The Miami Heat are informing prospective free agents that they expect to have as much as $12 million in salary cap space to offer after getting LeBron James, Dwyane Wade and Chris Bosh to re-sign.

With reports of James seeking a max contract around $20.7 million, the pay cuts that Wade and Bosh are willing to take are drastic.

Wade and Bosh were each scheduled to earn earn more than $20 million this upcoming season and a total of $40 million over the next two years. 

On Tuesday, the Portland Oregonian reported that Bosh has plans to accept a five-year contract starting at $11 million, and Wade would accept a four-year deal starting at $12 million.

The Heat are angling to be serious bidders for Kyle Lowry.