If the Miami Heat hope to rejoin the NBA’s elite, few decisions this offseason will be more critical than how they approach top stars contract extension eligibility.
Top prospect, 25, has made a strong case for long-term investment with his performance. He wrapped up the 2024–25 regular season averaging 23.9 points, 5.5 assists, 5.2 rebounds, 0.9 steals, and 3.3 made three-pointers per game on efficient shooting splits of .472/.375/.878.
His breakout season also earned him his first All-Star selection, adding to a résumé that already includes the 2022 Sixth Man of the Year award and 2020 All-Rookie honors.
His playoff experience is also notable—he’s already appeared in 50 postseason games by age 25. He played a key role during the Heat’s run to the 2020 NBA Finals and was a major contributor off the bench during their 2022 push to the Eastern Conference Finals.
On the surface, extending he seems like an obvious move for the Heat, as he continues to show steady progress and growing value.
However, committing to a major extension carries inherent risk. While Herro has delivered solid returns on his current deal, the next contract would likely demand continued, and possibly substantial, growth in his game to justify the price tag.
In a salary-cap league, every contract must bring appropriate value. If a player isn’t delivering production equal to their cap hit, that financial burden can hinder a team’s flexibility and future success.
According to ESPN’s Bobby Marks, Tyler Herro is eligible to sign a three-year, \$149.7 million extension with the Miami Heat if both sides reach an agreement before October 20. If they wait until the 2026 offseason, Herro could then become eligible for a four-year, \$206.9 million deal.
Should Herro earn All-NBA honors during the 2025–26 season, he would qualify for a supermax extension worth five years and \$380 million.
Put simply, Miami could lock Herro in now at roughly \$49.9 million per year—or risk facing a scenario where they may have to pay him an average of \$76 million annually. From a financial standpoint alone, it’s understandable why some argue that the Heat should extend Herro sooner rather than later to avoid a much larger bill.
The dilemma, however, is whether Herro’s current production justifies a \$49.9 million cap hit per season. And if not, does he show enough promise to eventually live up to that valuation?
If the answer to either of those questions is no, then it would be risky for Miami to offer him an extension simply based on the fact that he’s become an All-Star within their system.
Is Tyler Herro a max-level player?
Tyler Herro just wrapped up the most productive season of his career, but it came during a turbulent year for the Miami Heat. The 2024–25 campaign was nearly a complete failure, marked by Jimmy Butler’s departure following a public fallout, a disappointing 37-45 record, and a first-round playoff sweep.
Adding insult to injury, three of Miami’s four postseason losses came by blowout margins—losing by at least 21 points each time, including a 37-point defeat at home in Game 3 and an embarrassing 55-point loss in Game 4.
Herro, despite a strong start in the series with 21 points in Game 1 and an impressive 38 in Game 2, faded badly down the stretch. He managed just 13 points on 5-of-13 shooting in Game 3 and only four points on 1-of-10 shooting in the decisive Game 4.
It was a disappointing end to what had been a promising season for Herro, who looked to be making strides—until the playoffs exposed some limitations.
It’s important to note that 2024–25 was Herro’s first season as the offensive focal point following Butler’s exit. With more experience in that role, he may still have room to grow.
But as the Heat face the decision between committing to Herro at \$49.9 million per season now—or potentially \$76 million annually later—the stakes couldn’t be higher. Miami must weigh promise against performance in determining its next steps.