Getty Erik Spoelstra of the Miami Heat was given a new $120 million contract extension.
It was good news for the Miami Heat and Erik Spoelstra on Tuesday as Spoelstra was given the richest total contract in NBA history, worth $120 million over eight years.
The Athletic’s Shams Charania posted it first, writing on Twitter/X, “Miami Heat’s Erik Spoelstra – a two-time NBA champion and top-20 in all-time coaching wins – is signing a new contract extension with the franchise that makes him one of the top paid head coaches.”
Then, from ESPN’s Adrian Wojnarowski, came the details of just how much Spoelstra would be making from here: “ESPN Sources: Miami Heat coach Erik Spoelstra’s contract extension includes the most committed coaching money in history: eight-years, $120-plus million.”
ESPN Sources: Miami Heat coach Erik Spoelstra’s contract extension includes the most committed coaching money in history: eight-years, $120-plus million.
That is a good payday by any measure. But considering what Spoelstra has done in Miami in his tenure with the Heat, he still might not be getting enough. That’s the view from one Eastern Conference executive who spoke with Heavy Sports about the deal.
“He’s still underpaid,” the exec said with a laugh. But he meant it. More on that to follow.
Erik Spoelstra is 725-506 in his Career
Certainly, Spoelstra has earned his new contract extension, given the sterling record he has posted with a variety of different teams over the years. He started with the Heat in 1995 as a 25-year-old video coordinator, and made his way to assistant coach two years later. He took over the head coaching reins for Pat Riley in 2008, at the age of 38.
Since then, Spoelstra has compiled a 725-506 record and established himself as arguably the best coach in the NBA. Certainly, there have been coaches who have had success and longevity, but their success is usually tied to one or two players. Gregg Popovich with Tim Duncan and the Spurs, for example, or Jerry Sloan with Karl Malone and John Stockton in Utah.
But Spoelstra has coaches Dwyane Wade-centric Miami Heat teams. He has coached the LeBron James Big Three teams. He coached the post-LeBron teams. Now, he is coaching the Jimmy Butler Heat. And he’s made the playoffs in 12 of 15 years.
As the Bleacher Report NBA account posted:
“Erik Spoelstra started out as a video coordinator with the Heat in 1995. 29 years later in Miami:
- 725 Wins
- 109 Playoff wins (5th all time)
- 3x champion (two as HC)
- 7x East titles & NBA Finals appearances
- -Just signed 8-year/$120M+ extension
- Job’s not finished for Coach Spo”
Erik Spoelstra started out as a video coordinator with the Heat in 1995. 29 years later in Miami:
-725 Wins
-109 Playoff wins (5th all time)
-3x champion (two as HC)
-7x East titles & NBA Finals appearances
-Just signed 8-year/$120M+ extension
Job’s not finished for Coach Spo…
Miami Heat Save Big Money With Development
But when it comes to compensation, the NBA executive says that it is absolutely true that Spoelstra remains underpaid. His extension will average more than $15 million per year, but Spoelstra’s ability to identify and develop young role players for the Heat is worth a lot more.
“They’re getting good minutes from guys like (Haywood) Highsmith, Orlando Robinson, Jamal Cain,” the executive said. “They’re paying those guys $5 million or so, combined. That is such a huge, huge value when you’re putting together a roster and you know your coach is going to squeeze something out of the 10th guy, the 11th guy, the two-way guys. How many good teams are doing that? None. Only Miami.
“That is what makes Erik Spoelstra different, what makes him special. They had (Max) Strus and Gabe Vincent starting in the NBA Finals on ($1.8) million contracts. Because he developed them. It’s not just him—they’ve got a whole system—but he is running the show. He saves them more than $15 million per year. Seriously, he is still underpaid.”