What happened: The new contract carries a $60 million total value over four years and includes a mutual option for 2030-31. It keeps Larsson in Miami going into the 2026-27 season after he became a steady part of the rotation.

Why it matters: Miami is locking in a young perimeter piece after lining up a larger role for Larsson heading into camp. The deal gives the Heat cost certainty on a player they expect to feature more prominently next season.

What to watch: The next marker is Miami's formal announcement and how Larsson is used once camp opens. His preseason role should offer the clearest early read on where he fits in the 2026-27 rotation.