The Miami Heat have agreed to a new contract extension with head coach Erik Spoelstra, a deal that Tim Reynolds of the Associated Press reported will be for eight years.

According to ESPN's Adrian Wojnarowski, the deal is worth more than $120 million:

Ira Winderman of the Sun-Sentinel previously reported the deal was worth more than $10 million per season.

Shams Charania of The Athletic and Stadium noted the new deal "makes him one of the top paid head coaches."

The domino effect from Monty Williams' record-setting contract has seemingly already begun.

Wojnarowski reported in May that Williams agreed to a six-year, $78.5 million deal with the Detroit Pistons. It was the largest coaching contract in NBA history and one that made the 52-year-old the highest-paid head coach in the league.

Then Gregg Popovich reportedly received a new five-year, $80 million pact from the San Antonio Spurs, who are looking for him to help nurture the development of Victor Wembanyama.

The $8.5 million the Heat had been paying Spoelstra annually looked like a bargain by comparison, and it was inevitable that the market would catch up.

Wojnarowski reported June 4 on NBA Countdown there was a belief around the league Spoesltra and the Golden State Warriors' Steve Kerr could command around $20 million per year.

Heading into the 2022-23 season, Spoelstra, 53, was already considered one of the NBA's best coaches and perhaps second only to Popovich. The Heat's run to the 2023 NBA Finals only reinforced that perception.

Miami lost its first play-in tournament game to the Atlanta Hawks by 11 points and trailed the Chicago Bulls inside the final three minutes of its do-or-die second play-in game. The team survived and proceeded to knock out three of the top five seeds in the Eastern Conference.

Overachieving in the playoffs has become a common theme for the Heat.

During their Big Three era with LeBron James, Dwyane Wade and Chris Bosh, they symbolized the kind of decadence many associate with the South Beach lifestyle. Rather than continuing that approach after James' departure in 2014, the franchise totally shifted its identity.

Now, Miami feeds off Jimmy Butler and carries a perpetual chip on its shoulder.

However, Butler and Co. are never more dangerous than when they're considered the underdogs. Likewise, Spoelstra seems to be more in his element when he gets to turn role players such as Gabe Vincent, Caleb Martin and Max Strus into key contributors.

To some degree, it mirrors how Pat Riley pivoted from the star-laden "Showtime" Los Angeles Lakers to the New York Knicks, whose brand of physical, defensive basketball helped to define their era.

Spoelstra's last contract carried him through the 2024-25 season, but there's no question he had earned himself a pay raise even before Williams reset the market.

When the moment came, there was also little doubt the Heat would pay whatever it took to keep him in Miami. It's not often an organization willingly lets a surefire Hall of Famer leave the bench.

Unfortunately for the rest of the East, Spoelstra isn't going anywhere.