Five-time NBA All-Star Klay Thompson is headed to South Beach. After reaching a contract buyout agreement with the Dallas Mavericks on Friday, the four-time NBA champion is expected to sign a two-year, $13 million deal with the Miami Heat once he clears waivers, multiple sources confirmed to ESPN.

The move ends a disappointing two-year tenure in Dallas that never produced the playoff run Thompson and the Mavericks envisioned when they acquired him in a 2024 sign-and-trade with the Golden State Warriors. Thompson appeared in 141 games for Dallas, averaging 12.9 points per contest, but the team failed to reach the playoffs in both seasons—a stunning collapse for a franchise that had championship aspirations after adding the sharpshooting guard to pair with Luka Dončić.

Those hopes were derailed when Dallas controversially traded Dončić during the 2025-26 season, a move that sent shockwaves through the NBA and effectively signaled the end of the Mavericks' competitive window. Thompson, 36, had one year remaining on his three-year, $50 million contract at $17.5 million, but both sides agreed a fresh start made sense.

Why Miami Makes Sense

The Heat emerged as Thompson's top choice for several reasons. Miami has built a reputation as a destination for veterans seeking one more championship run, and the organization's culture under president Pat Riley and head coach Erik Spoelstra remains one of the league's most respected. The Heat finished the 2025-26 season as the Eastern Conference's fourth seed and advanced to the second round of the playoffs before falling to the eventual champion Boston Celtics.

Thompson brings exactly what Miami needs: elite three-point shooting, championship experience, and a low-maintenance presence in the locker room. The Heat ranked 18th in three-point percentage last season at 35.8 percent, and adding a career 41.3 percent shooter from beyond the arc addresses their biggest offensive weakness. Thompson's two-year deal also gives Miami flexibility to remain active in the 2027 free-agent market, when several max-level players are expected to be available.

The Heat's roster already includes All-Star forward Jimmy Butler, center Bam Adebayo, and sharpshooter Tyler Herro, but the team lacked a proven perimeter threat who could space the floor in playoff situations. Thompson fills that void and gives Spoelstra another weapon in late-game scenarios when defenses collapse on Butler and Adebayo.

What Went Wrong in Dallas

Thompson's Dallas chapter will be remembered as one of the NBA's most puzzling roster moves of the mid-2020s. The Mavericks believed they were building a superteam when they acquired Thompson to join Dončić, but the chemistry never materialized. Thompson's scoring dipped to its lowest levels since his injury-plagued 2019-20 season with Golden State, and the Mavericks struggled defensively despite having one of the league's most talented rosters on paper.

The Dončić trade in January 2026—which sent the former MVP to the Philadelphia 76ers—left Thompson in an awkward position. He had signed with Dallas specifically to compete for a fifth championship ring, and suddenly found himself on a rebuilding team with no clear timeline for contention. The buyout allowed both sides to move forward without the distraction of an unhappy veteran on a young, developing roster.

Thompson never publicly criticized the Mavericks' front office, but sources close to the situation indicated he was frustrated by the organization's lack of transparency during the Dončić trade talks and the subsequent shift in team direction. The buyout negotiation was described as "professional and mutual," with Dallas absorbing a portion of Thompson's remaining salary to facilitate the deal.

Can Thompson Recapture His Warriors Form?

The central question surrounding Thompson's move to Miami is whether he can rediscover the elite two-way play that defined his 13 seasons with the Warriors. Thompson's scoring average has declined each of the past three seasons, and his lateral quickness on defense has diminished as he ages and continues to recover from the ACL and Achilles injuries that cost him two full seasons earlier in his career.

But the Heat are betting that a reduced role—where Thompson doesn't have to be the primary perimeter defender or second scoring option—will allow him to thrive in the areas where he still excels. Miami's defensive system relies on team concepts and rotations rather than individual lockdown defenders, and Thompson's shooting gravity alone will open driving lanes for Butler and Herro. If Thompson can shoot 40 percent from three on five or six attempts per game and provide competent defense in a supporting role, the Heat will have made one of the summer's savviest acquisitions.

Thompson's contract also includes a player option for the second year, giving him the ability to return to free agency in 2027 if the fit doesn't work or if another contender emerges with a more lucrative offer. For now, though, Thompson is focused on bringing a fifth championship ring to a new city—and proving that his best basketball isn't behind him.

The Heat open their 2026-27 season on October 21 against the defending champion Celtics at TD Garden, and Thompson is expected to be in the starting lineup. For a player whose legacy is already secure as one of the greatest shooters in NBA history, this final chapter in Miami offers one more chance to add to a Hall of Fame resume—and to remind the basketball world why he's still one of the most dangerous weapons in the game when he gets hot.