Although Haywood Highsmith‘s previous contract with the Suns featured a $1MM partial guarantee for the 2026/27 season, the deal also included Exhibit 3 language protecting the team in the event that any issues arose related to the veteran wing’s right knee, which was surgically repaired in 2025.

After signing with the Suns in February, Highsmith was limited to seven regular season appearances — he didn’t make his debut for two weeks, then he sat out another three weeks in late March and early April due to what the team referred to as right knee injury management. Based on the Exhibit 3 language in the contract, the Suns were able to avoid taking on a $1MM cap hit for Highsmith when he was waived last week, ESPN’s Bobby Marks confirms to Hoops Rumors.

Highsmith’s new one-year contract with the Suns, which also includes an Exhibit 3 clause related to his right knee, per Duane Rankin of The Arizona Republic, is a minimum-salary deal that will pay the 29-year-old a $3,066,143 salary for the 2026/27 season while Phoenix carries a cap hit of $2,449,421. With the Suns over the luxury tax line and facing repeater penalties, it made sense for the team to reduce Highsmith’s cap charge (previously $3,018,158) by waiving him and re-signing him to a new deal, which in turn will lower Phoenix’s projected tax bill.

Highsmith drew interest from rival suitors during his brief free agency, a source told Hoops Rumors, but opted to return to Phoenix after establishing a level of comfort there in the second half of 2025/26. If he finishes the season with the Suns, the six-year veteran will regain Early Bird rights entering his 2027 free agency.

We have more contract details from around the NBA:

• Trendon Watford‘s new one-year, minimum-salary contract with the Pelicans includes a partial guarantee worth $250K, Hoops Rumors has learned. That partial guarantee will increase to $500K if Watford makes the regular season roster, and his salary will become fully guaranteed if he isn’t waived on or before December 30.
• As previously reported, Clippers guard Bradley Beal will see his $6,424,800 salary for 2026/27 become fully guaranteed assuming he’s not waived before the end of the day, which should be a safe bet. The exact amount of the partial guarantee on Beal’s ’27/28 player option is $3,373,020, Hoops Rumors can confirm. That’s exactly 50% of his $6,746,040 option salary.
• Sean Pedulla‘s new two-way deal with the Rockets will cover two seasons, Hoops Rumors has learned. Pedulla will be eligible for restricted free agency in 2028 if he isn’t promoted or waived before then.
• Malachi Smith‘s camp deal with the Raptors includes Exhibit 10 language that will assure him of a bonus worth $91K if he’s waived and then spends at least 60 days with Toronto’s G League affiliate, Hoops Rumors has learned.