Why Tyler Herro Might Decline the Heat’s $150M Extension Offer
Tyler Herro’s contract situation with the Miami Heat isn’t as straightforward as it seems. While he’s eligible to sign a three-year, $149.7 million extension starting October 1—a deal the Heat are almost certain to offer—Herro might choose not to sign it. That decision wouldn’t signal dissatisfaction or a trade request. It would be a strategic financial move.
By waiting, Herro opens the door to a potentially much larger payday. If he holds off on extending this summer, he could instead sign a four-year, $206.9 million extension during the 2026 offseason—an increase of $57.2 million in guaranteed money.
At just 24 years old (he turns 25 in January), Herro still has time to earn another big contract later in his career. Signing now would tie him to Miami through the 2029-30 season, but waiting keeps his options open—and could ultimately be more lucrative.
But there’s an even bigger potential prize on the horizon. If Herro makes an All-NBA team during the 2025-26 season, he’d be eligible for a five-year supermax contract in 2026 worth up to $379.9 million. Even if the Heat offer a slightly lower 30% max (instead of the full 35%), that deal would still total around $325.6 million—more than double what he’d earn by signing the current extension.
While some may doubt Herro’s chances of landing All-NBA honors, his recent performance makes the idea plausible. This past season, he averaged over 20 points and 5 assists per game while shooting over 50% on two-pointers and 37% from three—an elite statistical profile matched only by Shai Gilgeous-Alexander, LeBron James, and Nikola Jokić, all of whom made Second Team All-NBA or higher.
Though Herro isn’t on the same level as those stars, he remains indispensable to the Heat. With limited options to retool their roster, Miami relies heavily on him to run the offense. If he takes another leap—say, posting 27 points and 8 assists on efficient shooting—it’s not unreasonable to envision All-NBA consideration.
Even if that doesn’t happen, simply waiting gives Herro the opportunity to lock in a more lucrative contract. So if he declines this summer’s extension, there’s no need for the Heat to worry—it just means they’ll need to be ready to pay up next year.
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