The Heat are trying to debunk the theory that the only way to build a roster is with clear-cut All-Stars.
Unlike the two championship teams in 2012 and 2013, this Miami roster was constructed with depth but without major star appeal (sorry, Goran Dragic). Year 2 of this model led to a playoff spot and first-round exit.
With the Heat now eliminated from the postseason, let's look ahead to the free-agency, draft and trade decisions facing Miami this offseason.
More summer focus: Click here for every team so far
The cost of being a playoff team
The Heat made a calculated risk last summer.
By bringing back the nucleus (plus Kelly Olynyk) of a team that finished 41-41 but out of the playoffs, they made a financial investment in stability. While other teams (Atlanta and Chicago) decided that just making the playoffs was not good enough and chose lottery combinations, Miami picked the opposite.
The goal? Stay competitive in a wide-open Eastern Conference. The reward turned into 44 wins and a first-round loss to Philadelphia.
Now entering the offseason, Miami faces a financial burden and roster restrictions.
Despite returning 11 players on a team that totaled $103 million in salary (ranking 20th), Miami will start free agency right below the $123 million tax threshold. The $16 million difference results from the Nets' offer sheet to Tyler Johnson that makes the current contract increase from $5.8 to $19.2 million next year.
Although the Heat decided not to tank, the reality is that Miami is married to its current roster for the next two seasons (2018-19 and 2019-20).
How this team improves will come down to four things (plus health and barring trades):
The familiarity of 80 percent of the roster returning
The role of Hassan Whiteside
The play of Justise Winslow in the playoffs translating to the regular season
Dion Waiters recovering from his ankle injury, with Wayne Ellington likely not returning
The future of Whiteside
The tenure of Hassan Whiteside in Miami could compare to somebody who goes from renting to buying the house he or she has been living in.
The $1.7 million rental of Whiteside and two-year tryout period in 2014-15 and 2015-16 turned into a $98 million investment in 2016. Now Miami faces the financial risk of a player who can be dominant on the court but at times resorts back to the same immature player who was out of the league in 2014.
The first-round loss to Philadelphia could be best described as a microcosm for the center this season. Often disengaged, Whiteside totaled 16 points and 18 rebounds in four games compared to 13 points and 13 rebounds in a Game 4 loss.
Now entering the third year of his contract and owed $25 and $27 million the next two seasons, Whiteside's production and role moving forward will determine if Miami is more than just a middle of the pack Eastern Conference team.
If Whiteside's play remains inconsistent, Miami will have an expensive problem.
Creating flexibility for Ellington
Wayne Ellington will likely see a comparable starting salary in free agency as he did this year. The difference is that the $6.3 million per year bargain could be in a different uniform.
While the Heat have early Bird rights and can pay the guard up to 105 percent of the average player salary (a projected $8.6 million), Ellington will likely be a casualty of the $35 million still owed to reserve guard Dion Waiters with the Heat pressed up against the luxury tax.
If the Heat do not make roster moves to create financial flexibility and bring back Ellington at a salary of $6 million, the signing would cost Miami $16 million in salary and taxes.
Essentially, Ellington would be an expensive luxury to have coming off the bench.
Summer cap breakdown
After spending the past two offseasons chasing Kevin Durant and Gordon Hayward, Miami will not be an active participant when it comes to the likes of LeBron James and Paul George.
The free-agent spending of last summer and the increase in the Tyler Johnson contract have the Heat with nine players comprising $118 million in guaranteed contracts, $5 million below the luxury tax.
Besides early Bird rights on Ellington, Miami likely will have only the $5.4 million tax mid-level exception to use.
Dates to watch
Despite the financial crunch of salaries, not bringing back Jordan Mickey or Rodney McGruder would be more about creating a roster spot.
A replacement if either is waived would cost $1.5 million.
Restrictions
Because of the draft compensation sent to Phoenix from the Goran Dragic trade, Miami will be restricted on sending future first-round picks in trades.
Starting the night of the draft (after the Suns select), Miami can trade its own first in 2019 but only if it is unprotected. In addition, the Heat can trade a first starting in 2023 (two years after the Phoenix pick is conveyed) but are limited on adding protection because of the seven-year rule. In this case, Miami can only trade a first from 2019 to 2025, not in consecutive seasons, and protection would not be allowed to carry past the 2025 draft.
Tyler Johnson's $19.2 million salary is not the only obstacle the Heat will have if they attempt to trade the guard. Johnson has a 15 percent trade bonus in his contract valued at $2.9 million. The bonus would be added to his 2018-19 salary if he were traded after July 1.
In addition to having incentive compensation for minutes played, Kelly Olynyk has a 5 percent trade bonus. The bonus is $1.1 million and would be divided and added to his 2018-19 and 2019-20 salaries.
The free-agent focus
There are positives with the roster restrictions in Miami. A deep team returns, with 12 players under contract and not many holes to fill.
Despite the likelihood of losing Ellington, the Heat have a $35 million insurance policy in Waiters and can bring Dwyane Wade back on a $2.3 million minimum contract.
Extension-eligible candidates
The Heat can either take a patient approach with Winslow and get their finances in order for 2019-20 or invest in the forward now on a team-friendly contract like Josh Richardson (four years, $42 million) signed this past September.
The Heat will have $117 million in committed salary in 2019-20, but they get a reprieve, as the luxury tax line is expected to increase from $123 to $131 million.
Winslow, after missing most of his sophomore season and playing inconsistently in the first half of this season, found an identity coming off the bench. Exploring extension talks with a discount would save the Heat in tax penalties in 2019-20.
Besides deciding what to do with Winslow, Miami has four players -- Hassan Whiteside, Tyler Johnson, Goran Dragic and Rodney McGruder -- who are extension-eligible.
The draft assets
Miami will likely not have a seat at the table when it comes the draft in June. The Heat will send their first-round pick this year to the Suns and will send Phoenix an unprotected first in 2021.
As a result, Miami will not have a first in June or a second, as it was traded to Houston (via Charlotte) in 2016 to create tax savings. Miami also does not have its own second in 2019 (to Minnesota), 2020 (to Sacramento) or 2023 (to Dallas).
Buying into the draft for Miami will not be easy. Because $5.1 million was sent along with Josh McRoberts to Dallas las July, the Heat can agree to buy a second-round pick the night of the draft but not complete the trade until July 6, once the new calendar year begins.