free agent, but he can?t re-sign with Miami. Miller will consider retirement, too.
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