Heat, Pelle Larsson agree to 4-year, $60M extension

Miami Heat guard Pelle Larsson has agreed to a new four-year, $60 million contract extension, with a mutual option for the 2030-31 season, Austin Brown and Steven Heumann of CAA Sports told ESPN on Friday.

A second-round find in the 2024 draft, the 6-foot-5 guard avoids restricted free agency next summer and locks in a new deal with a mutual option that fully guarantees $60 million while allowing either side to opt in on 2030.

Larsson has become a foundation player for the Heat amid their offseason overhaul. He is set to have a major rotation role after averaging 11.4 points per game last season, up nearly seven points per game from his rookie season. Larsson also ranked fourth best in offensive efficiency in Miami, per ESPN Research, and fifth in minutes played.

Larsson started 54 of the 70 games he played last season and ranked in the top 10 in charges drawn last season, according to ESPN Research.

Miami's biggest offseason splash was the acquisition of Giannis Antetokounmpo in a trade that saw a package headlined by Tyler Herro and Jaime Jaquez Jr. going back to Milwaukee. The Heat also signed free agent Klay Thompson after he cleared waivers following a buyout agreement with the Dallas Mavericks.

Miami looks to return to the postseason after missing the playoffs last season for the first time in seven seasons.