Heat, Pelle Larsson Agree to $60M Extension

The Miami Heat and shooting guard Pelle Larsson have agreed to a four-year contract extension that could be worth up to $60 million. The deal includes a mutual option for the 2030-31 season, according to a person familiar with the talks who spoke Friday.

The agreement secures a key player for the Heat, impacting the team's roster and future salary cap. Larsson will continue to play a significant role in upcoming seasons, affecting the team's competitiveness and long-term strategy.

Larsson's starting salary for the 2027-28 season will be $13.5 million, with planned increases for subsequent years. The contract remains unsigned as of Friday. The 25-year-old guard is scheduled to earn $2.3 million this season. Larsson would have been eligible for restricted free agency next summer had the sides not reached an agreement.

Originally Houston's 44th overall pick in the 2024 draft, Larsson's rights were traded to Miami as part of a three-team deal. He quickly became an important part of Coach Erik Spoelstra's rotation. Larsson played in 55 games during his rookie season and appeared in 70 games last season, starting 54. He averaged 4.6 points on 44% shooting as a rookie, improving to 11.4 points per game last season on nearly 50% shooting. The Heat organization has praised his development, including his performance for native Sweden in World Cup qualifying games this past summer. Larsson averaged 26 points in four qualifiers for Sweden, with two 31-point games against Slovenia and Finland.