Heat’s Keshad Johnson not alone when it comes to stepping back (66% pay cut) to two-way deal

MIAMI — Although rare, Keshad Johnson's shift from a standard contract with the Miami Heat to a two-way deal with the team has NBA precedent.

With the move, Johnson's salary not only goes from last season's $2 million to $678,882 for the coming season, but along with the 66% pay cut, he now only can be on the standard roster for 50 of the regular season's 82 games, ineligible for the playoffs.

The Heat previously have utilized the approach to continue ongoing development with a prospect, taking the same approach during what has proven to be an enduring relationship with guard Dru Smith .

A constant with the Heat since adding Johnson undrafted out of Arizona in 2024 has been the respect of the coaching staff.

"Everybody roots for him because he's so pure," coach Erik Spoelstra has said. "He really works at it. He stays ready so he doesn't have to get ready."

Teams are allowed to carry up to three two-way players, able to swap out those roster spots at any time, with the salaries not counting against the salary cap, luxury tax or hard cap.

Among NBA players who previously have taken the step back from standard deals to two-way contracts is a group that includes former Heat prospect Micah Potter. Others who also have accepted the shift to the lesser, two-way deals after previously securing full-salary standard contracts have been Keaton Wallace with the Atlanta Hawks, Trevelin Queen with the Orlando Magic, Lester Quinones with the Golden State Warriors, JT Thor with the Washington Wizards and Kessler Edwards with the Dallas Mavericks.

Two-way contracts are limited to players with three or fewer seasons of NBA service, with Johnson entering his third season in the league.

Players on two-way contracts can be converted at any time to standard deals without having to clear NBA waivers, leaving that door again open for Johnson.

With Johnson under contract, it also should make it easier for the NBA to allow him to defend his Slam Dunk championship during 2027 All-Star Weekend in Phoenix.

Johnson has shown ongoing appreciation during each step with the Heat. as uneven as the pathway has been.

"Throughout my career," he has said, "I want to keep making an emphasis that I'm willing to do everything, that I'm gritty. I want that to be my identity. I want to make an example of how much of a Heat Culture guy that I am. I really mean it."

With Thursday's signing of free-agent center Nick Richards , it put the Heat's standard roster at 14 under contract, the number required to begin to sign players to Exhibit 10 tryout contracts.

Up first for the Heat was undrafted Louisville forward J'Vonne Hadley, who was a starter on the Heat's summer-league team.

Players on Exhibit 10 contracts can be converted to two-way contracts, potentially putting Hadley in competition in training camp with Heat two-way players Johnson, Vlad Goldin and Tre Donaldson. Teams are allowed to carry a maximum of three players under two-way contracts.

Players on Exhibit 10 contracts also can be funneled to team's G League affiliates, with nominal guarantees. The Heat's G League affiliate, the Sioux Falls Skyforce announced their season will open Nov. 7.