Goran Dragic confirmed during the opening minute of Friday's NBA free-agency negotiation period that he will return to the Miami Heat.
Dragic's deal is two years, at $37 million, with a team option in the second year, paying $18 million this coming season and then $19.5 million in 2021-22.
The agreement means the Heat effectively are removed from the salary-cap space game this offseason to directly sign a high-priced outside free agent, but also allows the Heat to potentially maximize cap space for the 2021 offseason.
The veteran point guard who had grown particularly close to Heat forward Jimmy Butler last season made his announcement on social media at the 6 p.m. start of the league's negotiation period, posting, "I'm glad that I can announce that I'm staying."
Dragic, 34, played as a reserve during the regular season in 2019-20 before returning to a starting role to help lead the Heat to the NBA Finals. He earned $19 million last season.
The Heat in recent days posted billboards in Dragic's native Slovenia with slogans that included, "Your second family is always with you." He then posted photos of those billboards on social media, as well as campaign-style placards at his house put in place by the Heat.
"What an amazing surprise," he said, "Can't wait to be back at work."
Dragic tore his plantar fascia during the Heat's six-game loss in the NBA Finals to the Los Angeles Lakers, but said he has fully recovered.
The Heat open training camp the first week in December, with the 2020-21 NBA season scheduled to open Dec. 22.
Agreements cannot become official until the 12:01 a.m. Sunday start of the league's signing period.
