Swedish wing Pele Larson agreed to a four-year, $60 million contract extension with Heatagents Austin Brown and Stephen Hoiman tell ESPN’s Shams Charanya (Link to Twitter).
Larson will make $2.3 million this season after Miami exercised the team option on his contract in June. He would have been on the path to restricted free agency in 2027, but will instead sign a four-year extension that includes a mutual option — both players and team option — for the 2030/31 season, for Charanya.
Larsson signed a three-year minimum salary contract after being selected 44th overall in the 2024 draft. Miami acquired his rights in a draft day trade with Houston.
According to Ira Winderman of The South Florida Sun Sentinel (Link to Twitter), the former Arizona Wildcat expansion, has a rising cap structure and will start around $13.5 million in 2027/28.
Larson’s new deal will cost less than projected exclusion of middle-level non-taxpayers for ’27/28, notes Spotrac’s Keith Smith (via Twitter), and is similar to a four-year, $62.4 million rookie scale extension Nikola Jovich got the heat last year, tweets Barry Jackson of The Miami Herald.
Larson’s extension is also similar in length and contract structure Nikhil Alexander-Walker ($60.6 million over four years) and Quentin Grimes ($60 million over four years) signed in 2025 and 2026, respectively. Alexander-Walker got his deal from Atlanta via a sign-and-trade, while Grimes was signed by the Lakers with room usage.
Earning some rotation minutes as a rookie in 2024/25, averaging 4.6 points, 1.7 rebounds and 1.2 assists in 55 regular season games (14.2 minutes per game), Larsson has become a vital player for the Heat in his second season. In 70 games during the 2025/26 season, including 54 starts, he averaged 11.4 ppg, 3.5 ppg and 3.4 ppg at .496/.323/.797 while shooting 26.4 mpg.
Larson received consistent praise from the head coach Erik Spoelstra throughout last season for his willingness to do the dirty work and win unselfishly. Charania (Twitter references) calls the 25-year-old guard/forward a “core piece” who is expected to play a “major role in the rotation” for the team in 2026/27.
Larsson is Sweden’s best player for the national team and has put in some great performances for his home country this summer during several World Cup qualifiers.
